COMO FAZER POOL COM AAVE ? MELHOR ESTRATÉGIA COM EMPRÉSTIMO !!!!

Summary

In this video, the creator shares their strategy for making profits by using the Ave platform, leveraging borrowed funds to invest in a liquidity pool. By borrowing at 5% annual interest, they explain how the pool generates over 1% return in just two days. The video walks through the technical steps of using Ave on the Polygon network, managing risks, and increasing liquidity. The creator also discusses adjusting the strategy based on market fluctuations and offers a detailed walkthrough for viewers interested in similar high-yield strategies. It's a valuable resource for those keen on decentralized finance (DeFi) opportunities.

Takeaways

• 😀 The strategy involves using borrowed funds from the AVE platform to invest in a liquidity pool, generating returns of over 1% in less than two days.
• 😀 AVE is described as the largest lending platform in the market, allowing users to borrow at a 5% annual interest rate and use the funds across different networks, including Polygon.
• 😀 The pool was created using an investment range from 138 to 194, with the current price being 169. This range was based on historical resistance and support levels.
• 😀 The user plans to generate passive returns by holding the position in the liquidity pool, with potential for either 100% exposure to AVE or USD depending on market movements.
• 😀 If the price goes above the set range, the position will be converted entirely into USD, and if the price falls below, it will become entirely in AVE.
• 😀 The user intends to use borrowed funds to increase their AVE supply if the position becomes 100% AVE, betting on future appreciation of the token.
• 😀 The health factor, which indicates the loan-to-value ratio, plays a key role in managing the risk of liquidation. The user monitors this closely.
• 😀 The strategy also involves collecting fees from the liquidity pool and using them to buy more AVE tokens, increasing exposure and enhancing future potential returns.
• 😀 The user is actively adding liquidity to the pool with a mix of AVE and USD (USDC), adjusting positions as required based on market conditions.
• 😀 The user emphasizes that this strategy is not a simple copy-paste but requires careful understanding and management of the risk involved, with potential for high rewards in the long term.

Q & A

What is the main strategy described in the video?

The main strategy involves borrowing USDC at 5% annual interest using the Ave platform, and then using that borrowed capital to participate in a liquidity pool that generates more than 1% return in less than two days.

How does the Ave platform work in this strategy?

The Ave platform allows users to borrow cryptocurrencies like USDC at a low interest rate (5% annually), which can then be used to participate in liquidity pools or other investment strategies to generate returns.

What is the significance of the price range mentioned (138 to 194) in the strategy?

The price range of 138 to 194 was chosen because it aligns with past resistance and support levels on the Ave/USDC chart. The idea is that if the price stays within this range, the strategy will yield returns, while moving out of this range could lead to a change in the strategy.

What happens if the price moves outside the specified range?

If the price moves above the range, the strategy will switch to collecting profits in USDC, while if the price drops below the range, the exposure will shift to Ave, increasing the position in Ave tokens.

Why is the person using borrowed funds for this strategy?

The borrowed funds are used to maximize exposure to liquidity pools without having to invest personal capital. This allows the person to earn returns on borrowed money while managing the loan through the Ave platform.

What does 'factor of health' mean in the context of this strategy?

The 'factor of health' refers to a measure of how much debt is being held relative to the collateral. A higher factor of health means less risk of liquidation. By increasing exposure to Ave tokens, the person can improve this factor.

What happens when the person collects the fees from the liquidity pool?

When the fees are collected, the person uses the profits to buy more Ave tokens, which are then added back into the liquidity pool to increase their position, thereby increasing their factor of health and exposure to Ave.

How does the strategy manage risk associated with borrowing?

Risk is managed by increasing the supply of Ave tokens to maintain a healthy factor of health. This reduces the risk of liquidation and ensures the position remains stable, even if the market fluctuates.

What is the benefit of using Polygon network for transactions in this strategy?

Polygon offers low transaction fees, which allows the person to perform multiple transactions, like collecting fees and swapping tokens, without incurring significant costs.

How does this strategy compare to traditional investments?

This strategy differs from traditional investments as it involves using borrowed funds to participate in high-yield liquidity pools. While it can generate higher returns, it also carries risks related to market fluctuations and the need for active management.