Mastering On-Chain Returns: Insights from a $500M Profit Wallet

In the ever-evolving world of blockchain, it's been shown that even in high interest rate scenarios, on-chain returns can be successfully generated. A prime illustration of this is a specific wallet holder with over $30 million in assets, who has astoundingly raked in profits exceeding $500 million this year alone. Interestingly, their spot holdings are relatively nominal, standing at around $400,000.

The true essence of their strategy lies in their DeFi maneuvers. Let's break down the numbers:

- Credit positions stand at a hefty $33.85 million.

- In contrast, Debt positions are about $3.3 million.

The allocation in various platforms is intriguing:

- On @AaveAavev3, $14 million of $DAI has been lent.

- Over at @MakerDAO, $12 million $DAI is staked as sDAI.

- With @LybraFinance, there's $4.8 million of $stETH used as collateral to borrow $2.7 million of eUSD.

- Involvement with @PrismaFi sees them as an LP with $379,000 in the mkUSD-crvUSD pool, and also $480,000 frxETH as collateral to borrow $190,000 mkUSD.

- They are also engaged in lending USDC on @VenusProtocol and have further lending activities on Aave v3 and Compound v3.

- Their strategies extend to farming on platforms like @aerodromefi and @eigenlayer.

In terms of net flows, this wallet has observed an upward movement of over $500 million in the past half-year, primarily in assets like $USDC, $USDT, and $stETH.

Some key insights we can infer from this wallet's strategy:

- Yield generation can serve as a buffer during bearish phases in the market.

- LSDfi stablecoins, such as Lybra and Prisma, offer a relatively safe route to tap into ETH yields.

- sDAI emerges as a straightforward method to achieve T-Bill yields on-chain.

- Platforms like Eigenlayer also provide opportunities for T-Bill yields.

- Engaging in airdrop farming with trending protocols, like Prisma and Eigenlayer, can be fruitful if maneuvered adeptly.

However, a word of caution: While these insights provide a captivating glimpse into one user's successful strategies, it's paramount to approach these as entertainment. Always conduct your research and seek professional advice before making investment decisions.