As decentralized finance started a wave of liquid providing to get an annual yield of more than 100% interest returning, how could Bitcoin Cash participate in the investing while few swaps supported bch tokens and pairings?
An idea came to my mind from the lending platform. Liquid provider deposit stable coin like USDT, USDC into the liquid pool to gain the platform token, while Curve uses the swap token to deposit in their own pool to get CRV, that is how you gain the interest from depositing USDT from the first place. However there is few swap or pool that could deposit or swap BCH directly, we need to find a way to convert BCH to USDT without causing value lost while the BCH-USDT price goes up.
A simple way to solve it is to find a lending platform to deposit BCH and borrow 60-65% amount of USDT, at the same time short BCH to hedge the risk of price dropping to avoid the margin call, at the same time invest USDT into the liquid pool to gain your good profit.
A few tips:
- The lending platform should support short-term lending, since you don't know how long Defi wave would last
- Sell the Defi token ex. crv, sushi as soon as it is farmed
- Gas fee is comparatively high, this way is not friendly to small investor
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source https://www.reddit.com/r/btc/comments/ipc4if/can_bitcoin_cash_participate_in_the_defi_deposit/
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