Let me preface this article by saying that what is written here does not constitute financial advice. This strategy is extremely risky and could result in significant losses. I’m sharing it to educate you as well as explain my reasoning why high-risk DeFi strategies can have room in a portfolio.

The performance, risk and HODL levels of my personal DeFi fund are shown in the graphs above. The risk level is determined by how volatile an asset is and expresses a higher degree of risk when the level is rising. The HODL level describes the planned length of a strategy, meaning the lower it is, the more short-term strategies are being used in the portfolio.

Over the past 3 months, my risk level has been dropping consistently. In March, however, the risk level started to increase again, due to the crypto markets recovering, meaning a larger portion of my assets were in volatile assets. I counteracted that by steadily taking profits and keeping the risk level stable. But since I have a large portion of my portfolio in stables (~40%), I wanted to increase my risk, to allow me to profit from a continued upward movement.

The strategy is actually pretty simple, based on the Fantom network and is designed to last at most 1-2 months, depending on market conditions.

Our main exposure is FTM and TSHARE, the latter being a highly-correlated governance token. The high correlation is great because it does minimise impermanent loss when we supply liquidity on Spookyswap. We then stake our spLP tokens on Tarot Finance and use 5x leverage.

We then harvest the TAROT rewards every day and stake them into the TAROT vault, giving us xTAROT. If possible we would then also stake the xTarot into vaults. Every week I plan on selling all my xTAROT into the Beefy stable pool. However, rewards that are earned from the xTAROT vaults are kept and only liquidated at the end of the strategy.

The greatest risk in this strategy is the underlying token to hold TSHARE and it dropping so quickly that it would cause me to be liquidated. This is why I want to harvest rewards daily and take profits weekly.

Projected profits, given that the markets stay relatively stable and volume remains high, are roughly 40% in 30 days.

Let me preface this article by saying that what is written here does not constitute financial advice. This strategy is extremely risky and could result in significant losses. I’m sharing it to educate you as well as explain my reasoning why high-risk DeFi strategies can have room in a portfolio.

The performance, risk and HODL levels of my personal DeFi fund are shown in the graphs above. The risk level is determined by how volatile an asset is and expresses a higher degree of risk when the level is rising. The HODL level describes the planned length of a strategy, meaning the lower it is, the more short-term strategies are being used in the portfolio.

Over the past 3 months, my risk level has been dropping consistently. In March, however, the risk level started to increase again, due to the crypto markets recovering, meaning a larger portion of my assets were in volatile assets. I counteracted that by steadily taking profits and keeping the risk level stable. But since I have a large portion of my portfolio in stables (~40%), I wanted to increase my risk, to allow me to profit from a continued upward movement.

The strategy is actually pretty simple, based on the Fantom network and is designed to last at most 1-2 months, depending on market conditions.

Our main exposure is FTM and TSHARE, the latter being a highly-correlated governance token. The high correlation is great because it does minimise impermanent loss when we supply liquidity on Spookyswap. We then stake our spLP tokens on Tarot Finance and use 5x leverage.

We then harvest the TAROT rewards every day and stake them into the TAROT vault, giving us xTAROT. If possible we would then also stake the xTarot into vaults. Every week I plan on selling all my xTAROT into the Beefy stable pool. However, rewards that are earned from the xTAROT vaults are kept and only liquidated at the end of the strategy.

The greatest risk in this strategy is the underlying token to hold TSHARE and it dropping so quickly that it would cause me to be liquidated. This is why I want to harvest rewards daily and take profits weekly.

Projected profits, given that the markets stay relatively stable and volume remains high, are roughly 40% in 30 days.