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Lending Markets and Credit Risk·Lesson 15 of 31·23 min

Lending Strategies and Yield Farming

This lesson is for enrolled learners

The concept The simplest lending-market strategy is passive: supply an asset, earn the algorithmic supply APY from the prior lessons, done. The more advanced — and more commonly marketed — strategy is looped (leveraged) yield farming: deposit an asset as collateral, borrow against it, swap or directly redeposit the borrowed asset as additional collateral of the same or a correlated……

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