#5. Strategy Guide: Open a leverage farming position using Alpaca Finance and #dev DeFi.

Aug 25, 2021

Hi guys, I would like to present a strategy that I’m using to make money from my BNB. I develop this from the previous strategy, I borrow BUSD on #dev then open a leveraged farming position on Alpaca Finance. Please apply at your own risks.

Strategy guide #5:

  1. Collateralized BNB and borrow BUSD on #dev.

I deposited 11.29 BNB into #dev and wait until BNB/BUSD fall to 295, then I borrowed 1,000 BUSD.

  • Value-to-collateral ratio = 30%. (suggested ratio)
  • Borrow APR = 2.5%.

2. Open a leveraged farming position on Alpaca using VAI-BUSD(PancakeSwap) pool.

When you open a leveraged farming position on VAI-BUSD(PancakeSwap) pool you can only borrow BUSD. So I swap 1,000 BUSD to 1197 VAI.

Deposit VAI to VAI-BUSD pool to open a 4x leveraged farming position.

  • Farm APY = 69.4%.
  • Debt ratio = 75%.
  • Liquidation threshold = 90%.

According to Alpaca, VAI price can drop 30% against BUSD before your position would be in danger of liquidation. So my debt position is pretty save.

Estimate profit = (69.4%-2.5%)*30% = 20.7% / year.

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.

Previous strategy guides: