#2. Strategy Guide to reach 15% profit from BUSD using #dev DeFi
Hi guys! 👋
The 2nd strategy guide to be introduced is a strategy to make use of BUSD utilization that help you to reach 15% APY and preserve BUSD at the same time by opening a borrowing position on #dev DeFi.
It’s a basic strategy but very effective, without further ado, let’s find out how you can increase your profit from holding a stable coin to 15% per year.
Step 1: The first step is deposit BUSD as collateral to borrow CAKE on #dev DeFi.
Step 2: I borrow CAKE at 20% APR, the loan’s value is 20% of my collateral. 20% is a safe ratio since 50% is maximum loan-to-value ratio on #dev.
Step 3: I use borrowed CAKE to stake on Pancakeswap at 100% APY. My APY from initial BUSD is now 16%.
APY = 20% * (100% — 20%) = 16%
I prefer to pay the borrow interest when my loan-to-value ratio reaches 40% to secure my BUSD from being liquidated.
Each strategy is just a use case of #dev DeFi and not financial advice. Apply these strategies at your own risk.
Previous Strategy Guides:
→ #1 Strategy guide to make 20% profit from BNB: https://devdefi.medium.com/1-strategy-guide-to-make-profit-from-bnb-using-dev-defi-6057e92ae51d