Thread by @resdegen

COMPILATION | BEST DELTA NEUTRAL & STABLECOIN STRATEGIES ON #DeFi 🏦💵

I'll be compiling here the best passive strategies on #crypto with the challenge of beating the 19.5% APY obtained with $UST on @anchor_protocol

Please feel free to add the ones you use!

1/x 🧵

What is delta neutral?

📔 It's a strategy utilizing multiple positions with balancing positive & negative deltas so that the overall delta of the assets in question totals zero

In other words: you are not affected by the direction of the asset and always get an interest

2/x

Given this definition, I'll also include stablecoin strategies since you are not subject to volatility and aren't affected by the market direction

Example: earn some interest by lending $USDC

Remember: the goal is to earn passive income while keeping the value of your bag

3/x

Why this goal of beating $UST on anchor?

- Because u get ~20% APY which is sufficiently high
- You don't need to constantly monitor your position since the APY is stable regardless of market conditions

Of course, there're risks w/ $UST & $LUNA (I'll let you look for those)

4/x

⚠️ There are risks in #DeFi and these strategies are not an exception

You also need to monitor your positions since:
- Some of them will include borrowing money
- APY might change and underperform the 20% goal

Let's start 👇

5/x

STRATEGY 1⃣

Chain: #Avalanche
App: @AlphaFinanceLab V2
Type: Yield Farming
APY: 34%

Supply $USDC + $USDC.e & borrow. Repeat. App does the loops for u. You increase your collateral & therefore u can keep borrowing against

Risks: Liquidation (low, since it's a stablecoin LP)

STRATEGY 2⃣

Chain: #Avalanche
App: @AlphaFinanceLab V2
Type: Lending
APY: 37%

Lend $UST so that users can borrow to leverage their $AVAX - $UST pools on the platform

Risks: low (no IL, no liquidation risk). Highly volatile APY

* IL: Impermanent loss

STRATEGY 3⃣

Chain: #Oasis $ROSE
App: @ValleySwap
Type: LP
APR: 27%

Provide $USDC - $USDT

*Rewards are paid in $VC tokens (farming token)