Become your own hedge fund | Yield Hacking Strategy - Discussion

DeFi 201
#102

Hey @Bdos87, hope you are ok.

In my opinion, i think you are setting you on a hedge position (based on the definition of it, https://www.investopedia.com/articles/optioninvestor/07/hedging-intro.asp).

You are betting your borrow from the CDP to earn from the yield in SNX, what it confuse me a little bit in your strategy (but I think is cleaver enough), if ETH price goes down enough, you lose the vault, but you keep the iETH, any case you lose money, or it could take you even more time to break even.

Carlos Z

#103

I know that we are supposed to be focusing on DeFi within this course but with the rise of staking in CeFi is it bad habit to consider creating a stablecoin in CeFi as a balanced part of your portfolio? Celcius is offering 12% APY on DAI if you are willing to take CEL token as a reward. Getting 12% to hold a stablecoin could create a solid stable base to build on.

#104

Only a suggestion & someone must have suggested the following:
If you gave children in low economic zones, a bitcoin account with 0.000 something in it. Then let these coins grow so in 10 years time that the child can use it to get food, school etc
And pay for health care
Also the kids can earn new coins by learning on-line etc
And also the coins could be vaulted to help build local support for the next kids below them?
If this has been done please let me knowā€¦

Update ā€¦now listed on https://eventornado.com/event/defi-connected#idea

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#105

Acorns Finance

I think itā€™s only fiat, though, and US-based. Something to build off of, perhaps.

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#106

Thank you for telling me. I recall in the past looking at patents for childrenā€™s money systems controlled by parents. It would be cool if UN helped created digital wallet for low economic zones to help kids etc

#107

#vido Talk on fintech cypto etc by

  • Jim Cunha, Senior Vice President, Secure Payments and FinTech at the Boston Fed,
  • Dr Thomas Moser, alternate member of the governing body, at the Swiss National Bank, and
  • Prof. Massimo Buonomo, former UN Global expert in blockchain, cryptocurrencies, CBDCs and AI. https://youtu.be/eKfr5J2wUWQ
#108

great course thank you amadeo!

Anyone know if there is a FURUCOMBO Clone that works with BSC?

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#109

I think there is none yet, keep me posted if you find a clone or a bridge to BSC. I think FURUCOMBO supports Polygon as well

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#110

I confess Iā€™ve been lurking racing through the courses without contributing. Here is my contribution to this discussion of yield hacking. Personally, just not trading on eth could be a yield hacking strategy :slight_smile: you will save tons using a layer 2. Optimisim is a layer 2 that is new and inexpensive. But if the yields must be earned on eth and I had time, buying ampleforth for $.80 or less and waiting for a rebalance closer to a dollar is an easy one. The price fluctuations could possibly be used as a hedge against more volatile assetsā€¦so you could have a strategy consisting of three to five tokens (a mix of small, medium, and large caps) and buy Ampleforth when its reasonably lower than a dollar wait for a price increase and then swap that Ampleforth into whichever is the worst performing asset of the three to five tokens you chose earlier. If you made good picks on the tokens chances are it will rebound and yield some profits. Then just keep buying the worst performing token of the five until Ample drops again and repeat the process. It could take some time but it could work and you might even be able to program a bot to do it.

Not financial advice :slight_smile:

#111

Great course, nice explanation and point of view on DeFi.
I personally try to learn other things and it is not my priority to be in DeFi protocols in daily, weekly basisā€¦ So I tried to find stable yield and leave my funds there. There exists some projects where the platform is CeFi but yield is working at the background through DeFi, with relatively stable yields. It is called yieldapp. It works for me, but for others who like to search and study more those yields in DeFi forest, I am sure it is able to find higher yields.
:grinning:

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#112

The Furucombo app blew my mind, thanks for showing that Amadeo as I had no idea there were Defi apps that allowed non coders like myself to drag and drop prewritten code from these cubes. Had fun playing with them for a bit but was not able to come up with any arbitrage opportunities worth executing. I will dig into this even more and see what I can come up with. A question I have is how do I know the code in each cube will execute correctly? Has any of it been audited to establish its accuracy?

#113

super interesting stuff and am very excited to get involved. I see my strategy as using arbitrage as a way to buy other assets off chain, yield hacking as a way to grow an investment quickly by taking profits and then putting them into more stable yields, or provide liquidity.

#114

I tried out https://zapper.fi/invest, but unfortunately, the Fee APR column did not properly sort the APRs in numerical order (even when clicking the column heading multiple times). There are 134 pages of pools, so itā€™s not worth my time to scroll through them all manually. Btw I wonder why it only has Uniswap v2 but not v3.

Tokenviz.io says ā€œ404 page not foundā€. Does it work for anyone else?

The tokenbryce article recommends https://idle.finance/#/ for stablecoin yield hacking. Is this safe, and has anyone used it successfully?

#115

Been a while now since the last post in this section.

Welcome to 2022. DeFi today at $83b.

Going to study Furucumbo as arbitrage sounds very good when you have a bit of more capital to risk.
I will take it slow. Defi is so fast, and everyone wants to get your money and one is good to be present and uninfluenced of the ups and downs.

My defi strategy atm I am in several high yield apy projects and make more $crypto than from any of my jobs daily, so that is a good place I feel at. Is risky and am alright with that.
That profit goes right back into new projects or strategiesā€¦
I am also a miner and I learn programming. Ye :smiley:
So good luck to all of us out there :sunglasses: :vulcan_salute:

And on to next section flash loans!

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#116

not working, no. some other links also not anymore. defi so fast. Looking forward to a new defi 201 course for sure :slight_smile:

#118

The best yield hacking strategy Iā€™ve used so far is simple passive income on my USDC stablecoins on the BlockFi protocol. Although itā€™s a centralized app and has been subject to some SEC regulation so far (where Iā€™m also well aware of the risk), Iā€™m able to safely deposit my USDC into an interest account where I earn a 7.5% yield. Each month, the app pays you out in the same coin you lend and sends you a statement regarding your earnings. The app is not only limited to stablecoins either, there are many crypto coin yield offerings. The SEC has already made a move on all lending platforms this year, but I think a little more regulation in the space will actually benefit it to get the SEC out of the way. If these apps like BlockFi and Celsius end up offering a lot lower rates due to regulation, then thatā€™s when Iā€™ll switch fully to DeFi lending. Iā€™ve played around a little on DeFiRate to compare my options, and a lending opportunity Iā€™ve been considering is earning a DAI yield of 6.7% on the decentralized lending/margin trading platform Fulcrum.

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#119

Ever since i heard yield described as paying for the opportunity cost of anotherā€™s funds, Iā€™ve thought that yield sounded like a ponzi scheme (Andrey pointed this out indirectly when he noticed that the first thing crypto developers try to do in their escape of traditional finance is rent-seek), but I now think that the Ponzi scheme is acceptable if its growth rate is manageable, e.g. if the rate of growth of the ponzi resources is slightly underneath the rate of growth of GDP or population or ā€¦ etc, i.e. the ponzi output value > ponzi input value. Unfortunately, growth rates like those can vary quite widely just by taking a different frame of reference (e.g. population of a country versus that of just a county)ā€¦

my input to this discussion is that any yield hacking strategy might offer more value than it removes from the system when it is applied in a context of all rational agents pursuing such a strategy, i.e. a personal-turned-crowd strategy that depletes resources is not a sustainable yield-hacking strategy and as such may be safely allowed only by subpopulations (hopefully not any ā€œeliteā€!); some subpopulations are more defensible, e.g. yield-hacking using personal resources, and some are less so, e.g. yield-hacking using resources siphoned from other communities without their consent.

very idealistic, i know (maybe very poorly explained too? i hope not, but am willing to discuss!), but iā€™m more about ensuring opportunities that cost too much for most people are not assumed to be better.

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#120

June 2022:
i have never used a yield hacking before I started my journey on DeFI:
to be clear I never invested in Ethereum Maker or Aave, or Compound
I found better gas fees in the Binance Chain:
i started small with pancake swap:
I learned about swapping tokens
Binance: by BNB transfer from binance exchange to BSC wallet (metamask)
swap BNB to cake:
there were two yield I tried:
30% cake 70% APY ; it was all good until Jun2021 :face_with_head_bandage:
(first phase manual compound, then added the feature of automated compound)
Liquidity Pools
BNB-cake LP (create my first LP) 30%
i took me 15 days to figure it out where to find my LP in the blockchain.

Avalanche:
TradeJoe stack ZJoe 34% APY flexible rates (not compounding_
I also used YieldYak or Bifi finance for Compounding

i found better stablecoin pairs in LP for Yield (mostly USDC)

i may try maker or aave or crv later when Eth gas fees get cheaper.
i noticed that Curve, Lido, Compund, Aave are still with high TVL (value in $Billions)
my first rule is:
first understand the tokenomics; check inflation (release of new tokens how often)
see the APY rates and compounding
1st invest in single assets (no LP unless is a stable pair)
DeFi Llama Yield and TVL details

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#121

Its January 2023, and everything is very different. I love this ideas about becoming your own bank, but there being lot of protocols imply a lot learning about. I really like the idea of the flash loans and would like to dominate them. I found a long time ago, Convex finance. I encourage you looking it up. It is a yield hacking strategy if you know how to use it