I would loosely divide DeFi-ish "yield farming" strategies into two groups: active and passive ones, depending on how much of our attention a strategy demands in order to stay profitable.
My Lazy Venus is about leveraging stablecoins on BSC, a very simple and passive strategy. The main downside is that we need quite a lot of time and a pretty large depo to cover the fees (since recently BSC fees have become rather expensive) and earn something.
- I deposit e.g. 1000 USDT into Venus at ~1% APY, and use it as collateral;
- Then I borrow about 75% i.e. 750 USDC at ~3%;
- Then I deposit those 750 USDC into AcryptoS at ~10% APY at the time of writing. The Acryptos guys do the same thing: they deposit USDC into Venus, borrow, and deposit again building up like a 3x-leveraged position.
The good thing about Venus is that both deposit and borrowing amounts earn XVS as well, and claimed XVS can be staked or sold. The good thing about AcryptoS is that the guys seem to know what they're doing and not going to pull the rug soon. I can relatively well sleep at night, without worries about "impermanent losses" and liquidations.
The bad thing is that Venus was pretty well fucked recently. Besides, Venus lowered XVS distribution rate, and the price of XVS itself fell down quite considerably. It all affected APY very negatively.
Needless to say, DeFi and yield farming are rather risky in general, and large-depo low-profit strategies may not be the best idea. Unfortunately, I still don't have enough time for active farming. I can only hope that my Venus will go as planned, I can leave my 1000 USDT there for a year or so. Maybe the next bull run XVS will go above $100 again...