How to Build a 100% APR DeFi Portfolio (Concentrated Liquidity)
https://www.youtube.com/watch?v=4Cb_JEjhWFA
Transcript:
I’m going to walk you guys through the steps of building a 100% APR passive income portfolio through decentralized finance by using concentrated liquidity pools. Let’s hop right in, guys. So if you guys don’t already know, Metrix Finance is your go-to solution when it comes to number one, finding concentrated liquidity positions, number two, simulating actual results to make sure that they are up to your standards, and then number three, building out your portfolio.
And pretty soon, we have some cool features that are going to be announced, so make sure to stay tuned for that on our social media. But diving right in, we’re going to want to launch the Metrix Finance app and start over on the Discover page because the Discover page is where we’re going to find all of the different strategies.
Now, right now, every single exchange on Metrix Finance is completely free to use. So if we want to look at, let’s just say, Orca positions along with Uniswap V3 positions, but also let’s just say we want to throw some PancakeSwap in the mix, we could select those exchanges right there.
Now Now I’m also going to select the respective networks that these ones have the most TVL on. So Uniswap dominates the Ethereum market, PancakeSwap dominates the BNB chain, and Orca dominates the Solana network when it comes to concentrated liquidity in specific. Radium has a larger overall TVL, but Orca has a larger concentrated liquidity TVL.
So that’s a very, very important factor that you need to keep in mind when it comes to your analysis. But if we really wanted to, we could select both. So let’s just go ahead and do that. Now off the bat, we are gonna be greeted with over 1,000 different pools. And that’s a lot of pools to look through. So we’re gonna want to start to narrow things down by using the different filters.
And one thing that I like to do is adjust this calculation range to 14 days because I wanna look at stuff that’s a little bit more short-term because I am going to try to squeeze out a little bit more juice and get that roughly 100% APR on this overall portfolio. So from there, I’m going to go where it says TVL and I’m going to look at stuff that has higher than a $1 million TVL because I want to look at some stuff that is more blue chip, but also isn’t super blue chip to the point where it has crazy TVL, which means it’s probably time to factor out
some of these like 400 million, 200 million, even $100 million TVL pools. So let’s do stuff that’s lower than $100 million TVL. That’s going to take us down to 510 pools. So we still got a lot of pools on this list. Maybe we want to adjust that to $50 million. And that brings us to 500 pools. So once again, this is probably a good starting point.
And we could just start to use other filters like average fees fee to tbl ratio Average volume and volume to tbl ratio So i’m going to sort by the 24 hour average fees to tbl This is going to show me stuff that has the highest ratio that’s being traded most often compared to its overall tbl Like for example this ethereum to rwd pool is showing that it generated roughly a hundred and twenty thousand dollars in fees over the past 24 hours on average and it only has a one million dollar tbl now I know that that seems a little fishy
So I’m gonna click this little button right over here to actually open it up on uni swap to see what this actually looks like And when zooming out and looking at the past two weeks You can see that there’s actually this one day where it shows 13 million dollars in volume and then $130,000 in fees now this does not seem accurate whatsoever considering that we’re doing a dollar 42 in fees This is not a metrics finance issue This is a uni swap issue and this is a data issue on the blockchain, because clearly,
we are not doing that volume anymore. And this seems to be artificially inflated volume. So right now, we’re working on solutions to kind of factor out the data glitches on Uniswap’s part or on other exchanges parts. But what we can do in the meantime, is we can look at lower than 1000% APR, that’s going to take us down to 46666 pools and the reason why we might want to look at lower than a thousand percent apr because typically stuff that gets above a thousand percent is going to be kind of like what i just showed you a data glitch or a scam where you can’t
actually get your money out and right off the bat i see ethereum to zero and i know that zero recently did an airdrop of their token so obviously there’s gonna be a lot of trading volume over here i’m gonna click this little star icon just add it to my favorites we’re going to find some meme coins like there’s this ethereum to turbo over here i personally want to try to stray away from including meme coins if i can so the next thing that i see right here is going to be ethereum to ton and i know ton is kind of native to the telegram
platform and telegram’s a pretty big platform and this is all stuff that i know just by being in the industry but if you want to learn this stuff you could just go over to coin gecko or coin market cap typing the actual assets and you’ll be able to pull up the website and learn more about the platform so for example if you pull up ton.
org it’s the open network for everyone and it ties directly into the telegram platform and it’s built by the telegram community we could also add stuff like jasmine over here to our favorites list and overall we just want to look for a good amount of solid opportunities now off the bat i noticed that i have a lot of ethereum network positions so i’m actually going to remove jasmine i’m going to remove ethereum network right here and i’m going to start to look at these other exchanges and other networks because i do want to be diversified across
different networks because not only does it help me out being across different networks sometimes having cheaper gas fees on the bnb chain and solana network it also helps me get exposure to a different variety of assets because typically you have different types of assets on different networks.
Like BNB chain, you’re going to have a lot of different assets than you will over on the Ethereum network. And then same thing goes for like the Solana network and the Avalanche network and base network and so on and so forth. So first thing I see is going to be this USDC to Sol. I’m going to sort by fees APR to see if I can maybe find a better USDC Sol position because that is one that I definitely want to include in the portfolio And I do see this M sold to use DC and M So is a derivative of soul so I’m gonna bookmark that one because that seems to be doing the best return over here
I also see B and B to pendal and I know that pendal is a pretty big platform This has a TV of two million dollars. So I’m also gonna add that one to the list and just like that We have a good amount of opportunities We have roughly four different pools that we can go and do further research in and actually build a portfolio out of now ideally what you would want to do is come up with about 10 to 15 different pools and you would want to go through and conduct due diligence to see which assets you want in the portfolio versus which you don’t start to narrow that 10 to 15 down
to something like five different positions to have in the pool i’m going to build the portfolio off of these four positions because i’ve actually seen these four positions before and at the same exact time i have experience with these assets and i’ve been in this game for a very very long time so i kind of know what i’m doing so we’re going to start with this zero one we’re going to open up the simulation page and just start to find the range and what we’re going to be doing is after we find the range after we go ahead and
conduct our analysis we are going to add it to the strategize section now i typically like to just put the deposit amount at ten thousand dollars just to have kind of a baseline and then adjust it from there after i start to add it to my portfolio. Now, off the bat, you’ll notice that this position has only been around since June 20th.
That’s because that’s when Zerotoken launched. So we are going to be taking on some volatility here because Zerotoken did just launch. And the price is trending upwards, which means that Ethereum, which is the base asset, is doing better than ZERO, which is the quote asset in this liquidity pool. We will adjust our range accordingly.
I’ll probably bring this up to something like $9.95, and then I’ll adjust this max price to something up here like $1,600 to give us some room for Xero to continue to decline, mainly because since it just airdropped and a lot of people will be selling that airdrop, hey, I personally sold that airdrop.
We got to give it some room to decline. And from here, I’m going to scroll down, look at the volume history. You could see the past three days, the volume has gone down a little bit. So I’m just going to adjust my volume history to include only three days. And even then that’s still roughly 450% APR. I’m going to add that one to my portfolio by clicking the save to portfolio button.
And I’m going to go back over to my favorite pool section and start to find the other positions. So next off we have this wrap BNB to pendel. Let’s see if this is a good position to deploy our capital into. So I’m going to go ahead and do the same exact process. Set my deposit amount at $10,000. Off the bat, you’re going to notice it’s shown this crazy APR, but there’s also a lot of liquidity right over here to the left and not so much all the way over here to the right.
So we need to factor that in, which we’ll do in just a second, but I want to find the range first. My range is going to be relatively similar to what the base is. I’m going to do 120 on the top, kind of cut out some of these days, but still keep us in range for the majority of the past 30 days. And then over here, I’m going to adjust this accordingly until I get about 55% Pindle.
And as you can see, I got 55% Pindle now, and that keeps me in range for the past 30 days or so. And I’m going to put that at 82.5. So 82.5 to 120. It’s not too bad of a range. And then I’m going to go down to the volume history, and I’m going to use five days of volume because that looks to be somewhat consistent of the past five days. And I’m also going to adjust this current price to be where there’s more liquidity, which puts us roughly 50% APR.
Now that’s still a pretty decent APR for this position. I’m going to add it to the portfolio because I wouldn’t mind allocating here just so I have some Pindle in my portfolio, but also some BNB because those are two assets that have been doing pretty well over the past couple months. And we’re going to move on to ETH Ton and we’re going to do the same exact process. Set that deposit amount at $10,000.
And I’m going to go over here to my min price and max price and adjust accordingly. Now, as you can see, the price is going down. That means that Ton’s doing pretty well compared to Ethereum. So I’ll adjust my max price to something like right over here at 535. I’m going to cut out these days because we’re no longer doing prices like that.
We’re all the way over here, right? So we got to get our head in the game and start to zone in on this. And I’m going to adjust this until I have about roughly 42% ETH and 58% TON. I think that’s a pretty solid ratio because it gives me more exposure to TON, which is the asset that’s doing pretty well recently. And once again, we’re at the peak of distribution. So no need to adjust the current price.
And if we scroll down, you can see if anything, the volume has been going up over the past 30 days. So we are going to add this to the portfolio as well. Just hit that save to portfolio button. And then heading into the last position, which is IMSOL to USDC, let’s go ahead and take a look at this one and see what type of return that we can get over here.
Now the price has been going down, which actually means that IMSOL has been going down. The price of SOL has also been going down because we’re using USDC as the quote asset, which is equal to $1, which means that we’re basically using US dollars as a quote asset. So if we go down a little bit, we’re going to go ahead and look at our min price.
And I want to bring this up just a little bit mainly because i think soul’s kind of bottom is going to be around what we have been hitting recently now remember i’m not looking at the price of soul i’m looking at the price of m soul m soul has the staking yield compounded back into its price that’s why it’s a higher price than soul itself and then from there i’m going to adjust my max price accordingly to something like 210. so 135 to 210 is going to get me roughly a 84% APR.
Remember, we still need to go down here and look at volume history. That is pretty consistent. And I probably want to squeeze out a little bit more juice. So I’m going to put that at 200 right there. And I’m going to bring this up to something like 140. And that’s going to be a little bit more aggressive. And if I really wanted to, I could be even more aggressive and put that 145.
And that will give me about 57% soul, which if i’m bullish on soul right now i definitely want to have 57 so i want to have more than 50 because well that’s the asset that i think is going to be doing better and then just like that we’re going to add that to the portfolio over here and go to the strategize section and the strategize section is now going to pull in every single asset that we just added to our portfolio remember we had a 10 000 allocation in each of them and as you can see that’s collectively making roughly $190 every single day.
And that’s roughly a 175% APR. Now that’s off of $40,000 and we have not really managed our risk quite yet. Zero is a pretty high risk position considering that it recently just launched. So what I’m going to do is I’m going to adjust this to $5,000. And then from there, I’m going to start to fill in the actual deposit amounts that I would make into these positions.
So that zero one, probably about $5,000. Whereas this Pendle one, I think Pendle’s pretty solid. I’m going to do about $7,500. Over here to EMSOL to USDC, I’m actually going to do 12.5K, mainly because this is the more blue chip pair that we have in here. Then we also have this Ethereum to Ton1 as well that we can include, which I’m just going to keep at 10K.
And collectively, that’s doing about 140% AP 140 apr which is far surpassing our initial goal of 100 apr but we do have to keep in mind if volume were to go down or if let’s just say more liquidity were to come into the market this apr can get diluted which is why i like to be relatively conservative when looking for positions but it’s as easy as that that’s how i was able to identify opportunities find the actual returns that they’re getting in the ranges and then also build out a portfolio for these assets and that’s
$35,000 generating roughly a hundred and thirty three dollars per day It’s 138 percent APR and that’s over 10 percent per month, which is pretty good
