What is this 2021? DeFi making a comeback? My first forays into DeFi were through CubFinance and PancakeSwap. I remember farming and buying CubFinance ($CUB) when it hit highs of $1.8 and $CAKE at $18. Those were insane days, but then the bear market came and obliterated most DeFi tokens -- $CUB is no longer alive and $CAKE is down 90% from its high. Fast forward to early January 2025, I was scrolling YouTube and stumbled upon a video explaining concentrated liquidity pools in DeFi. The idea of setting custom ranges to earn higher rewards sounded like an interesting experiment that I had to get involved.
I immediately shifted some of my capital around and opened three Concentrated Liquidity Pools (CLPs) and further added another CLP as I earned more rewards during the month of February. It hasn't been smooth sailing as my timing wasn't perfect. I got into CLPs on January 31st when ETH was $3300. And as we know, the past month has been brutal with market dips. Nonetheless, my goal is to farm cash flow which I will use to 70% of LP rewards to re-invest back into the existing or new LPs and the remainder 30% will go into the HODL portfolio (ETH, BTC, SOL and HBD). I have been farming for the past 5 weeks, but this week I have decided to start documenting and blogging about my DeFi journey.
CLP -- ETH/USDT -- PancakeSwap, Binance Smart Chain
On PancakeSwap, my WETH/USDC CLP started with a $2,213.00 deposit, with a range set between $1698 and $2997 which equates to a wide 56.8% range. This week, I farmed $24.66, bringing total rewards to $122.67.
- In-Range: ✅
- Range Setup: $1698 - $2997
- Rewards Farmed This Week: $24.66
- Total Rewards: $122.67
- Total Deposits: $2213.00
- Current Value: $1502.15
- Yearly APR: 54.92%
- Price Difference (Inc. Fees): -$588.18 (-26.58%)
CLP -- ETH/USDC -- Aerodrome Finance, Base
My ETH/USDC position on Base has a range set between $1706 and $3108 which equates to a wide 60% range. With a total deposit of $1,663.40, I've earned $126.27 in rewards, with $23.00 claimed this week in fees.
- In-Range: ✅
- Range Setup: $1706 - $3108
- Rewards Farmed This Week: $23.00
- Total Rewards: $126.27
- Total Deposits: $1663.40
- Current Value: $1125.96
- Yearly APR: 74.87%
- Price Difference (Inc. Fees): -$411.17 (-24.72%)
CLP -- SOL/USDC -- Orca, Solana
My SOL/USDC position on Orca has been promising, with a range set between $97 and $180 which equates to a wide 59.4% range. With $856.30 deposited, I earned $23.48 this week, bringing total rewards to $32.97. Staying in range all week boosted returns, and I'm reinvesting rewards to grow this position.
- In-Range: ✅
- Range Setup: $97 - $180
- Rewards Farmed This Week: $23.48
- Total Rewards: $32.97
- Total Deposits: $856.30
- Current Value: $723.38
- Yearly APR: 81.85%
- Price Difference (Inc. Fees): -$99.95 (-11.67%)
CLP -- USDC/cbBTC -- Aerodrome Finance, Base
The USDC/cBTC pair on Base is my smallest position, with a range set between $70604 and $100190 which equates to a wide 35% range. This week, I farmed $0.42, with total rewards at $0.58. I am actively looking to grow this CLP with all earnings yielded from other CLP positions.
- In-Range: ✅
- Range Setup: $70604 - $100190
- Rewards Farmed This Week: $0.42
- Total Rewards: $0.58
- Total Deposits: $80.63
- Current Value: $80.73
- Yearly APR: 25.84%
- Price Difference (Inc. Fees): $0.68 (0.84%)
Concluding Thoughts
Since rediscovering DeFi and CLPs five weeks ago, I've made solid progress. My total deposits across all positions are $4813.33, with a current portfolio value of $3432.22. This week's $71.56 claim reflects my daily DeFi goals: $1, $3, and $5 achieved, with $10, $20, $50, and $100 on the horizon. My flywheel strategy reinvests 70% of rewards into existing and new LPs, with 30% split into HODL portfolio. My timing wasn't exactly perfect as the crypto markets have been on a decline the past month, but the cash flow from these CLPs, bolstered by fees, is building my DeFi portfolio. Staying in range for 7 days straight this week, with no rebalancing needed, has maximised the yields earned.
Thank you for reading and hope you have a good rest of the day!
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