#1. Strategy guide: Earn 20% profit from BNB using #dev DeFi

Aug 17, 2021

We have collected strategies for all users of #dev DeFi, when using #dev to make money. The strategy below are presented by one of our very first user.

Strategy #1: Earn 20% from BNB

It’s a simple strategy. This strategy allows BNB hodlers to receive rewards from Pancakeswap.

  1. Supply WBNB to #dev DeFi and collateralize it.
  2. Use collateral to borrow CAKE at 30% Loan-to-value ratio. Your borrow APR will be around 20%.
  3. Use CAKE to stake on Pancakeswap for 1 year using Auto CAKE pool, your APY is around 107%.
  4. This step is extremely important if you don’t want your WBNB to be liquidated. Withdraw a portion of CAKE each 4-month to pay your borrow interest which is 6.67% and keep the rest in stalking pool. This will remain your Loan-to-value ratio stays under 50%.
  5. After 1 year, your staking APY on Pancakeswap will be around 81.5% after you pay all the borrow interest issued. And your actual profit from your BNB capital will be:

Actual Profit = 81.5% * 30% = 24.45%

#dev DeFi use case: Earn 20% APY from BNB
Actual Profit Calculation

Since CAKE and BNB are moving together, your collateral will have a low chance to be liquidated.

You can choose a lower Loan-to-value ratio such as 15% to make sure that your WBNB won’t be liquidated in most cases. Your actual profit would be around 11% — still pretty high in comparation to stalking on Binance, Venus, etc.


Important notice:

Each strategy is just a use case of #dev DeFi and not financial advice. Apply these strategies at your own risk.

Collected from:

Other strategy guides: