@Hemi $HEMI #Hemi Last year's experience with Ethereum DeFi still stings me – I invested 8 BTC in a DEX market-making scheme, seemingly making 0.4 BTC in three months, only to have it wiped out by 0.6 BTC impermanent loss, leaving me with a 0.2 BTC penalty. Even more frustrating was trying to transfer to other protocols to recoup the losses; on-chain operations were incredibly slow, gas fees were exorbitant, and by the time I finished, the market had already cooled down. That's when I realized traditional DeFi wasn't about investment; it was about "isolated protocols being treated like韭菜 (a metaphor for easily exploited investors), with no risk to be taken advantage of."
Until this year, when I built a 35 BTC multi-protocol interconnected pool on Hemi, I finally understood how to make money in DeFi. It's not just about staking on a different protocol; it's about turning assets into an "automatically hedging money-making machine." Now I consistently earn 1.1 BTC per month, without experiencing impermanent loss or even a liquidation warning. I initially made some mistakes. In January, attracted by Hemi's "seamless cross-protocol scheduling," I first tested the waters with 10 BTC converted into hemiBTC: 2 for Aster DEX market making (APY 14%), 3 for Ploutos with 1.5x leverage (APY 18%), and 5 for the Merkl aggregation pool (APY 16%). I was quite happy with the 0.13 BTC profit in the first month, but I was quickly disappointed—Aster's impermanent loss swallowed 0.08 BTC, and the leveraged returns from Ploutos shrank due to market volatility, making it less profitable than investing solely in Merkl. That's when I realized: simply diversifying your investments isn't enough; you need to tie the baskets together to create a "shock-resistant combination," and Hemi's hVM contract was that rope.
The hVM dynamic hedging contract, which I spent two weeks developing, became my "risk firewall." Its core rules are simple: if impermanent loss exceeds 2%, immediately transfer 30% of the protocol's assets to the low-volatility RWA pool; if the PoP hashrate drops below 580 EH/s (a signal of market panic), immediately reduce leverage and transfer to a hashrate sharing pool to cover losses. In March, BTC fell from 310,000 to 270,000, Aster's impermanent loss soared to 2.3%, and the PoP hashrate also dropped to 575 EH/s. The contract immediately activated: 3 BTC from Aster were transferred to the RWA pool, Plutos leverage was reduced to 1.2x, and 10 BTC from Merkl were moved to the PoP pool. In the end, not only did we avoid losses, but the fixed returns from RWA and PoP sharing even replenished 0.05 BTC. In traditional DeFi, this would have been crushed by impermanent loss and liquidation long ago.
What truly doubled my returns was Fusaka NFT's "equity fission." I spent 1.2 BTC to bid on an Epic-level NFT, staked 15 BTC, and it generated 3 child NFTs. I authorized these to three active users, each contributing 5 BTC to my pool, and I took a 15% cut. Each of these three users earns 0.04 BTC per month, and I passively earn an extra 0.018 BTC. Even better, the child NFTs' earnings are fully synchronized to the parent NFT. This particular NFT has now risen to 1.8 BTC on the secondary market, earning me 0.05 BTC per month just from the appreciation in value—essentially free money.
The "double safety net" of PoP computing power completely cured my "liquidation anxiety." In traditional DeFi, a leveraged position of 8 BTC would be liquidated if the market price dropped by 10%. However, Ploutos' leverage is tied to the PoP hashrate: the higher the hashrate, the more lenient the liquidation threshold. At 600 EH/s, the threshold was 105%, and at 550 EH/s, it widened to 125%. In May, when BTC experienced a flash crash of 12%, the PoP hashrate was exactly at 590 EH/s, and the liquidation threshold automatically adjusted to 110%, giving my position an extra 5% safety margin. In April, there was a small fluctuation that almost resulted in liquidation of 0.5 BTC, but I was able to recover 0.4 BTC thanks to the PoP risk reserve, only losing 0.1 BTC – something unthinkable in traditional DeFi.
My 35 BTC pool now has a very clear source of income, with every penny recorded on-chain: 0.431 BTC monthly from core protocols like Aster market making and Plutos leverage; 0.068 BTC from NFT fission and value appreciation; 15 BTC participating in PoP hashrate sharing, partnering with 7 top miners for a 40% share, earning 0.32 BTC monthly; plus 0.29 BTC from Platinum-level DAO dividends; after deducting contract gas and transaction fees, I'm guaranteed a net profit of 1.1 BTC.
There was a minor hiccup with the Merkl aggregation pool temporarily lowering its APY, but fortunately, the hVM contract has a "3-second automatic migration" function. My 5 BTC were immediately transferred to the newly launched BTC mining equipment collateralized RWA pool, boosting the APY to 19%, not only making up the difference but also earning an extra 0.005 BTC. Later, I added "RWA-DeFi Dual-Track Hedging," using 30% of my RWA earnings to stake HEMI in the DAO. Dividends were then used to buy back hemiBTC to replenish the leverage pool. In July, the DAO dividend increased from 0.29 BTC to 0.32 BTC.
Recently, I've been forming an alliance with two other pools with over 25 BTC each. Next month, we'll merge them into a large pool of 85 BTC, increasing the PoP profit sharing ratio from 40% to 50%, and the monthly yield is expected to exceed 1.5 BTC.Looking back at Hemi's greatest strength, it's how it seamlessly integrates Bitcoin hash power, multi-protocol revenue, and NFT equity into a closed loop: hVM contracts break down protocol barriers, allowing assets to "escape risk"; PoP hash power provides a safety net, making liquidation a low-probability event; and NFT fission amplifies returns, enabling equity to "generate wealth." For those holding large amounts of BTC, this is true DeFi value creation—no need to gamble on market movements, no fear of impermanent loss, just set up your pool and rely on the ecosystem mechanism to continuously earn BTC, far more reliable than the high-risk gameplay of traditional DeFi.
What impermanent loss pitfalls have you encountered in traditional DeFi? If you have a large amount of BTC...


