I recently increased the configuration weight of Onre and plan to build positions gradually.
I previously tested a plan where I invested 400u and then stopped— that was the first version of the exploration. Now the focus is on using the cyclic lending strategy on Kamino, which yields more interesting results.
The mechanism is actually not complicated: using ONyc as collateral, borrowing USDC to continue buying ONyc, forming a closed loop. The key is that the returns generated by ONyc itself are higher than the interest on USDC loans, which allows the final yield to be amplified to around 20%. In simple terms, it leverages the basic returns through leverage effects.
This strategy is still attractive for those who believe in the long-term development of the project — it can increase exposure and optimize returns through arbitrage of the spread. However, risks must also be carefully considered, as this high-leverage strategy requires close attention to collateralization ratios and liquidation thresholds.
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ZKProofster
· 23h ago
honestly the math checks out but you're basically betting the farm on onre not dumping, yeah? like sure 20% apy looks nice on paper until liquidation happens at 3am and you're not watching the collateral ratio. been there, seen people get rekt on kamino when a single bad candle wipes out weeks of gains. the leverage game always looks elegant until it doesn't.
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DAOdreamer
· 01-11 16:48
Oh no, a 20% return sounds a bit risky, and the liquidation line really needs to be watched closely.
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PositionPhobia
· 01-11 16:48
A 20% return sounds great, but you really have to keep a close eye on the liquidation line.
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OnchainHolmes
· 01-11 16:42
20% returns sound great, but the liquidation line is really a sleep killer at night.
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WhaleInTraining
· 01-11 16:40
A 20% return sounds good, but the liquidation line really needs to be watched closely; otherwise, a sudden crash could lead to liquidation.
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Rugpull幸存者
· 01-11 16:31
A 20% return sounds good, but can this leverage strategy really withstand a bear market?
I mean, if ONyc suddenly plunges, will the liquidation line be triggered in a matter of minutes? By then, it might be too late to optimize. But since you're building your position in batches, at least your approach is relatively prudent.
The initial trial and error with 400u isn't a loss, and I approve of doubling down with more care. Just keep a close eye on the collateral ratio; if you're not careful, you'll end up holding the bag.
I recently increased the configuration weight of Onre and plan to build positions gradually.
I previously tested a plan where I invested 400u and then stopped— that was the first version of the exploration. Now the focus is on using the cyclic lending strategy on Kamino, which yields more interesting results.
The mechanism is actually not complicated: using ONyc as collateral, borrowing USDC to continue buying ONyc, forming a closed loop. The key is that the returns generated by ONyc itself are higher than the interest on USDC loans, which allows the final yield to be amplified to around 20%. In simple terms, it leverages the basic returns through leverage effects.
This strategy is still attractive for those who believe in the long-term development of the project — it can increase exposure and optimize returns through arbitrage of the spread. However, risks must also be carefully considered, as this high-leverage strategy requires close attention to collateralization ratios and liquidation thresholds.