#4. Strategy Guides: Open a leverage farming position using Rabbit Finance and #dev DeFi.
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.
Of coure you can use other pools with higher APY, but I prefer stablecoin-stablecoin pools to secure my position from being liquidated.
- I collateralized $3574 worth of BNB to borrow 1072 BUSD. Loan-to-value ratio = 30%. Borrow APR = 3.07%.
- 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.
- 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.
- Link to the post: https://medium.com/@davefrommar/open-a-leverage-farming-position-using-rabbit-finance-and-dev-defi-b62c375eda1d
- Strategy Innovation event: https://twitter.com/devDeFi_BSC/status/1425475023519719426?s=20
Previous strategy guides:
Since #dev DeFi is a lending & borrowing protocol, lend one asset to borrow and make profit from another asset is an essential use case that #dev DeFi offers. For over 5 months after launching, #dev DeFi has finally decided to support Bitcoin (BTC) as a collateralizable asset. Let’s see how you can utilize your […]
Make the best profit from your BNB using Alpaca vault from #dev DeFi and Pancakeswap.
We are thrilled to announce that Alpaca vaults have been released on #dev DeFi, this is the first step for #dev DeFi to be an aggregate lending & borrowing protocol on Binance Smart Chain.
An article of our vision, model and value proposition. Focusing on developing use cases of lending & borrowing model, our team is building a sustainable model which is not depend on any native token.