🎉 Excited to share some fantastic news! With 2 frens we created a project that tackles the intricacies of leverage strategies in DeFi lending and borrowing.

🔗 Repo - https://github.com/rodriguezmatid/Safe-Looping
🔗 Math & Stats -

🎉 Excited to share some fantastic news! With 2 frens we created a project that tackles the intricacies of leverage strategies in DeFi lending and borrowing.

🔗 Repo - https://github.com/rodriguezmatid/Safe-Looping
🔗 Math & Stats - https://drive.google.com/file/d/1ri0aJM6NtKeQ9-618xtHlU_hgucvGhk8/view

Actuary and quant with experience in copy trading, liquidation, and arbitrage bots for DeFi. Vires in numeris. 🇦🇷

By borrowing and supplying assets, looping enhances exposure but requires a meticulous balance between liquidation risks, interest payments, and maximizing returns.  Our innovations include:

1 - Looping Model: A Python-based framework that determines asset exposure for various looping levels, using LTVs and asset prices.
2 - Weekly Price Variation Prediction Model: This predictive model forecasts weekly price variations.

3 - Historical Liquidation Simulation Model by Loop Level: We simulate a 7-day position to generate risk parameters for different looping levels. This model assesses liquidation risk based on collateralization and historical market conditions like price  and interest rate changes

4 - Expected Return Model: Using data from the price variation prediction model and the historical liquidation model, this model identifies the optimal looping level to maximize weekly expected returns while managing risk.

I had the privilege of participating in this project by developing the necessary code. It was an amazing opportunity to delve into zero-knowledge implementations hands-on and apply financial analysis alongside an incredible team of friends. 🥳

What's this about? Leverage with caution. If you decide to use it, explore our unique method to increase exposure by optimizing manual looping's expected return through on-chain lending protocols! 🧐