$$$ KPO and CZM $$$: CakeDeFi - New Plan/Strategy

Wednesday, June 16, 2021

CakeDeFi - New Plan/Strategy

It has been about 2 months since I went down the DeFi rabbit hole and my only regret is not starting it earlier. I went from "wow, 8-10% yield on USD using BlockFi/Celsius" to "wow, 100% yield on CakeDeFi" to thousands or millions of yield in DeFi.


Including the capital for these LPs for more context/information:
TITAN-IRON: US$100
WEXpoly-MATIC: US$50 (got free WEXpoly from airdrop)
IRON-USDC: US$200


Including the capital for these LPs for more context/information:
QUICK-MATIC: SG$3,000 (not including ADDY and MATIC rewards)
QI-MIMATIC: US$100
MALT-DAI: US$200 (this is likely a 100% loss, waiting for the compensation plan. lol)

All these have their risks and it is all about managing your risk. Generally, I would only put US$100 into risky farms and US$200 into new/algo stablecoin LP. I have taken profit for one of the farm (TITAN-MATIC) where I turned US$100 to US$500 in about a month. Despite the crash at the end of May and one of my farms being exploited by a hacker (DeFi - Risks and Dangers (I Lost 97% Overnight)), I am still making a profit :) Ops, I digress. Let's go back to CakeDeFi.


I tried out CakeDeFi back in April and blogged about it here - CakeDeFi - The Easy Way to DeFi. Back then, the yield for staking DFI was just 38.3% so to get the higher yield, providing liquidity was the obvious choice at 92.12%. Hence, I provided liquidity using 0.02969211 BTC and 514.44764650 DFI with a capital of SG$5k. The price of BTC then was around US$60k.



Fast forward to today, the yield for staking DFI is much higher at 134.3% as compared to providing liquidity 95.09%. As a result, my new plan/strategy is to stake the DFI rather than use it to provide liquidity and be subjected to impermanent losses.


Again, I am not going to explain what impermanent loss is (homework for readers interested in providing liquidity) but it sort of work in my way because if I were to remove liquidity now (it would have been even better a few days ago but as usual I procrastinated), I will be getting back more BTC and less DFI (as the price of BTC fell more than the price of DFI). 


Mathematically, my loss is around SG$60 but I would choose more BTC anytime. 


After removing liquidity, I transferred all the BTC out to BlockFi with a withdrawal fee of 0.0005 BTC (~SG$27) to accrue more interest. Meanwhile, I am still trying to figure the most cost-effective way to bridge my BTC to Polygon with the plan to deposit them into Aave as collateral so I can borrow more to farm in Curve.


Aave is where I am keeping the most of my crypto now if you are wondering and I blogged about it here - DeFi - Aave, QuickSwap and Adamant on Polygon (Matic Network). The withdrawal of BTC from CakeDeFi is being tracked as a withdrawal of capital to be deployed elsewhere, hence the current capital for CakeDeFi is:
4th April 2021 - Bought 0.06289197 BTC for SG$5,000
15th June 2021 - Withdraw 0.03445945 BTC which was purchased at ~SG$2,740 (5,000 / 0.06289197 x 0.03445945)


Capital: SG$2,260.00
Current: SG$2,931.49

Anyway, I have blogged about different ways to leverage crypto to build wealth for people with different risk appetites:
The safer approach using stablecoins
Risky approach but more hassle-free
- CakeDeFi - New Plan/Strategy
Highest risk and you are on your own
- DeFi apps on Binance Smart Chain (BSC) such as PancakeSwap and PancakeBunny

If you are interested in the platform I am using, do sign up using our referral links for some bonus :)
BlockFi: Deposits US$100 or more into your BlockFi Interest Account (BIA), you will earn US$10 in BTC and we will earn US$10 in BTC too.
Celsius Network: Earn US$40 in BTC with your first transfer of US$400 or more and we will earn US$40 in BTC too.
CakeDeFi - Deposits US$50 or more into your CakeDeFi account, you will earn US$30 in DFI and we will earn US$10 in DFI too.
Gemini: We will both receive US$10 of bitcoin after you buy or sell US$100.

On a side note, Futu's moomoo app has made their sign-up bonus even more attractive (one free Apple share + one free Nio share with 5 trades + other benefits) and it has been extended to 30th June 2021 (2000hr SGT)! Take a look at the latest benefits here.

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