Everyone in crypto owns blue chips. But most people let their ETH, BTC, and AVAX sit around.
Make your blue chips work for you and grow your stacks by yield farming.
Hereβs your guide to farming blue chips (ETH, BTC, AVAX, and LUNA).
π§΅π
Make your blue chips work for you and grow your stacks by yield farming.
Hereβs your guide to farming blue chips (ETH, BTC, AVAX, and LUNA).
π§΅π
2. In this guide Iβll cover ways to earn yield on:
β’ ETH
β’ LUNA
β’ AVAX
β’ BTC
β’ ETH
β’ LUNA
β’ AVAX
β’ BTC
3. Ethereum
By running a validator you can earn 6.36% APR + Rocketpool rewards. You only need 16 ETH to setup a validator, which is better than a lot of options.
By running a validator you can earn 6.36% APR + Rocketpool rewards. You only need 16 ETH to setup a validator, which is better than a lot of options.
4. There are a lot of other options for earning yield on Ethereum. Just by staking you can earn ~4% annually. The problem is that you need 32 ETH to stake directly.
@Cov_duk has a great guide on earning yield on Ethereum.
@Cov_duk has a great guide on earning yield on Ethereum.
5. LUNA
By staking LUNA directly you can earn ~8% APY. We can improve on this though.
By staking LUNA directly you can earn ~8% APY. We can improve on this though.
6. On @anchor_protocol you can earn ~19% APY, but you can only do this by depositing UST.
7. We can use our LUNA to take out a loan. Anchor accepts bLUNA as collateral. bLUNA is LUNA that has gone through the bonding process and is now staking.
8. So the steps are:
β’ Stake your LUNA and get bLUNA
β’ Put your bLUNA up for collateral
β’ Borrow UST on Anchor at 60% LTV
β’ Deposit that UST at Anchor to earn 19%
β’ Stake your LUNA and get bLUNA
β’ Put your bLUNA up for collateral
β’ Borrow UST on Anchor at 60% LTV
β’ Deposit that UST at Anchor to earn 19%
9. Say we did this with $1000 of LUNA. This is our collateral.
We borrow $600 and earn 19% on that we are earning $114 interest or 11.4% on our $1000.
We borrow $600 and earn 19% on that we are earning $114 interest or 11.4% on our $1000.
10. Keep in mind that when you put up bLUNA as collateral you forfeit the ~8% staking rewards. So our total yield is 11.4% annually on LUNA.
11. AVAX
By simply staking AVAX you can earn ~7% APY.
But @BenqiFinance has a collaboration with Anchor, where Benqiβs liquid staking token sAVAX can be used for collateral on Anchor.
By simply staking AVAX you can earn ~7% APY.
But @BenqiFinance has a collaboration with Anchor, where Benqiβs liquid staking token sAVAX can be used for collateral on Anchor.
12. The steps are similar to LUNA.
β’ Stake AVAX on @BenqiFinance to receive sAVAX
β’ Use sAVAX as collateral on @anchor_protocol
β’ Deposit borrowed $UST on Anchor for 19% APY
This amounts to an 11.4% yield for AVAX.
β’ Stake AVAX on @BenqiFinance to receive sAVAX
β’ Use sAVAX as collateral on @anchor_protocol
β’ Deposit borrowed $UST on Anchor for 19% APY
This amounts to an 11.4% yield for AVAX.
13. On @CelsiusNetwork you can earn 6.5% APY on Bitcoin. Note that this is only for the first 0.1 BTC.
Celsius is a great option if you donβt have much capital.
Celsius is a great option if you donβt have much capital.
14. The interest rate falls as you deposit more BTC to Celsius, but you still earn a decent amount just for holding your Bitcoin.
15. So those are some ways you can earn yield on your blue chips.
Note that these steps come with risk, like protocol risk. DYOR before you try any of these strategies.
Note that these steps come with risk, like protocol risk. DYOR before you try any of these strategies.
16. Personally, I prioritize reducing risk and maintaining liquidity when it comes to blue chip tokens.
17. Now that youβre a yield farming pro, check out the DeFi Pros:
@thedefiedge @Route2FI @Daryllautk @MilkRoadDaily @Cov_duk @Crypto8Fi @DeFi_educator @redphonecrypto @SmallCapScience @Rewkang @Arthur_0x @divine_economy @rektfoodfarmer
@thedefiedge @Route2FI @Daryllautk @MilkRoadDaily @Cov_duk @Crypto8Fi @DeFi_educator @redphonecrypto @SmallCapScience @Rewkang @Arthur_0x @divine_economy @rektfoodfarmer
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In 3 I'm referring to staking and running a validator on rocketpool. Forgot to mention that.
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