Leveraged Yield Farming (60% on Stablecoins!?)
Summary
TLDRIn 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
📈 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.
💰 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.
Mindmap
Keywords
💡Leverage Yield Farming
💡Stablecoins
💡vFat
💡Auto Harvest
💡Yield on Yield
💡Leverage
💡V Extra
💡Liquidity Pool
💡USDC
💡Defi Bath
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
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