Thread by @shivsakhuja

The #DeFi world has lots of legos, that you can plug and play into one another to earn more yield.

Here are a couple of ideas to earn 25-60% on your boring grandpa coins like $BTC and $LINK using the $FTM ecosystem 👇

[1/x]

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If you HODL some grandpa coins as I do, you might feel frustrated that your $BTC & $LINK are just sitting around collecting a measly 5%.

Meanwhile $FTM pools are giving 120%, all while the ecosystem explodes with most coins at ATH.

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So let's get creative. We want still the exposure to BTC, but we want to use it more productively than the 5% we've come to expect.

Say you have 1 BTC ($42,000).

5% yield is $2,100.

Let's try to beat that.

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1. Deposit 1 $BTC into @HundredFinance
2. Borrow 20,000 USDC against that at 2.24% APR

Your LTV is ~47.7%

At ~85% liquidation threshold, you get liquidated if $BTC hits ~$23.5k

Adjust risk to fit. Borrow less to reduce risk or borrow more if it's not degen enough for you.

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Now what do we do with the borrowed funds?

Option A: Stablecoin Farming

1. Invest 20,000 USDC into @CurveFinance 3 stable LP with $MIM / $USDC / $USDT.

2. Deposit LP tokens into @LiquidDriver for 28% APR.

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You are now earning:
= $5,600 / year
= $466.67 / month
= $107.69 / week
= $15.34 / day

(minus $448/year in borrowing costs)

Your effective APR is $5,152 / $42,000 = 12.26%.

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Ok, 12% on $BTC is better than 5%, but we're here for a bit more upside.

Option B: Farm on Beethoven / LQDR

1. Invest 20,000 USDC into @beethoven_x "A Late Quartet" pool composed of $BTC / $ETH / $USDC / $FTM.

2. Deposit LP tokens into @LiquidDriver for 100% APR.

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You are now earning:
= $20,000 / year
= $1,666.67 / month
= $384.61 / week
= $54.79 / day

(minus $448/year in borrowing costs)

Your effective APR is $19,552 / $42,000 = 46.5%.

Stake, sell or compound $LQDR tokens regularly to increase APY.

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Obviously, this strategy is slightly riskier than the stablecoin farming strategy because 75% of your borrowed funds are exposed to crypto now.

But your crypto exposure is to 3 strong coins.

You could also do the same strategy with other @beethoven_x pools.

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To squeeze out some more %, look into borrowing platforms on other chains.

For example, @tranquil_fi allows you to earn 12.08% on $BTC while borrowing $USDT at only 0.32%.

So you could borrow on @tranquil_fi and then bridge the $USDT over from Harmony $ONE to $FTM.

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This means your APR on $BTC from the above strategies is ~25-60%.

These are just a few ideas - there are plenty of ways to creatively use the borrowed funds to generate yield.

Leave a comment below with your ideas.

Don't settle for 5% on your HODL bags..

#WAGMI

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Here are my past threads 👇

https://twitter.com/shivsakhuja/status/1470898910218440708?s=20