A good DeFi strategy:
1. Stake x $LIT, annualized yield 12.8% (expected yield to decrease).
2. Short the same amount of $LIT and earn funds, annualized yield 10.5% (average yield over 20% in the past month, but remember this token is newly launched).
Two weeks later, you can use LLP as collateral for trading (20% annualized yield). Assuming an LTV of 80% and you have $20,000:
1. Buy $8,000 worth of spot $LIT and stake it.
2. Invest $12,000 in LLP (earning a 20% annualized yield, but the actual annualized yield will fluctuate and may result in short-term losses).
3. Short $8,000 worth of $LIT (same funds as step 2).
Therefore, you will receive a 20% annualized return + 10% of the return on the $12,000 investment + 12.8% of the return on the $8,000 investment = a 23% return.
If you find any errors, please let me know and I will correct them.