A CRAZY method to get 30% on your stable coins. DEFI is wild

Hey, this is James Pelton, and today I just wanted to do a quick video about just something cool. I just kinda wanna get you to be thinking about the DeFi space and just different ways that you can move your money around to get more potential. So this is a way that you can get actually about a 30% return on your stable coins. So that's better than the 20% that we get through the anchor protocol, but this is a little bit more complicated. So I'll still probably do most of my money in the anchor protocol for the easy 20%, but this is just as safe. It's on stable coins, but you get around a 30%, but you have to jump through some hoops. So I was on this website, solend.fi, and they provide rewards for you supplying. Like if you supply tether, they'll give you 9%, 8.68% on that, which is, that's not bad. It's not exceptionally good, but it's not bad either. But what I really noticed was you can also borrow out USDT at a super low rate. And the way that you can borrow it at such a low rate is that you're borrowing for 10.64%, but they give you 9.68% in their token rewards, SLND rewards. So it ends up that you get this tether for 0.96%, okay? So you can borrow up to 75% of what you have staked for essentially 0.97% APY. So what this does is it opens you up so that you can deposit tether, get your 8.65%, borrow up to 75% of that back out, and then get another 8.65%, okay? So I made a spreadsheet here to kind of show you how the math works out when you do this. So you basically, you're looping your money. This is, DeFi is very crazy. When you take out banks and you take out fees, you can do some just crazy stuff. So if you put in $1,000, and actually these numbers have changed since I made this spreadsheet, it's 8.65% that you're getting for staking. And the borrow APY is now at 0.96. So you have to kind of keep your eye on this because these numbers could change, and then look, it's not as, and actually, that's 96%. I need to put 0.96%. 0.0096, there we go, that should fix it. So basically what you do, if you're putting in $1,000, so the first time around, you're not borrowing anything. You're just getting your 8.65, and you're getting $86.50 of interest, okay? Then the second, the first loop, you're borrowing, you can borrow up to 75% of that $1,000. So now you have 17.50 that you're putting in, and you're getting a total of 14, because now you're getting another 8.65 on that extra 7.50. So you're getting a total of 14.42% because you're also subtracting the 0.96% on the 7.50 that you're borrowing, okay? So that's pretty complicated. But spreadsheet here, these numbers, I think they're correct. I'm gonna do a test here with $1,000, but I think this should work out. So that's your first loop through. The second loop through, you can't borrow quite as much because you can only borrow 75% of the total collateral that you have in, and so now 75% of what you have left is 5.62, and so when you take the 8.65% on that extra 5.62 and subtract the 0.96% for the loan that you're taking out, then you loop a third time, and you loop a fourth time, and a fifth time, and a sixth time, and a seventh time. Eventually, you can get up. At some point here, it might not be worth it, because it is quite a bit of work each time you do this. So this, to do eight loops would probably take me half an hour, probably, just to keep doing it. So maybe I'd stop here at the 27%, but you can get this 27%, and there's a couple other things. Some of this is gonna be in SLND rewards, so I'm gonna have to remember to go in and sell those. So I don't, this isn't a particularly good strategy, okay? I'm not gonna add it to my list of strategies, but more so, I just want to get you thinking and to kind of show you the power of different things, and this is fairly safe, because it's just a stable coin, right? So these are numbers, see, you notice here, you actually, if you borrow ETH from them, they actually pay you 6.16% to borrow their ETH. But that's not necessarily safe, because the price of ETH could go way up, could go way down, and you could not work in your favor to do this. It might be okay, but if the price of ETH ends up going way down, then you'll be in the hole a little bit, right? So, but with a stable coin, this is pretty safe, and I think it's just a fun, fun way to work with DeFi, and I just want to get you thinking along these lines. So I hope that's interesting to you. Feel free to give it a try. I'll probably put 1,000 bucks in and just see if I'm getting these numbers, and maybe if it's not too much work, if I get the hang of it, maybe I'll put in something bigger. But yeah, I just thought it was something kind of fun to do, so thanks, and enjoy the DeFi.