#4. Strategy Guides: Open a leverage farming position using Rabbit Finance and #dev DeFi.

Aug 19, 2021

Strategy #4 is created by an users of #dev DeFi in Strategy Innovation event, the strategy makes use of #dev DeFi and Rabbit Finance to make profit.

Strategy #4: Open a leveraged farming position using Rabbit Finance.

My strategy is a leverage farming strategy. I borrow BUSD from #dev then use Rabbit Finance USDT-BUSD (Pancakeswap) pool to leverage my assets to 9x for the best profit.

Of coure you can use other pools with higher APY, but I prefer stablecoin-stablecoin pools to secure my position from being liquidated.

  1. I collateralized $3574 worth of BNB to borrow 1072 BUSD. Loan-to-value ratio = 30%. Borrow APR = 3.07%.
  2. I transferred 1072 BUSD to Rabbit Finance to open a 9x leverage farming position on USDT-BUSD (Pancakeswap) pool. So my total assets in position is worth 9634.49 BUSD after fees.
  • My debt ratio = 88.88%. Maximum debt ratio = 94%. In my calculation, my position will be liquidated if BUSD drops 45% against USDT, very low chances for this to happens.
  • Farming APY = 47.12%

Actual APY = (47.12% — 3.07%) * 30% = 13.21%.

Sadly Lending APY of BNB is zero on #dev, otherwise my APY will be a little bit higher. Hope they will improve it soon.


Important Notice:

  • All strategies are collected from users of #dev DeFi.
  • Each strategy is just a use case of #dev DeFi and not financial advice. Apply these strategies at your own risk.

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