Become your own hedge fund | Yield Hacking Strategy - Discussion

As we all got this far I assume we understand we need to become our own bank but as said at the start we can go deeper than that. By becoming your own Bank you also have the freedom to manage your own funds and thanks to DeFi we now all have financial superpowers and capabilities that are normally only for the 1%. Let’s use our new knowledge wisely and discuss, explore, and test Yield Hacks together. As Andrey Explained to us always be aware of the risk you’re taking or trading with, do not be too greedy and ignorant.

Let’s start an in-depth forum discussion on cool Yield Hacking Strategy I will be publishing some of my personal strategies soon.


With the space developing so quickly is it really feasible to use tools like FURU? surely if there is an arbitrage opportunity as good as the one you somehow found in your video a bot would be on it faster than I can drag some blocks together? I think these opportunities exist perhaps more within pools that are less accessible through apps like FURU… One thing I found interesting was playing around and seeing exactly what ‘$1’ worth of compoundDai is really worth in relation to unit price… I am struggling to find arbitrage opportunities that don’t require a bot but maybe I am just looking in the wrong places, I like the idea of an every day person being able to access these opportunities… One dangerous thing I still see in the crypto space today is the ‘early adopters’ potentially turning into the new crypto elite just like bankers are today, and the everyday average user still ending up in a position where the equality isn’t truly in their favour…


My question here: How do I found an arbitrage opportunity? That is for me the big question… Where should I look at? Do you do it with bots “scanning” all possible opportunities at the same time? Or do yo do it by your own?


I just spent about an hour playing with FURU. I love the tool, but man it is going to be hard to find the right setup. I love the idea of grabbing a flash loan, swapping, and swapping again to make a profit. It’s so damn awesome! I like the bot idea of doing some of the legwork if possible.

Also other areas that I loved -

  • Token Sets - I love this idea. I will be investing in one of these tonight. I saw this on Argent Wallet, and now I understand it much better.

  • Zapper - Awesome way to take yield. I really need to watch this section a few times to understand.

Amazing Amadeo, this stuff is very exciting.


Getting more interesting… But bit early to usk us to share DE-FI arbitrage strategies. That is what we are here to learn from you, I thinks :).


Ok challanges :wink:
Why is token sets not really that good?
Look deeper into there documentation they are using Dutch Actuation model when doing re-balancing … (I’m Dutch but a Dutch actuation for re-balance is a weird move …) Pie DAO wich I will publish about on in an interview.does this better with a combination with Balancer.


Excellent advice! I will look into this. I’ve been wanting to get into Balancer. Where can I see your interview? Thanks Amadeo!


Still need to record it and hope to publish it soon.

Growing so fast, that was eliminated. I preferred the old look as it had more information.
Question: What is the difference between tokensets and zapper in regards to yield? Which method gives the better return?


Unfortunately inequalities will always exist. Even if you create a system where everyone starts with the same amount of coins, people who take more risk ,study, research & work harder will always end up with the huge majority of the coins.


Been thinking about investing into defi and I came up with a simple strategy to fit my goals.

I want to invest in Aave (LEND), Maker Dao (MKR) and Kyber Networks (KNC) but my funds are limited AND I also want to go long ETH.

So I came up with this:
1- Stake ETH to get DAI from Oasis.
2- Swap DAI for LEND, MKR and KNC on Aave.
3- Could even lend out the LEND, MKR and KNC tokens on Aave for a small return but I think that would be pushing it. The risk/reward does not seem to be worth it.

So with steps 1 and 2, I would be long ETH and I get to be long LEND, MKR and KNC without any additional capital needed. Of course the risk is not the same but I think it is an acceptable risk compared to the reward. Defi is booming and its only the very beginning.

I identified the following risks to the strategy:

  • ETH is currently highly correlated to the US financial market. When the major indices crashed in march, the price of ETH crashed with it. I expect the us market to crash again therefore I will need to either wait it out or over collateralize the ETH->DAI loan in order to avoid liquidation in case of a crash in ETH price. Unfortunately this means reducing my DAI considerably therefore my returns on the strategy will be lower.
  • In the case where LEND,MKR and KNC price drops and I want to get my ETH back, I would be unable to repay my ETH->DAI loan and would have to buy DAI to compensate for the loss.
  • Theres the always present risk of a hack on one of the platforms I will be using and losing a part or all of my tokens so im using money I can afford to lose and not rent money. The coins will be held in my hardware wallet, the only place where coins (ETH) will be left with a counterparty is with Oasis. Im not confident enough yet to take step 3 and lend the LEND, MKR and KNC for a small yield as it more than doubles the risk for very little added return.

Has any of you implemented a similar strategy? Did I miss something that I should be aware of?


I agree 100% I just think for a majority of people it will still be about opportunity cost…The rich are still able to risk more to gain more in these early stages… sure there will be the small minority who study and work hard and make their own money, but as far as transferring over from traditional system to crypto I think a lot of decent people will be left in the dust… Luckily people in developing nations will be (potentially) affected less by this as the value of bitcoin etc is much more apparent when your economy is already fucked and the government is blatantly corrupt and trusted less by the everyday citizen… An idea I still find really exciting is travelling to some developing countries and helping them adopt faster :slight_smile: I like the idea of a small investment in a country dealing with hyperinflation or corruption being ACTUALLY life changing, not just ending up as someones new speedboat or car like it more likely will in the western world…


Yep educating people is the best way to fix the problem. Thats why I like what Ivan and the team are doing with the academy.


Amazing but still need to watch this a couple of times and research. It does look like there is a lot of room to build tools for traders so maybe best to focus on that as well. Will post my strategy when I figure this out a little bit more.


I like your strategy I think your down side risk is high as market dip could cause ETH liquidation. Problem with upping collateral with that strategy is that you reduce your LEND, MKR, KNC. Meaning your possible down side is even more so as those positions are smaller.

Watch for this platform You could leverage short ETH with a small amount of funds. If ETH goes up traditionally LEND, MKR and KNC would out perform it so in bull case your probability to out preform DAI I think is really high. On the down side you sell the short to cover the loan. You could probably do something like that with opyn also I just have more to learn about it personally.

Contract risk you could use Nexus mutal or just take the risk of Maker contract. My thought is that currently DeFi relies on DAI so much that if Maker fails short term a lot of ETH bull case does also.


Still will be rich and poor question is can cryptocurrencies create economic equality and efficiency. Remember most people living in the most developed countries in the world experience a higher quality of life then very wealthy did if we step back a few hundred years. If not just 1 hundred years. Hopefully we will see massive increase in quality of life of average person.


A strategy I am using currently is

  • Borrow DAI using Maker
  • Well market is flat collect interest
  • If the Market goes down loan can be repaid or buy ETH to leverage
  • If the Market goes up can withdrawal sell ETH or borrow more DAI.

The purpose of this strategy is market movement is relevant to loan timing. So you can borrow DAI and buy ETH right away but if the market goes down liquidation can happen. If you wait for example 30% pull back you know the market is already down in relation to your original position. I get that you could watch the market for dip then take loan but then you loose the interest from now till -???

I think it a fairly modest strategy. Yield is 8% on the loan as DAI minus TX fees plus 100% of ETH gains or losses.


I guess my overall point is more of the warning depicted in … … while cryptos intentions are good, but once given great power an opportunity a new elite is formed.

I’m one of those annoying crypto ideologists that wants so badly for this new technology to bring an end to the world as we know it… Yeah its great to un-bank banks but what happens when new superpowers are formed? Transparency doesn’t necessarily = equality… The first with the power to innovate will be the new upper class…

You can see it already in the defi space some platforms have hidden certain features/links that existed even months/weeks ago in the standard UI, that would have provided an everyday user more information and enabled access to technologies and onboarding more smoothly, but the mentality still seems to be… if you don’t know yet, its up to you to find out… while I agree with some parts of that it makes me question, do some people really want to un bank everyone? or do they just want to un-bank enough people to add liquidity to their next venture?


I can totally respect the want for Utopian society. Though things like allowing people the option to not have there funds held in fractional reserve. Or just being able to be part of the system at all. I see more risk of exploration coming in the space but also more opportunity for those willing to be educated. My personal experience is most people are totally fine with current system they don’t want to do anything about it. I think we are about to see a great shift in wealth. There is always someone who suffers and who gains during transition. One guy is the DVD rental shop and the other Netflix. All we can really do is educate those who wish to learn.


100% agree I just think those everyday people that are curious enough to explore crypto let alone DeFi deserve more than what they are being offered by most UI’s… It’s like inviting someone into a library and saying research all you want, but half of the books are hidden… I know where they are but I won’t tell you :upside_down_face: especially people in developing countries should have the opportunity to not only gain financial freedom on a local scale but also a global scale… They should have the opportunity to enjoy global financial freedom not just financial freedom within their nations shit coin… How are we supposed to expect less educated people with less access to technology to keep up with our progress and development with all resources available in the western world?