DeFiLlama launches new strategy finder for DeFi yield farming

DeFiLlama, the leading TVL and analytics platform for the DeFi ecosystem, has introduced a new strategy finder designed to allow yield farmers uncover and tap into top yield farming opportunities within the industry.

Delta Neutral Yields, a product that’s been in development for several months, is now live and offers crypto yield farmers the tool that can help them earn impressive yield returns on their crypto assets, including Bitcoin (BTC), Ethereum (ETH) and USD Coin (USDC).

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DeFi Neutral Yields offers ‘thousands’ of strategies

According to the DeFiLlama team, customers can leverage Delta Neutral Yields to access the aggregator’s massive DeFi database to find farming opportunities with 20%+ APY.

Some of the strategies the new product can uncover include leveraged farming, arbitrage between lending protocols and arbitrage against a yield aggregator.

For instance, DeFiLlama points to leveraged farming of Avalanche (AVAX) staking. An investor can earn close to 22% APY on BTC with exposure to Aave and AVAX staking. The first thing is to deposit BTC.b on Aave and borrow the native AVAX token. After this, stake the tokens to get sAVAX, which you deposit on Aave again to borrow AVAX. 

Repeating the process opens up a farming opportunity leveraging AVAX staking, with nearly 22% APY on the BTC.

As for yield opportunities via arbitrage against a yield aggregator, investors can supply ETH for a 5.8% APY and borrow DAI. This is then deposited into Reaper Farm for 15.7% APY, with the overall APY on the initially deposited ETH grown from around 6% to more than 16%.

According to DeFiLlama, the new yield dashboard can help find thousands of strategies similar to the above. Customers can tap into these strategies to maintain their original exposure, even as they farm higher yields on other digital assets without getting exposed to these tokens’ prices.

DeFi Neutral Yields is free and accessible via DeFiLlama. 

“However these are not set and forget farms. They all require active management to ensure the health ratio of your loan stays above water, the final APY of your position is good… But the one piece of APYs awaits those willing to put in the work and take the risk.”

Users can nonetheless narrow down to projects they feel comfortable with using the filter option, which helps sieve out all “sketchy” projects.

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Source: https://invezz.com/news/2022/10/24/defillama-launches-new-strategy-finder-for-defi-yield-farming/