Hello DEFI degens, i have a question for the community that i hope u can contribute. I am looking to start my defi portfolio, i’m looking to allocate funds, in 65% low risk (2-5% APY) and the rest in more middle-high risk scenarios (trading, NFTs, Shitcoins, High yield LPs). My question is, ¿How do you personally manage your portafolio (risk), and how often do you change strategies or look for better returns ?
5 thoughts on “Opinion on investing portfolio”
Well, there are several ways to approach this, depending on your perception of risk. What do you consider low risk? Are you comfortable with exposure to ETH/BTC price fluctuations?
One of the safest options in DeFi is staking, which typically offers between 4-6% APY. However, this APY is in ETH terms. For example, if you stake 1 ETH and receive 5% APY after one year, you’ll have 1.05 ETH. But if the ETH price drops from $3,000 to $1,000, you would lose almost $2,000. Are you okay with that?
Let’s discuss principal-protected strategies first. These are strategies in which you can always withdraw at least the same number of tokens you initially deposited. You may want to allocate 2/3 of your funds to a “principal-protected” strategy, while using the remaining 1/3 for riskier strategies.
I can suggest a few names for you to research and decide upon, but remember, this is not financial advice.
For principal-protected strategies, consider staking and lending options. Look into staking platforms like Lido, Rocket Pool, and Frax, as well as lending protocols such as Aave, Compound, and Morphos.
Additionally, there are “yield boosters” that aim to enhance the yield generated by these protocols. Examples include Pods, Ribbon Earn, Instadapp, Stake DAO, and Idle DAO. For instance, Pods uses the weekly yield from Lido to buy call and put options, so when there’s a significant shift in ETH prices, you get an option exercise and a “boost” to your yield. Instadapp, on the other hand, leverages your stETH position to maximize Lido’s rewards but leaves you exposed to potential liquidation if stETH becomes unpegged from ETH.
For risk-on strategies, there are a lot of options. You can try some leveraged trades on GMX and dYdX if you want to place some bets in the direction of crypto prices. You can also check how LPing into GMX works (staking GLP). You can check historical returns from some strategies on [defireturns.com](https://defireturns.com) to better understand how their past performance was and make better decisions, but remember that past performance aren’t guaranteed returns.
I’d stay away from LPing in DEXes and from option-selling vaults unless you REALLY know what you are doing. (I’m not really into NFTs, shitcoins, and quant trading, so I can’t say anything about this topic)
Disclaimer: I work at Pods Finance and I’m the developer of defireturns.com
Basically, I don’t know. I think I am doing this randomly.
I don’t have a specific strategy, what i do is pay a lot of attention to the market trends, using Tokenmetrics to identify when to buy and make adjustments when necessary, and i make sure I use a secure wallet with my private keys securely stored
I invest 90% of my money in more stable projects like BTC, ETH, FET, DIA, LINK, and others. The remaining 10% goes into memecoins, but I quickly sell them for a profit.
Here is how I do mine, got 30% in staking on gems like XTZ, and SYLO, Because of their decent yields, with 30% for trading, not a fan of NFTs so the rest 40% is used to diversify into alts.