DeFi is very powerful. Optimal way to generate the highest returns in 2021.

[Deleted member 1333509]

A lot of people will be focused on which cryptos to invest into this year to make good returns, trading is another favourite obvs.

But yield farming is mind blowingly powerful. The returns that can be made on LP'ing over the next 10 months absolutely dwarf the returns you'll get from picking a good crypto and getting 10X.

This happens because of a few factors:

- you generate the normal profits you would anyway on the principle, but then also generate additional cryptocurrency which then also generates returns.
- you can occasionally re-stake the crypto you earn to then be earning returns on the returns you're earning from your principle.
- the impact of compounding on long term profitability is pretty staggering. I've been running simulations for the last few days to find the optimal compound times (ie. hourly vs bihourly vs daily vs weekly) and the increase in total ROI can be 5X just by compounding.
- there are very high yields available if you search hard that are not any more risky than buying the crypto normally and they are for some of the most trusted cryptos in the market, although lesser know cryptos do tend to have higher yields.

I have some capital testing a 700% APY yield strat, and some other capital testing a 500% ROI per month strat (yes, you read that correctly) that is complicated and more risky than normal imo, but for those kinds of returns, worth exploration.

Spend time looking at the different platforms and seeing what they each offer and how they interlink. Explore new platforms people aren't paying attention to. Don't just accept lower returns because "how could that be possible".. first-hand, it is. DeFi is more powerful than any other area of, not just cryptocurrency, but technology as a whole with regards to the generation of wealth. 2021 is a golden opportunity, smart risks = success.

This is something I just sent to someone that was asking for advice. This is a basic explanation of "impermanent loss" and you should read this before providing liquidity into a trading pool with two or more assets:


"From the time you start staking until the time you stop staking, if both assets increase/decrease the exact same amount of % you will have no impermanent loss. But if one gains more than the other, you will lose some of the amount you should have gotten back.

Now, if you are earning a huge amount of yield, that might cover IL, so it's worth it anyway. But you can lose 20%+ if, for example, one asset moons and the other one stays still.

Note as well, you don't lose from profit, you lose total return amount - so you can actually get back less than you started with!"

 

[BrandingCat]

Umbrella
Polkamarkets

Thanks me later.

 

[KaleidoJack]

There are reports of a few DeFi scams already. Users give their crypto assets to these groups who promise to x% returns with DeFi, but a few months later these groups are wiped out of the face of earth and take all the crypto with them. So I'll be careful with DeFi for now. I'll keep an eye on it, though, because I agree this movement has a lot of potential!

 

[Scorpion Ghost]

Umbrella
Polkamarkets

Thanks me later.

These make me rich?

 

[Brickbat1]

I am stilk trying to get the hang if this Defi stuff.. Any pointers for newbies?

 

[sfnet]

Yeah how do you get started as a newbie?

 

[Deleted member 1333509]

There are reports of a few DeFi scams already.

There are bazillions actually, it's pretty crazy how many scams/"rug pulls" there have been and are still operating right now.

They're obvious though imo. Like anything with crypto - sticking to well respected platforms/tools is worth losing a little bit of ROI compared to going for unknown platforms promising higher returns.

I am stilk trying to get the hang if this Defi stuff.. Any pointers for newbies?

Yeah how do you get started as a newbie?

Watch YT channels like Coin Bureau and DeFi Weekly.. bear in mind that everything's moving so fast that you have to learn fast as well. If you actually want to understand DeFi in time to make decent money then absorbing yourself in it helps quite a bit (watching videos while eating food, whenever you need a break etc)

The basic idea is instead of just buying cryptos and holding them, then selling (ideally) at a higher price later this year, you buy cryptos, provide liquidity to decentralized trading pools or lending protocols with them and then as well as making the same profit you'll make by holding which you would have made anyway, you also earn yield - basically more free tokens, for providing liq.

You can shop around for the best combo of potential investment return + potential yield return.. ie. a crypto might give you 200%APY by LP'ing, but it might not have a lot of potential to generate profit from gains later this year... so another crypto that is only giving 160% might be a better long term option overall based on it's likelihood of doing 10X +.

There's nothing scammy about the fundamentals of how you're able to earn 200%+ APY either - when I first started I thought it was impossible because where does that yield come from?

It comes from a range of things, but often a combo of trading fees and new tokens being created by the protocol and given to LP's.

Certainly worth looking into if you haven't already. With $xx,xxx - $xxx,xxx there's the real potential to create permanent life-changing wealth over the next 10 months, and even with lower investments you'll still make significantly more than the vast majority of straight crypto investments.

As a rule of thumb, I believe that 30X+ returns with DeFi over the next 10 months are not only possible, but possible in a number of different ways, with some options leading to ROI's that are quite a bit more than that (and this is factoring in about a 5X increase in the price of the principle. Stake with anything that does 10X in the next 10 months and you can adjust the overall ROI accordingly).

 

[joshgarbinson]

Staking's likely to get even bigger with Eth 2.0, but I'm skeptical with the majority of other cryptos.

 

[Sandman_]

Any advice on what platform to use ?

let’s assume I have 5k to invest.

 

[Deleted member 1333509]

Staking's likely to get even bigger with Eth 2.0, but I'm skeptical with the majority of other cryptos.

Absolutely, it's going to be huge. That's a really big understatement actually.

Any advice on what platform to use ?

There's good opportunities on all platforms - some have better than others, but there's no shortage of safe, solid LP ops if you you search for them fairly meticulously.

 

[Brickbat1]

There are bazillions actually, it's pretty crazy how many scams/"rug pulls" there have been and are still operating right now.

They're obvious though imo. Like anything with crypto - sticking to well respected platforms/tools is worth losing a little bit of ROI compared to going for unknown platforms promising higher returns.



Watch YT channels like Coin Bureau and DeFi Weekly.. bear in mind that everything's moving so fast that you have to learn fast as well. If you actually want to understand DeFi in time to make decent money then absorbing yourself in it helps quite a bit (watching videos while eating food, whenever you need a break etc)

The basic idea is instead of just buying cryptos and holding them, then selling (ideally) at a higher price later this year, you buy cryptos, provide liquidity to decentralized trading pools or lending protocols with them and then as well as making the same profit you'll make by holding which you would have made anyway, you also earn yield - basically more free tokens, for providing liq.

You can shop around for the best combo of potential investment return + potential yield return.. ie. a crypto might give you 200%APY by LP'ing, but it might not have a lot of potential to generate profit from gains later this year... so another crypto that is only giving 160% might be a better long term option overall based on it's likelihood of doing 10X +.

There's nothing scammy about the fundamentals of how you're able to earn 200%+ APY either - when I first started I thought it was impossible because where does that yield come from?

It comes from a range of things, but often a combo of trading fees and new tokens being created by the protocol and given to LP's.

Certainly worth looking into if you haven't already. With $xx,xxx - $xxx,xxx there's the real potential to create permanent life-changing wealth over the next 10 months, and even with lower investments you'll still make significantly more than the vast majority of straight crypto investments.

As a rule of thumb, I believe that 30X+ returns with DeFi over the next 10 months are not only possible, but possible in a number of different ways, with some options leading to ROI's that are quite a bit more than that (and this is factoring in about a 5X increase in the price of the principle. Stake with anything that does 10X in the next 10 months and you can adjust the overall ROI accordingly).

So Defi is what the platforms call staking right?

 

[Deleted member 1333509]

So Defi is what the platforms call staking right?

That’s right.. staking and liquidity providing are interchangeable.

On any of the big platforms like Binance and Crypto.com that are offering staking, the liquidity they’re getting is just being pushed to DeFi platforms like Curve or Uniswap (well Binance isn’t using them because they’re growing their own DeFi network (nudge nudge wink wink))

 

[Kambaggo]

Do you go for fixed or flexible options when staking?

 

[Kambaggo]

And where do you get these huge returns from? I am looking at Binance earn and they just give X% or XX% interest?

 

[cerebration]

Mine ETH, stake it, re-stake what you earned from staking, thank me later.

 

[BrandingCat]

These make me rich?

It will make you a mutant Scorpion ghost.

 

[benkingldn]

A lot of people will be focused on which cryptos to invest into this year to make good returns, trading is another favourite obvs.

But yield farming is mind blowingly powerful. The returns that can be made on LP'ing over the next 10 months absolutely dwarf the returns you'll get from picking a good crypto and getting 10X.

This happens because of a few factors:

- you generate the normal profits you would anyway on the principle, but then also generate additional cryptocurrency which then also generates returns.
- you can occasionally re-stake the crypto you earn to then be earning returns on the returns you're earning from your principle.
- the impact of compounding on long term profitability is pretty staggering. I've been running simulations for the last few days to find the optimal compound times (ie. hourly vs bihourly vs daily vs weekly) and the increase in total ROI can be 5X just by compounding.
- there are very high yields available if you search hard that are not any more risky than buying the crypto normally and they are for some of the most trusted cryptos in the market, although lesser know cryptos do tend to have higher yields.

I have some capital testing a 700% APY yield strat, and some other capital testing a 500% ROI per month strat (yes, you read that correctly) that is complicated and more risky than normal imo, but for those kinds of returns, worth exploration.

Spend time looking at the different platforms and seeing what they each offer and how they interlink. Explore new platforms people aren't paying attention to. Don't just accept lower returns because "how could that be possible".. first-hand, it is. DeFi is more powerful than any other area of, not just cryptocurrency, but technology as a whole with regards to the generation of wealth. 2021 is a golden opportunity, smart risks = success.

Posts like these remind me why I love this side of the internet so much. Thanks a lot OP

Wish I spent my early childhood looking at crypto & online marketing vs playing free online RPG's... I would of been a millionaire today but alas time to learn and do big things in 2021

 

[Deleted member 1333509]

Posts like these remind me why I love this side of the internet so much. Thanks a lot OP

Wish I spent my early childhood looking at crypto & online marketing vs playing free online RPG's... I would of been a millionaire today but alas time to learn and do big things in 2021

Mate it's good to look to the present within the context of the future - making a few good choices in 2021 with regards to crypto can lead to bigger payoffs than you'd get from working a 9-to-5 all year for most other years.

And where do you get these huge returns from? I am looking at Binance earn and they just give X% or XX% interest?

The thing I've always found is pretty consistently true for crypto (and for many things) is the inverse relationship between risk (or at least collectively perceived risk) and opportunity.

In July last year, many of the biggest DeFi platforms on the market today we're unknown commodities and did not have months of battle testing behind them - therefore huge APY's were available there (I'm talking about ERC-20 defi platforms). Now they are widely trusted and considered as secure as most centralized exchanges.

So in order to find better yield opportunities, you have to look to the places that have higher perceived risk. Staking on Curve.fi isn't going to give you 300% APY, but staking somewhere else might (read: will).

Within the context of the risk-opportunity dynamic, Binance is all the way to the left of that spectrum. ie. Binance is rock solid, and not only are you highly unlikely to have any problems there, but if for any reason you do, Binance will cover the loss without fuss using their Safu fund.

Therefore, Binance is selling that - the ability to be involved in defi with very low risk, but because of that, their staking options are absolutely saturated for the most part and yields are lower than many other places.

 

[Nic00B]

Interesting, will look today for more info

 

[Kambaggo]

Can you share some of the staking platforms you use?