Dear Bankless Nation,

Good news! Your Bankless subscription just got another upgrade. 🚀

Introducing…the Alpha Report.

Our new monthly report gives you:

• Token ratings (what should I buy/sell/hold?) 📊

• Market themes (what catalysts should I watch?) 📈

• DeFi at a glance (what’s the health of the DeFi market?) 👀

Our best DeFi ideas distilled into 15 mins of actionable alpha. Crazy valuable insight.

This month we’ve initiated coverage on BAL, FXS, MKR, SUSHI, & TRIBE. 🔥

Expect to get one of these on the first Friday of every month as part of your Bankless Premium Subscription from now on.

You ready?

Let’s get to the Alpha. 🚀

- RSA

🚨 None of the information in this article is financial advice. All of it is for educational purposes only. Please do your own research.

Token Ratings 📊

Analyst notes, coverage, and six-month price targets on DeFi’s largest tokens. 

👉 Get the full token rating spreadsheet here 👈

Rating Scale:

1. Overweight – We expect this token to outperform the broader market.

2. Neutral – We expect this token to perform in line with the broader market.

3. Underweight – We expect this token to underperform the broader market.

Balancer (BAL)

🏅 Rating: Overweight
🎯 Price Target: $31-46 (100-200% upside)

• We are initiating coverage of BAL, the native token of decentralized exchange Balancer, with a rating of overweight. 

• We are assigning this rating due to the activation of veBAL. An overhaul of BAL’s tokenomics, the upgrade will entitle holders who lock LP tokens from the 80/20 BAL/ETH pool to 75% of fees generated by the protocol, boosted yields when providing liquidity, 10% of emissions, and the right to vote on BAL rewards directed to different pools on the exchange. 

• We believe veBAL significantly enhances the utility of the token, with a design that locks up supply while simultaneously using it as liquidity and drives demand through voting rights over emissions. Like tokens with a similar design, such as CRV, we feel that BAL will become a top target among DAOs who wish to lay claim to liquidity on the exchange. We have already seen the first signs of this, with a proposal making its way through Aave governance to acquire 300,000 BAL, worth $4.5 million at current prices.