Exploring Low-Risk Investment Strategies: A Week One Update on $MLP, GND, and GMX
In this thread I presented the 3 strategies I am now following with around $500 each:
I am too excited about these, so in this article I will share a first update after one week.
You will find this in the end. But first let’s have a look at these strategies in a little bit more detail.
First: Delta Neutral on Morphex on Fantom Foundation chain
I explain this in detail here:
Idea: Buy $MLP which is an index of $FTM, $BTC and $ETH. Buy equivalent shorts to cover. Get paid in fees from Morphex and due to funding rate on Kucoin currently also for having the shorts open.
Status 8.7.23:
Shorts PNL: +$43.31
wMLP: $574.28
Total: -$12.78
There is currently a problem with the Multichain (Previously Anyswap) bridge and $FTM is at an all-time low. The weight of $FTM in the pool is currently at 2.61% of a target of 21%. This means the FTM short cannot cover all the loss. This volatile index is a problem of this strategy and why I am diversifying in GMX on Arbitrum as well.
The APR is still 73% in FTM and 106% in esMPX, therefore it should balance out the downturn in the future.
Second: The boring strategy on GND Protocol
I just put $500 into the USDC vault on GND.
There was a 0.5% deposit fee because GLP is minted in the background. This strategy currently earns 11.63% APY.
Status 8.7.23:
Deposit: $498.84
Total: -$1.16
I recommend this strategy as it is completely hands-off passive. Your risk is mostly on smart contracts after you paid the 0.5% deposit fee. Which for me should be around next week.
Third: The stable GMX $GLP strategy
I was intrigued to try the Morphex Strategy on the most established player in the Derivatives market: GMX. The have been a real-yield and fees powerhouse. Also their index is much more stable than Morphex, the fork on Fantom.
There are, however two problems with this strategy:
There is one more addition in GLP compared to Morphex and that is $UNI and $LINK. Luckily they only make up 0.60% of the index each, with a target of 1%. I will just ignore these two instead of shorting them as well. This simplifies the strategy, as I only have to short $BTC and $ETH. With a longer time horizon for this strategy I shold be fine, even in the very unlikely event these two coins go to (near) zero.
The other problem is the advent of GMX GLP v2. There is a nice detail thread about it, however I have not seen any migration plans yet.
My strategy also targets a longer time frame, as we use Pendle Team and Yield Optimizer Magpie Protocol’s Penpie on top.
Total capital: $500. $400 in GLP, $100 for leveraged shorts on Kucoin.
I decided to put 50% of the GLP capital into Pendle and then lock it on Penpie for currently 30% APR in $PNP, $PENDLE and $WETH.
Status 8.7.23:
Deposit: $466
Profit: $1.84 or 0.39%
This strategy is already profitable after a week. The next issue will be to compound the different rewards. I would need more capital to make the transactions worth it, even with the low fees on Arbitrum.
And that’s it for today!
How do you like these strategies, will you try any of them?
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Have a great day people!
n1ce
