Loader
logologo
Alpha Zone
Analysts
My Reading List
Log in
DeFiGaming & MetaverseInfrastructureMarketsNFTs
A Degen's Guide to BTC Farming - Part 3: Levered Exposure
Niklas Polk
main
Key Takeaways
3 min read
  • Levered exposure farming is ideal if you are bullish BTC, as you will profit even more off upside BTC price movements.
  • The main concept is using BTC as collateral to buy even more BTC.
  • You can even go short another asset like ETH to adjust for your risk appetite and investment thesis.
  • This reports dives into how to do this and even earn yield on top while executing this strategy.

Introduction

The last part of this report series covers levered exposure BTC farms. This means, that you have increased volatility and are basically longing your spot BTC bag. This again involves a lending protocol at the core where you borrow against your favorite version of BTC. The strategy is especially effective when you expect the markets to pick up soon.

Basic setup

The basic setup is the same as for the reduced exposure farms. You collateralize a lending protocol with your version of BTC. Please revisit the previous article for a broader overview...