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-🧡 explaining & comparing various ways to make your crypto work to earn you $ πŸ‘‡

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

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


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? πŸ’°

@ 0%: 10x
@ 5%: 12.7x
@ 10%: 16.1x
@ 15%: 20.1x
@ 20%: 24.8x
@ 25%: 30.5x

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! πŸ’Ό

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 πŸ’Έ

With 30% of a $100k portfolio in stablecoins, you could earn:

- $6,000/year @ 20%

- $15,000/year @ 50%

- $30,000/year @ 100%

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. 🀯

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. πŸ’΅

Here are some ways to earn yield on your stablecoins.

For passive, set-it and forget it 20% yield, try @anchor_protocol:

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'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 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'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™₯️ If you want to see more market neutral strategies πŸ‘‡

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) ⏳

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

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.
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%

- 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..

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)

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

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.

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.

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.

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.


The other chains often have better rewards anyway.

For example, you can get 8.29% APY on $BTC on the #Fantom $FTM chain.


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 πŸ‘‡

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

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.

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.

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.

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.

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)

Now let's explore some LP yields:

- $ATOM / $LUNA: 32%
- $ATOM / $OSMO: 100%
- $LUNA / $UST: 60%

- $LUNA / $UST: 60%
- $LUNA / $bLUNA (stable-pair): 25%
- $LUNA / $aUST: 65%
- $LUNA / $ETH: 15%
- $mETH / $bETH: 12%
- $aUST / $UST (stablecoin-pair): 25%

- $FTM / $ETH: 66%
- $FTM / $AVAX: 50%
- $FTM / $USDC: 170%
- $USDC / $MIM / $UST: 25%
- $FTM / $TOMB: 205%
- $FTM / $WBTC: 58%

- $MATIC / $ETH: 20%
- $LINK / $ETH: 40%
- $MATIC / $USDC: $50%
- $ETH / $USDT: 60%
- $MATIC / $AVAX: 20%

- $ETH / $USDC: 60%
- $BTC / $USDT: 30%
- $BNB / $USDT: 40%

- $SOL / $ETH: 24%
- $SOL / $BTC: 12%
- $SOL / $USDC: 50%

- $ETH / $AVAX: 60%
- $BTC / $AVAX: 40%
- $AVAX / $USDC: 60%

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.

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.

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.

❀️ if you want to see this πŸ‘‡

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!

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.

Please also check out these 5 common mistakes people make in #crypto and #DeFi - be safe out there!


If you're in the market for more #DeFi content, I post about this stuff daily.

Here is a 🧡 with my past posts:
If you liked this thread, I'd really appreciate a ❀️ / πŸ’¬ / ♻️ on the original post πŸ‘‡

β€’ β€’ β€’

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More from @shivsakhuja

8 Jan
A lot of people who follow me are new to Crypto or DeFi.

So I'm going to create some more beginner friendly content as well.

This thread covers 5 common DeFi mistakes. πŸ§΅πŸ‘‡

"How to get rekt in #crypto and #DeFi"

Graphics inspired by @visualizevalue

Mistake #1: One egg, one basket

One of the big risks in DeFi is smart contract risk.

This is the risk that a project has a bug or vulnerability in its smart contract such that hackers can exploit it and steal all the $.

Vulnerabilities can be in coins, platforms, wallets or exchanges.

Good projects will have been through smart contract audits, but even audited projects have been exploited before.

It's important to spread your funds out between multiple coins and on multiple platforms.
Read 12 tweets
7 Jan
A few weeks ago, I explained some strategies to earn 200-1000% APY on your $FTM using @tombfinance.

Here's a way to earn 150% APR on your $TOMB, using @TarotFinance and how you can use this strategy to get more $. πŸ‘‡
Steps to lend $TOMB on @TarotFinance:

1. Go to tarot.to
2. Find the $FTM / $TOMB pool
3. Go to the Lend tab
4. Supply $TOMB @ 150% APR
You are basically just lending your $TOMB to those who wish to leverage their LP positions on @TarotFinance by borrowing your $TOMB.

I wrote about this leveraged LP strategy earlier:
Read 6 tweets
6 Jan
What if I told you that you - yes, you - could go and borrow $1M right now?

No KYC, no name, email or phone number.

And you don't even need collateral.

Yes, of course there’s a catch.

This #DeFi instrument is called a Flash Loan - so how does it work? ⚑️ 🧢 πŸ‘‡
1/ A flash loan allows you to borrow money (up to very large amounts) without any collateral

The catch is that you have to return the money in the very same transaction.

Confused? πŸ€” Keep reading…
2/ Here’s how a standard database (web2) transaction works. Let’s say @jack is sending $100 to @elonmusk through a regular bank transfer.

2 things must happen when the money is sent. The bank must update:

1. +$100 for Elon πŸ€‘

2. -$100 for Jack 😒

#1 cannot happen without #2.
Read 16 tweets
3 Jan
~41% APY strategy for #stablecoins on $MATIC (Polygon) network by providing Liquidity between $MAI - $DAI pair.

Here are the steps, pros and risks πŸ‘‡ Image

There are many options for high APY stable yields here (see screenshot)

Steps for $DAI - $MAI LP:

1. Swap 50% of capital for $DAI on @QuickswapDEX

2. Swap other 50% for $MAI

3. Provide liquidity for $DAI - $MAI pair

4. Deposit LP tokens to @beefyfinance (Polygon)



- Stablecoin yield means no impermanent loss

- 44% is a very good yield for stablecoins

- No leverage strategy: There are leveraged strategies with higher APY, but leverage = more risk
Read 9 tweets
2 Jan
Bullish on $LUNA? Want more $LUNA?

Here is a mega-🧡 of all the ways I have found to get more LUNA πŸŒ–

The strategies here include:
β€’ staking (simple, enhanced)
β€’ buying LUNA for cheap
β€’ LP farming
β€’ arbitrage
β€’ leverage
β€’ covered calls

Let's get some more moon tokens! πŸ€‘

The APR / APY in these strategies fluctuates all the time, so you'll have to monitor them to see what the current yields are.

Some are passive, some are active, some require locking tokens for a little bit, others are more liquid.

If you need a primer on the Terra ecosystem, how $LUNA and $UST work, then check out this thread:
Read 19 tweets
31 Dec 21
You asked for a thread on 62% on stablecoins using leveraged LP farming with @TarotFinance...

Well, it's at 75% at the time of writing, for the same amount of leverage! πŸ€‘

Here's how you can use a leveraged LP strategy πŸ‘‡ πŸ‘»

First things first - make sure you understand how leverage works.

See this thread.

Btw, the graphic has a mistake in it on the risk side -- sorry about that! 😬

I uploaded the correct one in the comments!

TL;DR - Leverage is a financial tool to amplify your returns while taking on more risk..

If you want to understand how a LP / AMM works in general, see this thread:
Read 14 tweets

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