#5. Strategy Guide: Open a leverage farming position using Alpaca and #dev DeFi.
Strategy guide #5
Hi guys, I would like to present a strategy that I’m using to make money from my BNB. I develop this from the previous strategy, I borrow BUSD on #dev then open a leveraged farming position on Alpaca. Please apply at your own risks.
- Collateralized BNB and borrow BUSD on #dev.
I deposited 11.29 BNB into #dev and wait until BNB/BUSD fall to 295, then I borrowed 1,000 BUSD.
- Value-to-collateral ratio = 30%. (suggested ratio)
- Borrow APR = 2.5%.
2. Open a leveraged farming position on Alpaca using VAI-BUSD(PancakeSwap) pool.
When you open a leveraged farming position on VAI-BUSD(PancakeSwap) pool you can only borrow BUSD. So I swap 1,000 BUSD to 1197 VAI.
Deposit VAI to VAI-BUSD pool to open a 4x leveraged farming position.
- Farm APY = 69.4%.
- Debt ratio = 75%.
- Liquidation threshold = 90%.
According to Alpaca, VAI price can drop 30% against BUSD before your position would be in danger of liquidation. So my debt position is pretty save.
Estimate profit = (69.4%-2.5%)*30% = 20.7% / year.
Important Notice:
- All strategies are collected from users of #dev DeFi.
- Each strategy is just a use case of #dev DeFi and not financial advice. Apply these strategies at your own risk.
From:
https://medium.com/@finaltglink/open-a-leverage-farming-position-on-alpaca-a64a3fca4a89
Previous Strategy Guides:
→ #1 Strategy guide: Make 20% profit from BNB https://devdefi.medium.com/1-strategy-guide-to-make-profit-from-bnb-using-dev-defi-6057e92ae51d
→ #2 Strategy guide: Make 15% profit from BUSD https://devdefi.medium.com/2-strategy-guide-reach-15-apy-on-busd-using-dev-defi-d1776a0a3cb8
→ #3 Strategy guide: Open a short position on BNBhttps://devdefi.medium.com/3-strategy-guide-open-a-short-position-using-dev-defi-c7a243e363d4
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