Feeling down on #crypto? Put your coins to work.
One way to make the best of a down market is to put your crypto to work to earn $ in a bull or bear market.
No coin left unemployed!
Here's a mega-𧡠explaining & comparing various ways to make your crypto work to earn you $ π
One way to make the best of a down market is to put your crypto to work to earn $ in a bull or bear market.
No coin left unemployed!
Here's a mega-𧡠explaining & comparing various ways to make your crypto work to earn you $ π
1/
This thread (part 1) covers:
- Active & passive ways to make your crypto earn $
- Stablecoin strategies for 20 - 100%
- Overview & comparison of lending, staking and LP farming
- How to understand LPs and mitigate IL
- Expected returns
- Links to detailed guides
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This thread (part 1) covers:
- Active & passive ways to make your crypto earn $
- Stablecoin strategies for 20 - 100%
- Overview & comparison of lending, staking and LP farming
- How to understand LPs and mitigate IL
- Expected returns
- Links to detailed guides
π€
In part 2 (next week), I will cover more advanced ways to earn $ on your crypto - higher risk, higher reward:
- leveraged LPs
- multi-token LPs
- covered calls
- Defi 2.0 / 3.0
- leverage
- bots
- launchpads
- liquidation strategies
π€π€
- leveraged LPs
- multi-token LPs
- covered calls
- Defi 2.0 / 3.0
- leverage
- bots
- launchpads
- liquidation strategies
π€π€
2/
First let's just align on why it's important to put your coins to work earning interest.
Do you believe your bag of shitcoins will 10x in 5 years? π°
@ 0%: 10x
@ 5%: 12.7x
@ 10%: 16.1x
@ 15%: 20.1x
@ 20%: 24.8x
@ 25%: 30.5x
First let's just align on why it's important to put your coins to work earning interest.
Do you believe your bag of shitcoins will 10x in 5 years? π°
@ 0%: 10x
@ 5%: 12.7x
@ 10%: 16.1x
@ 15%: 20.1x
@ 20%: 24.8x
@ 25%: 30.5x
3/
I'm going to explain ways to get 5% - 500% on your crypto depending on your risk and time investment.
Let's give your coins a job and send them off to work! πΌ
I'm going to explain ways to get 5% - 500% on your crypto depending on your risk and time investment.
Let's give your coins a job and send them off to work! πΌ
4/
First, let's talk about #stablecoins.
It doesn't hurt to have some cash on the sidelines. And by cash, I mean stablecoins earning 30 - 40% APY πΈ
With 30% of a $100k portfolio in stablecoins, you could earn:
- $6,000/year @ 20%
- $15,000/year @ 50%
- $30,000/year @ 100%
First, let's talk about #stablecoins.
It doesn't hurt to have some cash on the sidelines. And by cash, I mean stablecoins earning 30 - 40% APY πΈ
With 30% of a $100k portfolio in stablecoins, you could earn:
- $6,000/year @ 20%
- $15,000/year @ 50%
- $30,000/year @ 100%
5/
And yes, there are ways to get 50-100% APY on stablecoins.
Maybe even more depending on your risk appetite.
Without any price exposure to #crypto. π€―
And yes, there are ways to get 50-100% APY on stablecoins.
Maybe even more depending on your risk appetite.
Without any price exposure to #crypto. π€―
6/
Your stablecoin bag won't 10x, but:
- it is a hedge to your crypto position &
- it gives you income & liquid capital that you can deploy into good opportunities. π΅
Your stablecoin bag won't 10x, but:
- it is a hedge to your crypto position &
- it gives you income & liquid capital that you can deploy into good opportunities. π΅
7/
Here are some ways to earn yield on your stablecoins.
For passive, set-it and forget it 20% yield, try @anchor_protocol:
Here are some ways to earn yield on your stablecoins.
For passive, set-it and forget it 20% yield, try @anchor_protocol:
https://twitter.com/shivsakhuja/status/1467550237036187650?s=20
8/
If you want ~40% returns, then try finding a stablecoin liquidity pool with high APY like this:
coindix.com is a great resource.
This is not set & forget.
I explain about liquidity pools later in this thread so keep reading...
If you want ~40% returns, then try finding a stablecoin liquidity pool with high APY like this:
https://twitter.com/shivsakhuja/status/1478065979837988866?s=20
coindix.com is a great resource.
This is not set & forget.
I explain about liquidity pools later in this thread so keep reading...
9/
If you're comfortable with more risk, you can also consider leveraged strategies like the Degenbox strategy for 100%+ APY - @Route2Fi has a great post explaining this.
That's a wrap for stablecoins.
If you're comfortable with more risk, you can also consider leveraged strategies like the Degenbox strategy for 100%+ APY - @Route2Fi has a great post explaining this.
https://twitter.com/Route2FI/status/1458072000602202114?s=20
That's a wrap for stablecoins.
10/
If you enjoy the variance, you can also try a no-loss lottery like @PoolTogether_, which has an expected APR of 25% through daily prizes:
If you enjoy the variance, you can also try a no-loss lottery like @PoolTogether_, which has an expected APR of 25% through daily prizes:
https://twitter.com/shivsakhuja/status/1468981276975656961?s=20
11/
If you're not feeling too bullish on #crypto, you could also go for some high APY market neutral strategies.
They are more complicated, and not as passive, but have very high APY (200%+).
β₯οΈ If you want to see more market neutral strategies π
If you're not feeling too bullish on #crypto, you could also go for some high APY market neutral strategies.
They are more complicated, and not as passive, but have very high APY (200%+).
https://twitter.com/shivsakhuja/status/1472295930023997441?s=20
β₯οΈ If you want to see more market neutral strategies π
12/
For your #crypto #HODL bags, there are 3 basic strategies:
β’ Lending
β’ Staking
β’ Providing Liquidity & Farming
+++
More advanced strategies like leveraged LPs, covered calls, multi-token pools, etc
I'll explain those in part 2 (soon) β³
For your #crypto #HODL bags, there are 3 basic strategies:
β’ Lending
β’ Staking
β’ Providing Liquidity & Farming
+++
More advanced strategies like leveraged LPs, covered calls, multi-token pools, etc
I'll explain those in part 2 (soon) β³
13/
1. Lending
Lending your crypto out to borrowers is a very easy and passive way to earn some moderate yields on your crypto.
Pros of Lending:
- Passive
- Decent yields
- Ease of use
Cons of Lending
- Usually not the best % yield
- Centralized platforms are custodial
1. Lending
Lending your crypto out to borrowers is a very easy and passive way to earn some moderate yields on your crypto.
Pros of Lending:
- Passive
- Decent yields
- Ease of use
Cons of Lending
- Usually not the best % yield
- Centralized platforms are custodial
14/
Where can you lend #crypto?
- Centralized platforms like @CelsiusNetwork, @investvoyager and @Binance are easy to use, passive & user-friendly.
For many, this might be enough, but remember:
These are uninsured custodial wallets & they don't usually offer the best yield.
Where can you lend #crypto?
- Centralized platforms like @CelsiusNetwork, @investvoyager and @Binance are easy to use, passive & user-friendly.
For many, this might be enough, but remember:
These are uninsured custodial wallets & they don't usually offer the best yield.
15/
Here are the APRs offered by @CelsiusNetwork for various #cryptos:
- $BTC: 3-6%
- $ETH: 3-5%
- $ADA: 4%
- $DOT: 9%
- $LUNA: 5%
- $LINK: 3%
- $MATIC: 9%
- $USDC: 8.5%
Here are the APRs offered by @CelsiusNetwork for various #cryptos:
- $BTC: 3-6%
- $ETH: 3-5%
- $ADA: 4%
- $DOT: 9%
- $LUNA: 5%
- $LINK: 3%
- $MATIC: 9%
- $USDC: 8.5%
16/
- DeFi Lending platforms like @AaveAave, @CompoundFinance, @CreamdotFinance, etc
They are also pretty easy to use, and also open-source and non-custodial.
But lending yields are pretty low right now so you'd probably be better off staking imo.
Let's talk about staking..
- DeFi Lending platforms like @AaveAave, @CompoundFinance, @CreamdotFinance, etc
They are also pretty easy to use, and also open-source and non-custodial.
But lending yields are pretty low right now so you'd probably be better off staking imo.
Let's talk about staking..
17/
2. Staking
In a PoS network, validators stake crypto to secure the network, and in return receive a reward.
When you delegate #crypto to these validators, you receive a proportional reward as well (minus the validator's commission)
2. Staking
In a PoS network, validators stake crypto to secure the network, and in return receive a reward.
When you delegate #crypto to these validators, you receive a proportional reward as well (minus the validator's commission)
18/
Pros of staking
- Passive
- Relatively safe
- Relatively stable APR
Cons of staking
- Yields are not huge
- Risk of bad validators (slashing)
- More effort than lending
Pros of staking
- Passive
- Relatively safe
- Relatively stable APR
Cons of staking
- Yields are not huge
- Risk of bad validators (slashing)
- More effort than lending
19/
For clarity, I'm primarily talking about delegating your stake, not actually running a validator node yourself, as that can be significantly more technically complicated.
I will release detailed step-by-step staking guides for various coins in the near future.
For clarity, I'm primarily talking about delegating your stake, not actually running a validator node yourself, as that can be significantly more technically complicated.
I will release detailed step-by-step staking guides for various coins in the near future.
20/
Here are the staking APRs for some major crypto projects:
- $ETH: 5%
- $MATIC: 17%
- $DOT: 14%
- $SOL: 6%
- $FTM: 10%
- $AVAX: 9%
- $LUNA: 7%
- $ATOM: 15%
(not factoring for token inflation)
Data from stakingrewards.com
Rates will vary depending on where you stake.
Here are the staking APRs for some major crypto projects:
- $ETH: 5%
- $MATIC: 17%
- $DOT: 14%
- $SOL: 6%
- $FTM: 10%
- $AVAX: 9%
- $LUNA: 7%
- $ATOM: 15%
(not factoring for token inflation)
Data from stakingrewards.com
Rates will vary depending on where you stake.
21/
As you can see, staking APRs are significantly higher than lending APRs, though still not crazy.
However, staking is a bit more effort as each coin will have its own platform where you would have to stake.
As you can see, staking APRs are significantly higher than lending APRs, though still not crazy.
However, staking is a bit more effort as each coin will have its own platform where you would have to stake.
22/
If you're working with smaller amounts (< a few $1,000) on a chain like $ETH, you could lose a lot in gas fees.
In that case, best to either use a centralized lending platform, or move assets to a cheaper chain like $MATIC, $FTM or $AVAX.
If you're working with smaller amounts (< a few $1,000) on a chain like $ETH, you could lose a lot in gas fees.
In that case, best to either use a centralized lending platform, or move assets to a cheaper chain like $MATIC, $FTM or $AVAX.
https://twitter.com/shivsakhuja/status/1467939603680149505?s=20
23/
The other chains often have better rewards anyway.
For example, you can get 8.29% APY on $BTC on the #Fantom $FTM chain.
The other chains often have better rewards anyway.
For example, you can get 8.29% APY on $BTC on the #Fantom $FTM chain.
https://twitter.com/shivsakhuja/status/1468527329559265280?s=20
24/
3. Providing Liquidity (LP) and Farming
LPs can typically get you significantly higher yields than staking.
Farming those LP tokens can get you even more % APR.
I've explained how Liquidity Pools work before π
3. Providing Liquidity (LP) and Farming
LPs can typically get you significantly higher yields than staking.
Farming those LP tokens can get you even more % APR.
I've explained how Liquidity Pools work before π
https://twitter.com/shivsakhuja/status/1473794498081689601?s=21
25/
Pros of LP-ing:
- High yields
- Farming opportunities
- Self balancing
Cons of LP-ing:
- More complicated
- Requires active management due to fluctuating yields
- Impermanent Loss risk
Pros of LP-ing:
- High yields
- Farming opportunities
- Self balancing
Cons of LP-ing:
- More complicated
- Requires active management due to fluctuating yields
- Impermanent Loss risk
26/
When you provide liquidity, you receive LP tokens that represent your ownership of the LP.
In return for providing liquidity, you get paid a portion of the trading fees proportionally to your ownership of the pool.
When you provide liquidity, you receive LP tokens that represent your ownership of the LP.
In return for providing liquidity, you get paid a portion of the trading fees proportionally to your ownership of the pool.
27/
You could think of an LP as a self-balancing pie of 2 assets.
For example, if you want to maintain a 50-50 ratio between $ETH & $BTC, then you could LP into $BTC / $ETH pool and earn 30%.
The pool with maintain that 50-50 ratio for you, as the prices of BTC & ETH change.
You could think of an LP as a self-balancing pie of 2 assets.
For example, if you want to maintain a 50-50 ratio between $ETH & $BTC, then you could LP into $BTC / $ETH pool and earn 30%.
The pool with maintain that 50-50 ratio for you, as the prices of BTC & ETH change.
28/
But the really high APRs often come from farming these LP tokens.
DEXes will offer very high rewards (often in their own tokens) to those who stake their LP tokens.
But the really high APRs often come from farming these LP tokens.
DEXes will offer very high rewards (often in their own tokens) to those who stake their LP tokens.
29/
An added risk with LP-ing is impermanent loss (IL).
Impermanent loss is the risk that you would be better off holding the coins instead of LP-ing.
Read about IL. Understand IL, but don't let IL scare you off.
Learn how to reduce IL.
An added risk with LP-ing is impermanent loss (IL).
Impermanent loss is the risk that you would be better off holding the coins instead of LP-ing.
Read about IL. Understand IL, but don't let IL scare you off.
Learn how to reduce IL.
https://twitter.com/shivsakhuja/status/1473794513214738434?s=20
30/
You can minimize IL by providing liquidity for pairs of #cryptos that you are bullish on, and that you expect to have correlated price action.
Ex: if you like $ETH and $MATIC, & you believe they will have correlated price action, then consider the ETH / MATIC LP. (~20% APY)
You can minimize IL by providing liquidity for pairs of #cryptos that you are bullish on, and that you expect to have correlated price action.
Ex: if you like $ETH and $MATIC, & you believe they will have correlated price action, then consider the ETH / MATIC LP. (~20% APY)
31/
Now let's explore some LP yields:
Cosmos:
- $ATOM / $LUNA: 32%
- $ATOM / $OSMO: 100%
- $LUNA / $UST: 60%
Luna:
- $LUNA / $UST: 60%
- $LUNA / $bLUNA (stable-pair): 25%
- $LUNA / $aUST: 65%
- $LUNA / $ETH: 15%
- $mETH / $bETH: 12%
- $aUST / $UST (stablecoin-pair): 25%
Now let's explore some LP yields:
Cosmos:
- $ATOM / $LUNA: 32%
- $ATOM / $OSMO: 100%
- $LUNA / $UST: 60%
Luna:
- $LUNA / $UST: 60%
- $LUNA / $bLUNA (stable-pair): 25%
- $LUNA / $aUST: 65%
- $LUNA / $ETH: 15%
- $mETH / $bETH: 12%
- $aUST / $UST (stablecoin-pair): 25%
32/
Fantom:
- $FTM / $ETH: 66%
- $FTM / $AVAX: 50%
- $FTM / $USDC: 170%
- $USDC / $MIM / $UST: 25%
- $FTM / $TOMB: 205%
- $FTM / $WBTC: 58%
Polygon
- $MATIC / $ETH: 20%
- $LINK / $ETH: 40%
- $MATIC / $USDC: $50%
- $ETH / $USDT: 60%
- $MATIC / $AVAX: 20%
Fantom:
- $FTM / $ETH: 66%
- $FTM / $AVAX: 50%
- $FTM / $USDC: 170%
- $USDC / $MIM / $UST: 25%
- $FTM / $TOMB: 205%
- $FTM / $WBTC: 58%
Polygon
- $MATIC / $ETH: 20%
- $LINK / $ETH: 40%
- $MATIC / $USDC: $50%
- $ETH / $USDT: 60%
- $MATIC / $AVAX: 20%
33/
BSC:
- $ETH / $USDC: 60%
- $BTC / $USDT: 30%
- $BNB / $USDT: 40%
Solana:
- $SOL / $ETH: 24%
- $SOL / $BTC: 12%
- $SOL / $USDC: 50%
Avalanche
- $ETH / $AVAX: 60%
- $BTC / $AVAX: 40%
- $AVAX / $USDC: 60%
BSC:
- $ETH / $USDC: 60%
- $BTC / $USDT: 30%
- $BNB / $USDT: 40%
Solana:
- $SOL / $ETH: 24%
- $SOL / $BTC: 12%
- $SOL / $USDC: 50%
Avalanche
- $ETH / $AVAX: 60%
- $BTC / $AVAX: 40%
- $AVAX / $USDC: 60%
34/
Here's what you're getting on your crypto-stable pairs:
- $ETH / $USDC: 85%
- $LUNA / $UST: 70%
- $SOL / $USDC: 40%
- $FTM / $USDC: 170%
- $AVAX / $USDC: 60%
Impermanent loss is expected to be higher for crypto-stable pairs, which is why yields are higher.
Here's what you're getting on your crypto-stable pairs:
- $ETH / $USDC: 85%
- $LUNA / $UST: 70%
- $SOL / $USDC: 40%
- $FTM / $USDC: 170%
- $AVAX / $USDC: 60%
Impermanent loss is expected to be higher for crypto-stable pairs, which is why yields are higher.
35/
As you can see, LP yields are far higher than staking.
LP is an especially good strategy if you expect a sideways market.
coindix.com is a great resource to find the best LP / Farming opportunities.
As you can see, LP yields are far higher than staking.
LP is an especially good strategy if you expect a sideways market.
coindix.com is a great resource to find the best LP / Farming opportunities.
36/
If there's interest, I will also put out a thread comparing sample portfolios with various combinations of these strategies in bull and bear markets.
β€οΈ if you want to see this π
If there's interest, I will also put out a thread comparing sample portfolios with various combinations of these strategies in bull and bear markets.
β€οΈ if you want to see this π
37/
I will post a Part-2 thread soon about various more ways you can earn in #DeFi with higher-risk and higher-reward including:
- Multi-token LPs
- Leveraged LPs
- DeFi 2.0 projects
- DeFi 3.0 projects
- Automated Covered Calls
- Market neutral strategies
+++
Follow along!
I will post a Part-2 thread soon about various more ways you can earn in #DeFi with higher-risk and higher-reward including:
- Multi-token LPs
- Leveraged LPs
- DeFi 2.0 projects
- DeFi 3.0 projects
- Automated Covered Calls
- Market neutral strategies
+++
Follow along!
38/
Remember, there is always risk with #crypto and #DeFi.
Most common risks:
- Price risk
- De-peg risk
- Smart contract risk
- Wallet loss risk
- Admin key / rugpull
I've touched upon these earlier, but will do an in-depth thread too if interested.
Remember, there is always risk with #crypto and #DeFi.
Most common risks:
- Price risk
- De-peg risk
- Smart contract risk
- Wallet loss risk
- Admin key / rugpull
I've touched upon these earlier, but will do an in-depth thread too if interested.
https://twitter.com/shivsakhuja/status/1466552729086562305?s=20
39/
Please also check out these 5 common mistakes people make in #crypto and #DeFi - be safe out there!
Please also check out these 5 common mistakes people make in #crypto and #DeFi - be safe out there!
https://twitter.com/shivsakhuja/status/1479879576427778048?s=20
40/
If you're in the market for more #DeFi content, I post about this stuff daily.
Here is a 𧡠with my past posts:
If you're in the market for more #DeFi content, I post about this stuff daily.
Here is a 𧡠with my past posts:
https://twitter.com/shivsakhuja/status/1470898910218440708?s=20
If you liked this thread, I'd really appreciate a β€οΈ / π¬ / β»οΈ on the original post π
https://twitter.com/shivsakhuja/status/1480336210887249921?s=20
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