2. Fundamental trading

Sometimes the market misprices the fundamentals, and the gap is the trade. You find two assets whose relative valuation is stretched on a metric you trust, one cheap and one rich, then go long the underpriced leg, short the overpriced one, and wait for the ratio to converge.

The metrics are the crypto-native ones: TVL vs FDV (a protocol doing real volume priced below a hype-driven peer), revenue vs valuation (fees earned against market cap), supply vs price (short a token walking into a large unlock, long one with clean tokenomics). Example: two lending protocols with similar TVL but a 3× gap in FDV long the cheaper, short the richer, and you're paid if the market closes the gap regardless of where the sector goes.

Because the position is market-neutral, "the whole sector dumped" doesn't decide your outcome. The relationship correcting does. Use TP/SL on the ratio to mark where convergence is "done," and watch net funding so a slow grind doesn't get eaten by carry.