🌊 STRATEGY TO LEVERAGE LIQUIDITY CHANNELS AND DERIVATIVES $AVAX ON DEFI! 💥
👇 3 STEPS OF ANALYSIS AND PLANNING TO OPTIMIZE PROFIT AND CONTROL RISK IN THE ECOSYSTEM!
1️⃣ ANALYZE AND TAKE ADVANTAGE OF YIELD FARMING OPPORTUNITIES 💰
Analysis: Evaluate Total Value Locked (TVL) and Annual Percentage Yield (APY) of liquidity pairs related to AVAX on top DEXs of Avalanche. 📈
Plan: Allocate a portion of AVAX into reputable liquidity pairs (e.g., AVAX/Stablecoin) to earn additional trading fees and reward tokens (Yield Farming). Always monitor the risk of impermanent loss.
2️⃣ LEVERAGE MANAGEMENT STRATEGY AND LIQUIDATION ON LOAN PROTOCOLS 🏦
Analysis: Use AVAX as collateral to borrow Stablecoin and buy more AVAX (Leveraged Long) or use Stablecoin to buy AVAX when the price drops. 🚨
Plan: Set a very safe Liquidation Price threshold, far from the current market price. Repay part of the loan or add collateral as soon as the AVAX price drops to a predefined risk threshold.
3️⃣ ANALYZE AND RESPOND TO BRIDGE DYNAMICS 🌉
Analysis: Monitor the inflow/outflow of capital from bridges connecting Avalanche with Ethereum or other Layer 1s. Inflow of capital is a positive signal for the ecosystem. 🔗
Plan: Inflows of Stablecoin and large tokens into Avalanche indicate increasing liquidity. This is a good time to strengthen positions in DeFi projects within the AVAX ecosystem.
