I decided to limit my Binance Smart Chain DEFI exposure to 5% of my crypto assets

18 days ago
3 Min Read
580 Words

I'm now happy with my Binance Smart Chain Defi Exposure...

(Nothing written below is financial advice).

I'm in the following pools on autofarm:

Screenshot 20210215 at 15.34.23.png

And these on Pancake:

Screenshot 20210215 at 15.35.45.png

And my assets are distributed roughly as follows:

  • 30% of assets in the 50% pools - These are BTC/ BNB.
  • 40% of assets in the 100% ish pools - These are stable coins and LTC/ BNB
  • 20% of assets in the crazy 4-500% pools (I couldn't resist) - these are cake/ auto/ wrapped BNB.

And I took out a $700 loan through Venus...

I staked some BTC on Venus to mint $700 of VAI (which is a stable coin) which I swapped for Cake/ AUTO and some BNB - the plan is to pay it back with the AUTO and CAKE I farm.

if it all goes pear-shaped I've got more than enough stable coin staked to Auto I could pull out to pay off the loan at short notice.

Screenshot 20210215 at 15.43.30.png

NB I've ALREADY paid back 5% of this loan thanks to Auto pumping, it's been doing crazy things!

I've only risked a few hundred dollars on the CRAZY Defi-coins

I started off with these DEFI pools and vaults as mainly somewhere to park my stable coins before I cash them out - it's nice to be able to earn ANYTHING on them for a few months or so.

And I then expanded this to 'parking' <5% of my BTC/ LTC in a similar way.

Finally I took out a loan to buy some crazy coin. I am aware that's a bit of a punt for the crazy gains!

NB - I'm yielding around $15 a day ATM through Binance Smart Chain, and that's with 80% 'sensible coins' invested - I classify BNB as a 'sensible' coin, I may be wrong about that!

Keeping an eye on things/ mitigating risk

I'm expecting the gains on display above to come down pretty rapidly over the next week or two, but even if they come down to 30% or even 10% I'm still making something.

NB - the above two projects aren't the real cowboy DEFI projects, although this doesn't mean cowboy coins won't appear on their platforms, but nonetheless I am aware that returns of 100% or more are only going to last as long as the hype bubble lasts.

So I am farming and chasing out CAKE and Auto on a daily basis, even if this means paying a higher percentage of network fees - it's all about risk mitigation!

Having said that I do at least wait until I've made $3 worth of coin per pool before claiming! Otherwise the fees get silly!

BEPSWAP, Thorcain and Leo-DEFI are next...

I've also spent some time today staking to BEPSWAP - with a little Rune but mainly asymmetric staking for now, and to me that feels much more secure and the gains are not too crazy.

I'm going to give it a couple of weeks to make sure I've covered all the transaction fees for staking to autofarm and pancake and then start gradually shifting my DEFI assets over to BEPSWAP, and then later on to Thorcain Main.

And of course as I understand it Leo-Defi is also coming, and I'm DEFO in on that!

I think I'll write about some other stuff besides DEFI in the next couple of days!

Posted Using LeoFinance Beta