How to Maximize DeFi Lending Interest with Yield Bouncers
One of the most popular use cases in DeFi is earning lending interest! Because DeFi is about peer-to-peer (p2p) finance, p2p lending often enables lenders to earn higher interest rates without middlemen like a bank to eat up the fees paid by borrowers. With multiple lending platforms to choose from, each offering a different lending interest rate to supply/deposit digital assets like DAI, sUSD, or ETH into a pool, one is challenged to find the highest interest rates to maximize earnings.
This video is about how to maximize my earnings with DeFi lending by using a yield bouncer. I don't often lend my digital assets like DAI, sUSD, USDC, or ETH to a single pool because I would be challenged to chase the highest interest rates across lending platforms like Compound, Aave, dYdX, Maker's Oasis (the DAI Savings Rate), DDEX, Nuo, and more. Moving my funds and "chasing yield" would eat up my profits by wasting money on transaction fees (gas). The answer is I use a "yield bouncer" that automatically moves my lending assets to the highest interest-earning pools!
I'll show you 4 yield bouncers I have used below, including Staked RAY, Idle.Finance, YEarn.Finance (via Curve Finance Y Pool), and Rari Capital.
In this video, here's what I cover:
1️⃣ How to compare lending rates based upon my assets and DeFi lending platforms, including platform risk with DeFiScore.io
2️⃣ A Review of Staked Robo-Advisor for Yield (RAY)
3️⃣ A Review of Idle.Finance
4️⃣ A Review of YEarn.Finance (powering the Curve Y Pool)
5️⃣ Recap of Risks Using Yield Bouncers
Helpful Resources:
🛠️ To compare lending rates by assets, platform, and platform risk (DeFi Score), go to defiscore.io
🛠️ To learn more about Staked RAY, go to: https://staked.us/v/robo-advisor-yield
🛠️ To learn more about Idle.Finance, go to https://idle.finance/#/
🛠️ To learn more about YEarn.Finance (aka IEarn.Finance), go to: https://yearn.finance/earn
🛠️ In the video, I mention I actually combine using YEarn.Finance via the Curve Finance Y Pool found at curve.fi/iearn/deposit, which is one step beyond lending and partially why I've earned more, taking risk as both a lender and market-maker in Curve. Watch my original tutorial on the Curve Y Pool (powered by YEarn.Finance): • How to Farm Yield with Stablecoins Us...
🛠️ To learn more about Rari Capital, go to https://app.rari.capital/
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Disclaimer & Risks: None of the DeFi teams mentioned in this video paid me to produce this video. This is not financial advice and you should approach all DeFi applications, wallets, protocols, and tools with caution. Please be aware there is always risk in using DeFi, including technical risks (ie smart contracts hacks), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also there is risk whenever using leverage (if it's ever used), and there's risk of the dollar-peg failing in any stablecoin. Please be mindful of the risks I recap related to yield bouncers, especially the fact I'm "stacking exposure to smart contract risk" by using a mechanism that moves my money to different lending pools depending on on the highest interest rate.
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