What if you could 2-3x your DeFi yield on stablecoins without using leverage?
Let's say you have $100K
Normally you would get 20% APY = $120K
But why not get 40-60% APY? = $140 - $160K
Too many people are sleeping on free $$$
Let me guide you through it step-by-step
/THREAD
Let's say you have $100K
Normally you would get 20% APY = $120K
But why not get 40-60% APY? = $140 - $160K
Too many people are sleeping on free $$$
Let me guide you through it step-by-step
/THREAD
To understand how this works, we have to say hello to the Terra Ecosystem and their protocols called @anchor_protocol & @mirror_protocol
You can read my full thread about Anchor Protocol here:
Read the thread about Anchor first, then move on👇
1/
You can read my full thread about Anchor Protocol here:
https://twitter.com/Route2FI/status/1442835869879181312?s=20
Read the thread about Anchor first, then move on👇
1/
Now that you understand Anchor Protocol, it's time to learn about Mirror Protocol.
Mirror is a DeFi protocol that enables the creation of synthetic assets called Mirrored Assets (mAssets).
mAssets mimic the price behavior of real-world assets.
Example:
mAMZN, mTSLA, mARKK
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Mirror is a DeFi protocol that enables the creation of synthetic assets called Mirrored Assets (mAssets).
mAssets mimic the price behavior of real-world assets.
Example:
mAMZN, mTSLA, mARKK
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To just give you an example of mTSLA:
You can get 36% APY for just holding mTSLA in Mirror Protocol + the real-life price appreciation.
Imagine if you bought mTSLA when the price was approx. $550 in May (it's $1,077 now).
That's a 98% increase + your 36% APY!
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You can get 36% APY for just holding mTSLA in Mirror Protocol + the real-life price appreciation.
Imagine if you bought mTSLA when the price was approx. $550 in May (it's $1,077 now).
That's a 98% increase + your 36% APY!
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Why would you own real stocks if you can own mirrored stocks and get paid big time for it?
I've sold all of my IRL stocks.
Anyway, let's move on.
Because what we want is to have a safe strategy that gives you great APY whether the mAsset goes up or down in price.
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I've sold all of my IRL stocks.
Anyway, let's move on.
Because what we want is to have a safe strategy that gives you great APY whether the mAsset goes up or down in price.
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So how can you make sure you always win?
Easy.
You go both long and short with equal amounts of money.
This wouldn't work at your stock broker, but let's look at the screenshot below.
If you wanted to go both long and short on Facebook, you would...
5/
Easy.
You go both long and short with equal amounts of money.
This wouldn't work at your stock broker, but let's look at the screenshot below.
If you wanted to go both long and short on Facebook, you would...
5/
just need to buy equal amounts of FB-shares and get a guaranteed return of 30.5% (23% long / 38% short).
In fact, your return will increase to 41% in total and not 30.5% and I'll explain why very soon.
This is a step-by-step thread, so it's about time to guide you through
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In fact, your return will increase to 41% in total and not 30.5% and I'll explain why very soon.
This is a step-by-step thread, so it's about time to guide you through
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So to use this strategy you need $UST.
In this example, I use $100K as the total amount. But it works equally well with $100 in total.
Step 1: Create a Terra wallet: station.terra.money
Step 2: Buy $UST on Kucoin, Coinbase, Uniswap, or via Anchor Protocol
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In this example, I use $100K as the total amount. But it works equally well with $100 in total.
Step 1: Create a Terra wallet: station.terra.money
Step 2: Buy $UST on Kucoin, Coinbase, Uniswap, or via Anchor Protocol
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Step 3: Connect your wallet to Anchor Protocol
Step 4: Deposit 50% of your total in Anchor Protocol, in this example $50,000.
You'll now have 44,444 aUST (equals $50,000 UST since 1 aUST = 1.125 UST).
You'll see why aUST matter soon.
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Step 4: Deposit 50% of your total in Anchor Protocol, in this example $50,000.
You'll now have 44,444 aUST (equals $50,000 UST since 1 aUST = 1.125 UST).
You'll see why aUST matter soon.
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Step 6: Go to Mirror Protocol: terra.mirror.finance and connect your wallet
Step 7: Go to "Farm" and sort with APR. You'll quickly see that mTWTR gives the best total yield at the moment.
However, these rates can vary and what I like to do is to...
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Step 7: Go to "Farm" and sort with APR. You'll quickly see that mTWTR gives the best total yield at the moment.
However, these rates can vary and what I like to do is to...
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check mirrortracker.info/charts/histori…
Here you can see which assets that has a more stable APR.
It's worth mentioning that I myself prefer rather stable assets like big tech stocks and gold/silver due to less volatility.
I stay away from mAssets like RobinHood (mHOOD).
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Here you can see which assets that has a more stable APR.
It's worth mentioning that I myself prefer rather stable assets like big tech stocks and gold/silver due to less volatility.
I stay away from mAssets like RobinHood (mHOOD).
10/
Step 8: Let's pick mTWTR.
We start this strategy by shorting Twitter.
In step 4 you deposited $50,000 into Anchor Protocol which equals 44,444 aUST.
The beauty of this is that you can use your aUST as collateral to short mTWTR instead of using $UST.
11/
We start this strategy by shorting Twitter.
In step 4 you deposited $50,000 into Anchor Protocol which equals 44,444 aUST.
The beauty of this is that you can use your aUST as collateral to short mTWTR instead of using $UST.
11/
In other words we're going to short Twitter which gives you 41% APY!
Set your collateral ratio to 200%. This will give you 461,85 shares of mTWTR.
2 weeks later you'll get back $26,236 UST which you can...
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Set your collateral ratio to 200%. This will give you 461,85 shares of mTWTR.
2 weeks later you'll get back $26,236 UST which you can...
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deposit straight back into Anchor.
So in 2 weeks, you have $50,000 + $26,236 in Anchor working for you (yield upon yield)!
Step 9: You should still have 50,000 $UST in your wallet.
Buy 461.85 mTWTR-shares for $UST here: terra.mirror.finance/trade#buy
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So in 2 weeks, you have $50,000 + $26,236 in Anchor working for you (yield upon yield)!
Step 9: You should still have 50,000 $UST in your wallet.
Buy 461.85 mTWTR-shares for $UST here: terra.mirror.finance/trade#buy
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Congratulations, you're now delta neutral and it doesn't matter if the price goes up/down.
Step 10: But since we already own mTWTR, why not profit some more from it?
Let's enter the long farm for mTWTR to gain some extra APY.
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Step 10: But since we already own mTWTR, why not profit some more from it?
Let's enter the long farm for mTWTR to gain some extra APY.
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Pair your 461.86 mTWTR-shares with 26,328 $UST and click confirm.
For those of you that feel this was too much math, don't fear.
Just enter all the numbers in this calculator and you will get everything you need:
docs.google.com/spreadsheets/d…
Choose "File --> make a copy"
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For those of you that feel this was too much math, don't fear.
Just enter all the numbers in this calculator and you will get everything you need:
docs.google.com/spreadsheets/d…
Choose "File --> make a copy"
/15
To summarize:
1. You have 100,000 $UST
2. 50,000 $UST goes into Anchor (44,444 aUST)
3. 44,444 aUST goes to shorting mTWTR
4. You buy equal amount of mTWTR (approx. 25,000 $UST
5. Your pair your long mTWTR with approx. 25,000 $UST
Let's look at your passive income 👇
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1. You have 100,000 $UST
2. 50,000 $UST goes into Anchor (44,444 aUST)
3. 44,444 aUST goes to shorting mTWTR
4. You buy equal amount of mTWTR (approx. 25,000 $UST
5. Your pair your long mTWTR with approx. 25,000 $UST
Let's look at your passive income 👇
/16
Your first $50K in Anchor earns you 41% since you short mTWTR with these 50K through 44,444 aUST.
The next 50K $UST you'll earn 27%.
This means that you earn (41% + 27% / 2) = 34% APY
After 2 weeks you get back your short sell of $26,236 $UST which means...
17/
The next 50K $UST you'll earn 27%.
This means that you earn (41% + 27% / 2) = 34% APY
After 2 weeks you get back your short sell of $26,236 $UST which means...
17/
that you've spent approx. $75K on this strategy (100K - 26K).
The 26K $UST you get back you just put back into Anchor Protocol and you can repeat what we've just done.
But since the initial capital decreases our yield increases from 34% to 45,33%.
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The 26K $UST you get back you just put back into Anchor Protocol and you can repeat what we've just done.
But since the initial capital decreases our yield increases from 34% to 45,33%.
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If you've made it so far, you're going to be a winner in DeFi.
Maybe it seems complicated, but trust me it's way easier to do this than you think.
You just have to try.
So bookmark this thread and use it when you implement the strategy.
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Maybe it seems complicated, but trust me it's way easier to do this than you think.
You just have to try.
So bookmark this thread and use it when you implement the strategy.
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And to answer a question that I know will come:
"This strategy isn't new" - No, it isn't, but I believe more people should use it. I feel no one is talking about this, and they should.
Btw, you should look for long/short-farms that have over 20% APY. Why?
Because...
20/
"This strategy isn't new" - No, it isn't, but I believe more people should use it. I feel no one is talking about this, and they should.
Btw, you should look for long/short-farms that have over 20% APY. Why?
Because...
20/
if the interest rate is below 20% you're better off with Anchor Protocol alone.
And if you want to do a delta neutral strategy and skip long-farming, just borrow the mAsset instead of buying it.
PS! I have not forgotten you that wait for the aUST-$MIM thread...
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And if you want to do a delta neutral strategy and skip long-farming, just borrow the mAsset instead of buying it.
PS! I have not forgotten you that wait for the aUST-$MIM thread...
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that will give you 160% APY by using leverage. I will update you asap on Twitter with a GIGA-thread!
If you want to know more about this strategy, you can read about it here:
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If you want to know more about this strategy, you can read about it here:
https://twitter.com/Route2FI/status/1450771403490447363?s=20
/22
Thank you so much for your attention, and I hope you find it useful.
Feel free to ask any questions in the comment section.
If you want to keep up to date on DeFi and financial freedom strategies you can subscribe to my free newsletter here:
getrevue.co/profile/route2…
/23
Feel free to ask any questions in the comment section.
If you want to keep up to date on DeFi and financial freedom strategies you can subscribe to my free newsletter here:
getrevue.co/profile/route2…
/23
I also have 2 e-books that you can check out if you'd like:
1. How to get to financial freedom within 5-10 years starting from $0: route2fi.gumroad.com/l/SvwIc/release
2. How to earn money from Twitter and grow at least 1000+ followers per month: route2fi.gumroad.com/l/YeeYF/release
/24
1. How to get to financial freedom within 5-10 years starting from $0: route2fi.gumroad.com/l/SvwIc/release
2. How to earn money from Twitter and grow at least 1000+ followers per month: route2fi.gumroad.com/l/YeeYF/release
/24
If you could help me spread the word by retweeting the first tweet I would be forever grateful 👇
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https://twitter.com/Route2FI/status/1454065822515830787?s=20
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A follow-up thread where I show you how you get 58% APY on stablecoins without leverage:
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https://twitter.com/Route2FI/status/1454519452888969220?t=5BQvwECO_KrREG47oqAEdQ&s=19
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