Alex eth null pfp
Alex eth null
@almch-eth
How to passively and market-neutral earn 25%+ per annum in crypto? Today there will be a complex technical post for non-crypto users, but this is part of our fund's strategy and I want to share these tools with you #cases What did we do to ensure profitability? Step 1. We take a conditional 3,000 USDC, contribute to the Morpho lending protocol in the Base network. We borrow ETH in the amount of 2,000 USD. The liquidation threshold in this case is when ETH grows by 20%. The loan rate is only 0.03% per annum + we receive Morpho tokens, which we can sell at the listing. Morpho is a decentralized p2p lending protocol on Ethereum and Base L2. Invested: $69,300,000. Investors: a16z, Coinbase Ventures, Pantera Capital and others. Tier-1 protocol.
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Alex eth null pfp
Alex eth null
@almch-eth
Step 2. We bring ETH to Contago. We open a leveraged position in the cbETH/ETH pair with x10 leverage. The platform has a higher yield in the ezETH/ETH pair, but the ezETH wrapper is riskier and has already been subject to deposit. Contango is an automatic looping protocol. Invested: $4,000,000. Investors: Coinbase Ventures, The Spartan Group and others. TVL: $40 million. Tier-3 protocol. During the test period: ā€“ October 4, we deposited 0.73 ETH ā€“ October 30, we withdrew 0.74 ETH Final calculation of the yield on the position: On ETH, we received 1.62% per month or 19.4% per annum. Taking into account the USDC loan, we get 12.9% per annum. In addition, in this strategy, we also claim rewards from the projects: - Base (no token yet) - Morpho (no token yet) - Contango (* they have already announced incentives for early users, farming rewards is not relevant)
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Alex eth null pfp
Alex eth null
@almch-eth
The rewards of each project can be from 5% to 70% (in an ideal scenario) of the contributed amount for the farming period (not even annual), which greatly increases the leverage of profitability. What are the main difficulties? - selection and development of a farming strategy to increase the efficiency of capital - tracking the price of ETH to avoid liquidations - using 5-10+ similar strategies for capital for the purpose of diversification across different protocols. Small profitability, you say? Big or small - depends on your capital, trust me šŸ˜‰ Mark yourself as a unicorn if you understood at least something šŸ¦„
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