#Bitcoin #Ethereum #Solana and all the big-cap coins have been acting almost like stablecoins the past few weeks, with very little price action.
During a sideways market like this, it's hard to find good opportunities but one strategy works especially well!
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That strategy is pseudo-neutral yield farming, which is done by:
1) Opening a yield farming position on a stablecoin-paired LP (e.g. SOL-USDC, ETH-USDT)
2) Shorting the same number of non-stable coin (e.g. SOL, ETH), typically by selling a PERP (e.g. SOL-PERP, ETH-PERP)
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Some platforms such as @Francium_Defi & @TulipProtocol on #Solana, @AlpacaFinance on #BSC and @Alpha_HomoraV2 on #Avalanche offer Leveraged Yield Farming.
This is awesome because it means you can borrow the non-stable coin directly on the platform, effectively shorting it.
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@Francium_Defi has a handy calculator (francium.io/app/calculator) making it easy to simulate estimated PnL from different yield farming strategies.
As you can see, a pseudo-neutral strat earns $ whether the market goes up or down... but only within a certain band.
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If the price of the non-stable coin drops by more than -56% or increases by more than +85% you'll start losing money.
In fact, a pseudo-neutral strat earns the most when the market is perfectly flat!
This is why it could be the perfect strategy during this sideways market.
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