Going to answer my own question here in a 🧵
The idea is to generate between $150k-$250k in income per year with no large drawdowns (let's define as > 15% or $75k) with a $500k crypto nest egg.
That's between $410 (8 bps) and $685 (14 bps) per day.
Sustainably.
👇
2/6
To do this with size sustainably, a key is to make sure all of your money is working for you, even if some isn't earning 30%.
To that point, I'm tracking down the highest USDC-deposit yields I can find on platforms with low(ish) protocol risk.
Even still, I'm limiting those to 15% per protocol and 45% in the aggregate.
I'm trying to find protocols that at least appear to have some support from the respective chain.
Let's assume we get 18% on these.
@YeiFinance is the first that comes to mind. Yield is 13.1%, but you can loop the supply/borrow arbitrage to pick up the additional 5%
I'll pick up as much sweat equity as I can by rotating these funds to whatever site has the best promo APR.
Total:
$225k Deployed
$111.94 Income/day
3/6
I'm going to want some exposure to ETH and SOL. I'm going to do like a @jito_sol (7.9%) and @LidoFinance (3.5%).
I'm not going to assume any appreciation on the ETH or SOL.
Total:
$225k Deployed
$30.62 Income/Day
4/6
That leaves between $272.47 and $546.44 per day and only $50k to do it with.
You're not going to get there without an active strategy.
For that, I'm headed to @MeteoraAG. I'm providing liquidity on multiple tokens.
I'm shooting for AT LEAST 2%/day in fees ($1k) on average, which gives me room for rebalancing and such.
Coins like $LAUNCHCOIN have been reliable in providing at least that, but I'm still diversifying this across multiple tokens and making the size of my pools based on risk.
5/6
Bankroll management. You're going to have good days and bad days. Outside of safety, here are my priorities
Priority #1 - Pay Yourself
If I'm trying to pay myself by withdrawing at least $150k/year, I'm pulling as much as $1k/day off the table on good days.
It stays off the table.
Priority #2 - Active Bankroll
I'm trying to keep at least $50k in my LP bucket.
Priority #3 - Balance
I'm trying to keep the distribution of USDC/SOL/ETH approximately static at 50% USDC, 33% ETH, 17% SOL.
I'll rebalance that as SOL and ETH depreciation/appreciate, or if, god forbid, I lose one of the protocols.
I'm not compounding the USDC protocols. I'm taking that distribution.
6/6
I'll be very cautious with my 'trades'. If I find something that screams alpha, I'll take funds from the LP account to execute.
Okay. I went first.
Now it's your turn.
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