#2. Strategy Guide: Earn 15% profit from BUSD using #dev DeFi

Aug 17, 2021

Hi guys! 👋

The 2nd strategy guide to be introduced is a strategy to make use of BUSD utilization that help you to reach 15% APY and preserve BUSD at the same time by opening a borrowing position on #dev DeFi.

It’s a basic strategy but very effective, without further ado, let’s find out how you can increase your profit from holding a stable coin to 15% per year.

Strategy #2: Earn 15% profit from BUSD

Step 1: The first step is deposit BUSD as collateral to borrow CAKE on #dev DeFi.

Step 2: I borrow CAKE at 20% APR, the loan’s value is 20% of my collateral. 20% is a safe ratio since 50% is maximum loan-to-value ratio on #dev.

Step 3: I use borrowed CAKE to stake on Pancakeswap at 100% APY. My APY from initial BUSD is now 16%.

APY = 20% * (100% — 20%) = 16%

I prefer to pay the borrow interest when my loan-to-value ratio reaches 40% to secure my BUSD from being liquidated.


Important notice:

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

Other strategy guides: