Leveraged Yield Farming (60% on Stablecoins!?)

Summary

In this video, the host explores leveraged yield farming using stablecoins to minimize risk while maximizing returns. They discuss platforms like vfat, which has generated significant profits, and the process of earning 'yield on yield' through multiple liquidity pools. The video also touches on leveraging USDC and utilizing tools like vExtra for enhanced profits. The host highlights their current yield farming strategies, emphasizing the benefits and risks of leverage. Viewers are encouraged to engage, ask questions, and explore new investment strategies, with a link to a related podcast offering daily financial insights.

Takeaways

• 🚜 The video explains leveraged yield farming, with a focus on using stablecoins to minimize risk.
• 💰 The speaker has earned over $2,000 in profit from using vfat and leveraged farming strategies.
• ⚙️ vfat allows for auto-harvest settings, though there is a 1.2% fee for using the platform's services.
• 🎙️ A podcast called 'Defi Bath' has been launched, offering financial and investment education in 5-minute segments.
• 🏅 UIG 4.0 has officially launched, with streamlined features and a new 'Investor Challenge' offering badges for completion.
• 📈 Yield-on-yield farming is highlighted, where profits from yield farming can be reinvested into new pools to compound returns.
• 🤑 The video emphasizes using leverage to amplify earnings, sometimes offering 5x returns on positions like USDC.
• 🔒 10,000 VExtra is required to access higher leverage, obtained by staking Extras.
• 📊 Stablecoins like USDC can yield up to 60%, while riskier assets like Bava can yield up to 2,200%, though with greater risk.
• 💡 Leveraged yield farming offers much higher returns than traditional finance, but comes with higher risk, particularly in volatile assets.

Q & A

What is leveraged yield farming and how is it used in the video?

Leveraged yield farming involves using borrowed funds to increase the size of your farming position, aiming to maximize returns. In the video, the presenter uses stable coins to minimize risk and leverages platforms like vfat and aerodrome to boost returns.

How much profit did the presenter make in the past week from vfat?

The presenter made a profit of $2,248 in USDC in the past week from vfat's yield farming.

What is the 1.2% fee mentioned in the video, and why is the presenter okay with it?

The 1.2% fee is taken by vfat for auto-harvesting the user's yields daily. The presenter is happy to pay this fee as it helps automate profit-taking, saving time and effort.

What is the 'yield on yield' strategy mentioned in the video?

The 'yield on yield' strategy involves taking yields earned from one pool, investing them into another pool, and then lending out the returns again. This creates multiple layers of yield, multiplying profits from the same initial investment.

What is V extra, and why is it necessary in the video?

V extra is obtained by staking extra tokens, and it allows users to take on higher levels of leverage in their yield farming. The presenter mentions that you need 10,000 V extra to access advanced leverage features on the platform.

What are income badges, and how do they work?

Income badges are rewards given to members who achieve specific income milestones, such as $1,000, $5,000, or $10,000 per month. They allow members to identify and engage with others who have achieved similar financial success.

What is the benefit of using stable coins like USDC in leveraged yield farming?

Using stable coins like USDC in leveraged yield farming minimizes the risk of price volatility, as stable coins are pegged to a fixed value, making them a safer option for generating consistent yields.

What advice does the presenter give about using leverage in yield farming?

The presenter advises caution when using leverage, especially with more volatile assets like Bava or OVN, as leverage amplifies both potential gains and losses. They recommend understanding the risks before taking on leverage.

What returns does the presenter mention for various assets in leveraged yield farming?

The presenter mentions various returns, such as 60% on USDC, 75% on ETH, 2,200% on Bava, and 350% on USDC with 4x leverage.

What other platforms or tools does the presenter reference in the video for yield farming?

The presenter references several platforms and tools, including vfat, aerodrome, Uniswap, and the podcast 'The DeFi Bath,' which offers financial strategies and investor education.

Outlines

00:00

📈 Leveraged Yield Farming Strategy with Stable Coins

In this section, the speaker introduces the concept of leveraged yield farming, particularly with stable coins to minimize risk. They reference a profit of $2,248 USDC from vfat and explain how the auto-harvest feature works, including a 1.2% fee. The speaker offers to make more strategy-focused videos based on viewer comments and introduces their podcast, 'DeFi Bath,' which covers various investment strategies and financial education. They also mention updates to their platform UIG 4.0, which has been streamlined with new investor challenges, badges for income levels, and a community for engaging with high-earning members.

05:00

💰 Yield on Yield: Maximize Returns with Multiple Leverage Layers

The speaker dives into an advanced yield farming strategy, explaining 'yield on yield' — a process of reinvesting returns from yield farming into new liquidity pools, compounding earnings across multiple levels. They reference their own profits from vfat, sitting at around $2,248 USDC, and note the availability of leverage on platforms like Aerody Drome. To maximize leverage, users need 10,000 V extra tokens, obtained by staking extras. The speaker explains the steps to use 5x leverage and warns about the potential borrowing limits and risks involved.

⚖️ Managing Leverage Risks in Yield Farming

This section highlights the risks and rewards of using leverage in yield farming. The speaker emphasizes the volatility of certain assets like OVN, which they avoid leveraging due to rapid price movements. They compare returns from USDC and ARROW, achieving 350% returns with 4x leverage, and stress the minimal risk with stablecoin-pegged assets like USDC. They contrast the 60% yields in DeFi with Wall Street's average returns, cautioning that fees must be recouped before realizing net profits. The speaker acknowledges that smaller investors can still leverage positions strategically to amplify their returns.

🔗 Future Plans and How to Get Involved

The speaker wraps up by explaining their intent to move most of their profits from vfat into leveraged yield farming positions, taking advantage of the high returns from stablecoin investments. They encourage viewers to comment if they want more videos on vfat, Aerod, Uniswap, or specific yield farms. The speaker promotes their podcast and a chance to win $500 by leaving a review. They express their readiness to serve the audience with future content and sign off with a friendly goodbye.

Keywords

💡Leverage Yield Farming

Leverage yield farming refers to the practice of borrowing additional funds to increase one's exposure in yield farming, allowing higher potential returns. The video explains that this strategy can be used with stablecoins to minimize risk, while maximizing profits through multiple yield-generating actions. The speaker emphasizes the possibility of generating significant yields, such as the $2,248 profit in USDC that was earned within a week.

💡Stablecoins

Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to a fiat currency, such as USD. In the video, the speaker uses USDC, a USD-backed stablecoin, as a low-risk investment option in their yield farming strategy. Stablecoins are presented as a way to mitigate the risk of price volatility while still earning high yields.

💡vFat

vFat is a yield farming platform that helps users track and optimize their returns from various DeFi (decentralized finance) investments. In the video, vFat is described as a tool used by the speaker to manage profits efficiently through auto-harvesting settings, contributing to the $2,248 earned in one week from USDC farming.

💡Auto Harvest

Auto Harvest refers to an automated feature that allows users to periodically claim their yield farming rewards without manual intervention. In the video, the speaker uses auto-harvesting on the vFat platform to collect daily profits, though they mention that there is a 1.2% fee for this convenience.

💡Yield on Yield

Yield on Yield is a compounding strategy where the returns from yield farming are reinvested into other liquidity pools or lending platforms to generate additional returns. The video illustrates this by explaining how the speaker takes the yield from one pool and reinvests it into another, amplifying their overall profit.

💡Leverage

Leverage in the context of DeFi is the practice of borrowing funds to increase one's position in an investment, amplifying potential gains (and risks). The video details how the speaker uses 5x leverage with USDC and other assets to boost their returns in yield farming. However, they caution about the associated risks, as leverage can magnify losses as well.

💡V Extra

V Extra refers to a type of token or staked asset that grants users access to enhanced leverage opportunities. In the video, the speaker explains that in order to take on higher leverage in their yield farming strategy, they need to stake 10,000 V Extra tokens, which enables them to increase their capital exposure and profits.

💡Liquidity Pool

A liquidity pool is a collection of funds locked in a smart contract that provides liquidity for decentralized exchanges and yield farming protocols. In the video, liquidity pools are where the speaker reinvests their yield, allowing them to earn returns from multiple pools simultaneously, such as using yields from one pool to fund another.

💡USDC

USDC is a stablecoin backed by U.S. dollars and is used in the video as the primary currency for yield farming. The speaker mentions having $2,248 in USDC profits and highlights that USDC, being a stablecoin, offers security against price volatility while still generating a 60% yield when used in leveraged yield farming.

💡Defi Bath

Defi Bath is a daily 5-minute podcast mentioned in the video, designed to provide listeners with insights and strategies related to decentralized finance (DeFi). The speaker introduces it as a resource to help viewers stay informed about new strategies, market trends, and the mindset required for successful DeFi investments.

Highlights

Introduction to leveraged yield farming using stablecoins for minimizing risk.

vFAT has been providing significant profits, with the speaker earning over $2,000 in a week.

The speaker uses USDC, and vFAT allows auto-harvesting with a 1.2% fee, which is considered acceptable for daily profit collection.

The speaker discusses launching a podcast, 'DeFi Bath,' a 5-minute daily podcast focusing on strategies, mindsets, and financial education.

uIG 4.0 has been streamlined for ease of use, reducing confusion with clearer interfaces and new investor challenges.

Income badges are being introduced for users earning between $1,000 to $25,000 per month through the platform.

The concept of 'yield on yield' is introduced, allowing users to generate triple yields by continuously reinvesting profits.

The speaker explains how leveraging USDC provides around 60% returns using platforms like Aerody Drome, with the help of VEXTRA tokens.

5x leverage on USDC allows the speaker to turn $2,000 into $10,000 for greater returns.

The importance of staking 10,000 VEXTRA tokens to access leverage is discussed.

The speaker highlights opportunities for 75% returns on ETH and 2,200% returns on BAVA, though noting increased risk.

The speaker emphasizes the risks associated with using leverage, particularly how it amplifies both gains and losses.

Leveraged positions on stablecoins like USDC are deemed safer, offering consistent returns with minimal risk.

The speaker reveals plans to move most of their earnings from vFAT into leveraged yield farming for higher returns.

The speaker encourages viewers to engage in the comments section for more tailored content and offers a chance to win $500 by subscribing to the podcast.

Transcripts

in today's video we're going to explore

leveraged yield farming we're going to

use stable coins so we're as risk-free

as we possibly can be and we're going to

use the yields and the returns that vfat

has been printing for us I'm probably

sitting on more than $2,000 of profit

this week uh yep

2248

usdc remember in vfat you can go to

harvest you can set up your auto Harvest

settings and I'm in usdc remember they

do take a 1.2% fee but that's a fee I'm

happy to pay to have the platform uh

help me grab profits every single day by

the way before we get too deep into this

and do let me know if you want videos

like this like we can share probably

hundreds of different strategies here on

YouTube just whatever it is you want

leave it in the comments and we'll most

likely make a video around it uh two

quick things the podcast has released

this is the audio experience I will

leave a link in the description or in

the comments just let me know hey I want

access to the podcast 5 minutes per day

we call the defi bath it's going to keep

you plugged into different strategies

different ways of thinking mindset and

really a financial and investor

education to uig 4.0 has officially

launched it's cleaned up there's less

confusion we don't want

members hunting for things forever like

everything's just streamlined everything

is clear plus the new investor challenge

is out where you earn badges as you work

through the challenge final thing we're

working on is income badges we've had

members hit everything from 1,000 a

month to 5,000 a month to 10,000 a month

we had someone doing 25,000 a month in

Fast Track we have someone doing $5,000

per day which I don't know what that is

that's probably 100K that's over 100K

per month wild stuff and that way you

can identify which members are doing how

much and you can have conversation with

them that's going to be super cool back

to leverage yield farming so with vfat

vfat is kicking me out on average about

2 Grand a a week in usdc this is called

yield on yield which by the way also in

the US you can go into the investor

strategies you'll notice we are adding a

bunch from beginner to Advanced but what

we're talking about here is yield on

yield normally I would take my yields

from bat and then I would lend them out

now we're going to do yield on yield on

yield where you can take your yields you

can yield them out into another

liquidity pool and then from that

liquidity pool you can take those yields

and then lend them out now you're

getting triple yield on your initial

investment let me know if you're

following along so far I do want these

videos conversational if something lands

like the video subscribe and please

leave a comment it helps us out a ton

for creating new content so any

questions you have let us know so I've

got the usdc sitting my wallet again

around

2,248 usdc and this dollar usdc is

offering 60% now that does mean taking

on some leverage and borrowing some

money in order to get levered up the

great thing is extra 5 makes that very

very easy to do now what you will need

is 10,000 V extra you get V extra

by staking your extras so if you do plan

on using leverage we've been using

leverage for quite a while that's where

we um 5x our ovn usdc and 5x our Arrow

cuz we were levered up while the price

was surging you will have to stake some

extra to get your V extra once you have

10,000 V extra you can do some really

fancy stuff like dollar usdc $62 million

over on aerody Drome and we can get some

leverage here so I'm going to go farm

now EX also makes it easy because it'll

break things up for you so I can go

2,000 usdc so I'm taking my yield and

I'm going to earn some yield on it and

it'll break it up into dollar and into

um whatever assets I need it broken up

into and then I'll take on 5x ever

leverage of course I have access to this

because I have my 10,000 V extra if you

don't you won't be able to take on as

much leverage as you can see there is

still some borrowing room so I can take

on this leverage sometimes you'll find

that you can't take anymore because it's

maxed out they're at their ization cap

I'm going to go

confirm I am going to allow usdc $2,000

next approve and then I will approve the

transaction and there we go transaction

confirmed so now if I go into my Farms

you'll notice and you'll always notice a

deficit right off the bat don't be

concerned about that that was the price

I had to pay right off the bat to open

up a leverage position but look at this

$10,000 that's wild and again dollar and

usdc the chance of dollar in usdc move

it in value is prettyy much slim to none

now if that interests you and you were

bullish on something or let's just say

there was really clear bullish signs on

an asset you're watching you can get 75%

on eth you can get

2,200 on Bava which some of our clients

are in by the way now again you're

taking on more and more risk here

wouldn't recommend unless you really

know what you're doing and you really

understand Bava but the opportunity is

there uh ovn USD plus

1, 48%

now remember ovn is a lower market cap

I'm all stacked up on vfat with ovn and

I just not willing to take leverage on

ovm because it moves too fast so

remember with leverage you can move

quicker to the upside but it'll also

move quicker to the downside what else

we got usdc arrow 350% with 4X leverage

but again I think this is such a great

example of what we've just done because

it's a stable coin Peg to a stable coin

making

60% running circles around Wall Street

Street all day long I mean think banks

will give you 1% Wall Street might give

you 8% if you're a really Savvy investor

you know maybe you can get to 20 25% for

the average investor we're doing that on

a stable coin all day long now again you

do have to remember I did pay some fees

and so it'll take me a couple days to

recoup those fees but after that I've

got $10,000 working for me and we do see

people sometimes with less Capital

they're able to take leveraged positions

on bets that they've really really

thought through long and hard and

they're willing to take the bet on it

and again they can make four or five

times more because they're taking on

Leverage and they have more Capital at

play and that's that do let me know in

the comments if you want more videos

like that I'm going to be basically

moving most of my earnings from vat now

onto some leverage yield farming

positions I'm also sitting on a bunch of

stable coins just from taking profit

over the last few weeks so I'm going to

deploy it in this leverage position and

enjoy the 50 60% for a while which will

be pretty cool that said if you do want

more videos on on vfat or on any of our

yield Farms on aerod or on Unis swap or

for entering or exiting or any of our

criteria do let me know check out the

podcast do let me know in the comments

we'll make sure we zap you a link you

also have a chance to win $500 just for

being a listener uh subscribing and

leaving a review on the podcast with

that said I'm going to get out of here

let me know if I can serve you in any

other way and with that said we'll see

you in the next video peace