Thread by @spice_finance

Why are you, as a yield farming maxi, not optimizing your NFT lending? 🤔

This is the ULTIMATE 🅱️LENDING GUIDE for @blur_io 🧵

🔑 What APY & LTV to bid
🔑 Farm Blur Points
🔑 Lock-in high ETH yield

*From one of the most efficient Point & ETH lenders on Blend*

(RT & Bookmark)

First, let's review how to earn Blur Points:

> Place competitive bids 🎯 - Blur scales Point rewards based on the probability that the bid is hit.

BUT

> Avoid getting hit 🚨 - Blur halts Point rewards when a bid is hit, causing a loss of X pts/day from what you were earning.

After 300+ hours of 🅱️lending, here is the process that we’ve used to compete:

> Look at the APY / LTV playing field of bids, loans and auctions for the collection you wish to lend against
> Determine optimal regions on that playing field for lending
> Lend in those regions

For each NFT collection on Blend, there are usually four distinct LTV regions:

1️⃣ Point Maxxing Plains 🏞️
2️⃣ Down Bad Valley 🏜️
3️⃣ Goldilocks Dunes 🌅
4️⃣ Death Zone ☠️

Confused? Read further 👇

1️⃣ Point Maxxing Plains 🏞️ - LTV range between lowest competitive bid and the beginning of the Down Bad Valley 🏜️

GOOD for lending ✅

Goal: Farm Blur Points

Place bids with:
APY = 0%
LTV = Any % within this Region

Why?

> Here, loans are settled at 0% APY. To earn Points, you must also bid at 0% APY.
> Because your bids sit at LTVs below the loan & auction dense Down Bad Valley 🏜️, your bids can safely farm Points while those higher LTV loans get hit from constantly recycling auctions.

🚨 NOTE: The transition LTV between the Point Maxxing Plains 🏞️ and the Down Bad Valley 🏜️ depends on the liquidity of loan offers there, but Blur doesn't show this. To see it, you need significant technical infrastructure.

Our upcoming Blur Vault WILL incorporate this data.

2️⃣ Down Bad Valley 🏜️ - LTV range of the dense region of loans and auctions

TERRIBLE for lending or farming ❌

Goal: Avoid this Region

Why?

> The odds of your bid getting hit are increased because auctions occur frequently
> The mediocre APY you get rarely outweighs the points you could be farming with your ETH elsewhere
> Constant auctions slowly eat away your ETH balance due to gas spend

3️⃣ Goldilocks Dunes 🌅 - LTV range between the end of loan and auction dense region and your max LTV threshold

GREAT for lending ✅

Goal: Farm ETH yield and Blur Points

Place bids with:
APY = slightly undercut (<1%) or the same as the best offer
LTV = Any % within this Region

Why?

> By bidding competitively, we’ve found that you maximize the number of Points Blur gives you while also maximizing the APY you get in the case your bid does get hit
> Hit rates are low which is decent for point farming

4️⃣ Death Zone ☠️ - LTV range above your max LTV threshold

BAD for lending ❌

Goal: Avoid this Region

Why?

> The r/r profile for these loans is always negative no matter the APY.
> See our previous Blend thread for more context

https://twitter.com/spice_finance/status/1664303322927357958?s=20

Takeaways:

> Farm Points in Region 1️⃣ and lock in attractive loans (30-90% APY, low to zero risk) in Region 3️⃣
> Avoid Region 2️⃣ where there are many loans and Region 4️⃣ where r/r is negative

Don’t want to do this yourself but want Blur Points and yield? 👇

> Join discord.gg/spicefinance
> Follow @spice_finance & turn on notifs
> Sign up spicefi.xyz

... for EARLY ACCESS to SPICE's Blend Blur Point Farming-as-a-Service Vault

📢 Disclaimer: Always conduct research yourself. #NFA #DYOR

Tagging for visibility:
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