My goal for this cycle is to transition some of my volatile crypto assets into a DeFi "fixed" income portfolio. Generating enough "passive" investment income to cover my expenses is an opportunity too good to ignore.
"Fixed" and "Passive" are in quotes because neither is true ~ LOL. The APY's fluctuate wildly and I've spent weeks digging into each of these projects. But playing in the DeFi sandbox is the ultimate brain food and a great project for while we wait to see what Elon tweetsnext. I hope to write a monster guide to DeFi similar to The Bitcoin Rabbit Hole breaking it all down.
For the past 2 years, I've mainly stuck to CeFi like Nexo and BlockFi. DeFi protocols are pretty new and until last week hadn't been stress tested through a deep dip. There were a few blips, like some stable coins momentarily losing their peg, monster gas fees and tons of liquidations from over leveraged traders, but when the dust settled the cryptoverse continued on, now battle tested and stronger than ever.
So this week I pulled the trigger and rolled out V1 of my stable coin farm which is 35% CeFi and 65% DeFi. 85% USDC and 15% UST. I like USDC since I can instantly convert between USDC and USD for free in Coinbase Pro. This is important since the entire point of this portfolio is to harvest income I can actually spend IRL. Hopefully crypto.com enables 1:1 USDC top ups for their debit card soon, then I'd never need fiat dollarz again.
Here's the breakdown. Overall it's yielding 18.45%, which fluctuates a lot, but hopefully diversifying helps smooth it out:
The game plan is to evaluate and swap out underperforming positions on the 1st of each month and "harvest" income from each position quarterly. Here's a quick and dirty breakdown on each project:
My next steps are to:
Now you have plenty of stuff to play with :) Take it slow and hit reply or hop into the #yield-farming channel in the BitLift Discord if you have any questions ;)
To the moon 🚀 — @GΞR฿Z Founder & Creator @ BitLift
Bitcoin Status Update
Bitcoin's chart certainly isn't looking great. The 50 day moving average is sloping down pretty hard and looks like it wants to cross the 200 day. Otherwise known as a golden cross.
On the plus side, this happened halfway through the 2013 bull run and we gained another 1,700%+ before the party was over. Continuing to make higher lows (the sloping line up) still gives hope for a recovery. Unless of course Elon tweets this.
Tweet of the Week
All year I've been exploring ways to monetize my Stable Coin Lock-In Theory. The best way I've found is with Curve, the Uniswap of stable coins. Thing is, Curve is confusing as f*k.
Luckily, just around the time I figured out how to stake with Curve, Convex launched and has been a monster out the gate. I'm earning ~19% on my stable coins and ~150% on my CRV with Convex.