Why MaxFi plus Robinhood Chain looks like the best thing in DeFi right now
This is some of the best I see happening in crypto DeFi today, and the big reason is that two things have come together at the same time. First, MaxFi has figured out how to make rebalancing more efficient with their more efficient rebalancing system. They have an incredible DeFi app set up, and I am going to walk through exactly what I am earning on it. Second, Robinhood Chain launched fairly recently. So I am providing liquidity on Robinhood Chain, where it seems there is a lot of trading activity, with people wanting to swap coins back and forth, but not a lot of liquidity being provided yet. That combination is why my CashCat and wrapped ETH position is just printing money, along with several other meme coin positions I have opened. If you want to try it yourself, you can join MaxFi through my referral link.
There are a ton of other things on Robinhood Chain that you can provide liquidity for, and I am testing out all kinds of different pools to see what works the best and what actually earns. One thing that is interesting is that you can have some impermanent loss in the position value, so I am curious to see how the earnings rate compares against compounding some of the earnings back into the position value over time. Right now, it looks very promising.
What my meme coin positions earned in a single day
Here is an example: one coin I put $100 into yesterday has earned 2% in fees. If you subtract the value I lost on the position, it has still earned a little less than 2% net in a single day. And that is one of the lower earners out of these positions. With Clippy, another meme coin, I did the same thing yesterday, and it has earned a net of 1% after subtracting the change in position value. The earnings then compound back into the position value, so if a coin goes up a lot, the position can compound and get even bigger.
The risks and my position-size rule
The downside, of course, is that you can lose money. Some of these are meme coins, there are lots of underlying dependencies, and there are Ethereum gas fees on here too. So far, I have certainly lost money setting all of these positions up, because I paid about a dollar in Ethereum gas fees for each position and to swap the tokens. But what I am seeing is that if I just leave this running, it looks like many of these are going to keep printing money.
Especially for the meme coins, these are risky, and any of them could suddenly crash. If one did crash, my position value could unwind completely along with it. That is why I am not putting more than about $100 or $200 into any individual position. That way, if it does crash, I do not lose that much, while the yield these positions are getting should, over time, far outweigh the amount I am putting in. In total I have put in about $1,200, my earnings have already exceeded that starting amount, and most of the earnings remain uncollected. In other words, I have made profits just getting started, barely 24 hours after learning how to do this. I have watched Blockchain Pill and the MaxFi team, who have a lot of positions, and they are printing a lot of money on here.
My Base positions and the Zora rebalancing
I have also tested Base, and right now, at least, my Base positions are not doing nearly as well. They are less risky, though, and they are still making money. On Base I put in about $900, and some of my positions are down a little bit, mainly the Zora and USDC position. I started that one off with USDC, the price plowed straight through the position, and I basically got converted all the way into Zora. Since then it has rebalanced four times. I have two of those Zora positions, and one of them has rebalanced all the way through into Zora.
After the hours of research and getting all of this set up, it looks like a big opportunity to earn, and I am very interested in doing that instead of just letting my money sit there hoping the price goes up. To me, if prices go up, my portfolio goes up with them. And even if prices go down, I am earning fees. Throughout the natural volatility of the ups and downs, I am earning fees the entire time. Right now the dashboard says I should be earning $72 a day.
The referral program and earning through volatility
If you want to earn alongside me, you can join MaxFi through my referral link. When you join through my link, I get 3% of the fees you generate for life. That is a percentage the platform would take anyway, so it does not come out of your percentage at all. And once you are in, it is something you can refer other people to as well, so you can build your own referrals the same way. I will keep you updated on how this works over time.
I am documenting more of what I am learning about crypto and DeFi in my Crypto Reviews playlist, and this MaxFi experiment is going to be a big part of it. None of this is financial advice; it is simply what I am seeing in my own positions as a DeFi beginner.
Right now I have about $1,200 in, and I am in profit almost immediately. This does take a significant amount of effort, though. It has taken me hours to set up: getting a MetaMask wallet, moving things from Coinbase to Base to Robinhood Chain, and swapping all of it. In the process I have probably lost at least $30 to $50 in swaps and fees. But now that it is running, it should start printing seriously every single day, and I will keep creating videos documenting my journey on MaxFi.