Continue to brush Binance Alpha, which tokens have a better cost-performance ratio?

Original | Odaily Odaily Daily ( @OdailyChina )

Author | Azuma (@azuma_eth)

Last night, Binance Alpha tokens ZKJ and KOGE encountered a flash crash, experiencing a “knee chop” level drop as a result of the unknown whale intentionally withdrawing liquidity and dumping.

• Odaily Note: For details, see “KOGE and ZKJ caught in one night, Binance Alpha forced to grow.”

For a long time, ZKJ and KOGE have been the main choices for users to increase their volume and earn points on Binance Alpha, as the two tokens have the most abundant liquidity and the lowest pool fees (0.01%). Previously, the focus was mainly on trading between the two tokens, but Binance has issued a latest announcement prohibiting trading between Alpha tokens.

After yesterday’s “harvest”, many users felt a bit confused this morning about whether to continue participating in Binance Alpha after getting up. Some users may have chosen to give up, but there are also some users who believe that Binance Alpha still has potential returns, yet they don’t know which tokens to brush after avoiding ZKJ and KOGE.

“Efficiency” and “Wear”

First and foremost, it is important to clarify that the two key factors that users need to pay attention to when performing Binance Alpha distribution are “efficiency” and “wear.”

“Efficiency” refers to the number of points that can be obtained per unit of trading volume.

Starting from May 1st, Binance launched a points incentive program, which doubles the trading volume for BSC series Alpha tokens and limit orders. In this context, choosing to trade BSC series Alpha tokens or using limit orders is undoubtedly a more efficient choice. However, considering situations like last night’s flash crash, I personally do not recommend using limit orders that amplify uncertainty and prolong operation time. Instead, I recommend directly choosing BSC series Alpha tokens for “instant entry and exit” at market price.

“Wear” encompasses multiple aspects, such as security, fees, and slippage.

The security can still refer to yesterday’s flash crash situation. Personally, I believe that most Alpha tokens are not suitable for long-term holding (except for a few tokens, I also do not recommend forming LP), so the more recommended approach is still “in and out in seconds, without getting involved.”

The transaction fees and slippage are the main content of this article. Currently, BSC-based Alpha tokens mainly utilize PancakeSwap to build liquidity pools, with transaction fee levels varying from 0.01%, 0.05% to 0.25%, and 1%. It is evident that tokens with a pool fee level of 0.01% will have lower wear and tear; slippage is mainly influenced by the liquidity availability of the pool, so we should prioritize trading tokens with larger pool liquidity.

PancakeSwap Pool Situation

The image below shows the ranking of Alpha tokens with a liquidity fee level of 0.01% based on the pool size, using real-time data from PancakeSwap. We hope this will help you in your subsequent score-boosting operations.

Epilogue

The above presents the objective liquidity status of all Alpha tokens with a liquidity pool fee level of 0.01% within the current BSC ecosystem, but in specific operations, there are still some small tricks that can reduce slippage — for example, some users might use the strategy of observing K-line trends to try to buy and sell during upward trends to offset trading slippage. However, I am not very skilled in this area and it is easy to lose balance and turn to long holding due to misjudgments, so I do not recommend users with average trading instincts to operate this way.

Lastly, I would like to add two points.

First, the gameplay of Binance Alpha is fundamentally a game between expected returns and cost accumulation. After the collapse of the most liquid ZKJ and KOGE, users choosing to trade other tokens are likely to experience higher slippage. Therefore, users need to evaluate the expected number of airdrops or participation in new projects they can receive every 15 days based on their points status, and then estimate the yield and risk-return situation according to the slippage.

Secondly, after this incident, Binance Alpha is likely to make certain modifications to the subsequent gameplay rules, and users should pay attention to the changes in the rules.