hey, I’ve been in crypto a while but just starting to look at DeFi. Looking to share ideas and feedback.
I want to put some of my long term BTC holdings to work in a way that isn’t too risky. I want to stay exposed to BTC, but gain interest.
I know there are centralised platforms like blockfi offering 6% on BTC, but I think i can do better.
my initial idea is to:
- change BTC to wBTC
- use the wBTC as collateral on AAVE, borrow 100% the value of the BTC in stablecoins, at about 4% interest
- put the stable coins in the curve Y pool
- use the yearn vault to automate selling the crv rewards
- if better pools or rewards show up, switch
- when finished after a year or more, exit the pools, pay back the loan at about 4%, get my BTC back and keep the profits
how does this sound? I know that there are risks of contracts being hacked and stablecoins failing, but I that feels ok to me.
any suggestions for improvement? is it possible to get a leveraged loan on the BTC? is aave a good lender?