Meeting the Number One Liquidity Provider in Crypto
I'm here today with the MaxFi Tech team, which is currently number one in — what did you say — liquidity providers? "We're the number one liquidity provider in all of crypto," they told me. "Number one, beyond Beefy, VFAT, all the liquidity managers. We beat them all." That's pretty amazing, because they're pretty new at MaxFi Tech and Snuggle Fi. They've made a way to get everything more efficient with liquidity to pay out their users more, and people are making a lot of money on this. So I appreciate them sponsoring this video.
I started with the basics, because the average person doesn't even know about liquidity providing — they're like me, just sitting there taking 6% on ICP or less than that on an exchange or something. For the basic person who doesn't know anything: what is MaxFi? What is liquidity providing, and how are they generating the money they're making? And then for the more advanced person after that: what are they doing different that everybody else isn't doing?
What Liquidity Providing Actually Is
Alex handled that one. For those who don't know what liquidity provisioning or liquidity farming is, he explained, it's basically becoming a market maker for crypto assets — tokens — on blockchains like Base chain and now Robinhood Chain. What they do is facilitate the swaps between these tokens. They allow people to buy or sell different assets on the blockchain. This has been around since 2017, back in the Bancor days, and then in 2018 Uniswap came out with their liquidity systems on their decentralized exchanges.
From a user perspective, a decentralized exchange allows anybody in the world to be a liquidity provider. They can take their assets, put them in a liquidity pool, and facilitate those trades back and forth. And they earn a small commission called a swap fee every time someone buys or sells in their liquidity pool. Alex gave an example: let's say you're on Base chain and you want to sell your ICP for USDC, one of the biggest stablecoins. You want to take your profits because, let's say, ICP just pumped 20x. When you sell your ICP to take your profits and swap it for USDC on Base chain, all the liquidity providers — many of them on MaxFi — will earn a small, tiny swap fee from the decentralized exchange Uniswap. So the fees are generated by the DEXs, the decentralized exchanges like Uniswap, and they get passed on to the liquidity providers.
Now, with concentrated liquidity positions — which have been around since 2021, when Uniswap came out with this, and everybody's doing it now — there's a more capital efficient way to earn more as a liquidity provider. You can take your liquidity and, instead of providing it across the full range of the price spectrum, you can concentrate it to a smaller trading range, say 10% of the price around where the price currently is. If it's trading in there, and you've concentrated your liquidity 10x, you earn 10x the fees doing it that way. But there are some problems inherently, intrinsically associated with concentrated liquidity position management — and that's where Alex was headed next.
Let me just stop there like I did in the conversation, for people who are still asking what he means by liquidity. I have ICP, and if I have USDC, those are liquid crypto I could do anything with. With liquidity providing, if you use MaxFi Tech, you put your ICP or your USDC or your Ether — whatever you've got — into the liquidity pool, and then you're providing the liquidity so that when other people come with one coin and want to swap to another coin, you're essentially providing the coin they're going to swap into, and you're essentially taking the coin they're swapping out of. That's what happens when you click on swap in MetaMask and you see the fees that are generated. So if you're a total noob: liquidity providing is just taking your crypto, providing it to a protocol like MaxFi Tech, they've got the liquidity and they swap it with people who are swapping on decentralized exchanges, and then you get a part of the fees. That's the basics.
Snuggle Rebalancing: The Advanced Answer
Then I asked the advanced question. They seem to have something pretty unique set up that's generating a lot of fees — eight million dollars TVL, and their TVL has grown like crazy lately, but it's still much smaller than a lot of the bigger platforms. And yet they're generating more fees. How are they doing that?
Alex said it's because of capital efficiency and those intrinsic issues with concentrated liquidity position management, which they solved with snuggle rebalancing technology. He's been teaching snuggle rebalancing — a technique to rebalance your liquidity position when the price goes out of your range. Traditionally, you would swap half your tokens for the other half and boom, you're back in range earning fees again. But when you do that, you take on a bunch of hidden costs: the swap fee itself, which you pay to the other liquidity providers when you do that swap, plus slippage, price impact, and MEV extraction on the swap itself. And then the big elephant in the room: realized impermanent loss across rebalances, which is about 50% higher when you do a traditional rebalance compared to a snuggle rebalance.
A snuggle rebalance is a no-swap rebalancing technique that has been taught for years in private investor groups like the Underdog Investor Group, where Alex has been a coach for the last two to three years, teaching people with six and seven figure portfolios how to do this. Before they learned this technique, when they would rebalance they'd be paying $10,000 at a time just to get back into range earning fees again. That's horrible. It's crazy. Say you've got a million dollars in a liquidity pool and you have to pay a 0.3% swap fee, then you get hit with a lot of slippage, price impact, and MEV extraction — you don't want to swap that big. It could cost you $10,000, maybe more, every rebalance event. And if you're doing this on an automated platform, they often charge a protocol fee on top of that on the principal of your position — not on the performance, not on the fees, but on the principal. So it cannibalizes your principal very quickly doing it that way.
There's a much better, more capital efficient way, which is snuggle rebalancing. Alex taught these people, and he'd been doing it for his own portfolio for years — manually. It would take about 10 to 20 hours a week to manage a handful of liquidity positions this way. And it was worth it; the money's great. It's like the best way to generate passive income — but when you're doing it manually, 10 to 20 hours a week isn't so passive.
So what Alex did was automate this snuggle rebalancing technique on the blockchain. He added in a rebalance delay plus 50/50 auto compounding, where half of the tokens get compounded back into the position and the other half gets sent to your wallet passively. This all runs on autopilot, and they cover all the gas costs for all the rebalances. You can set up your liquidity positions and just let them go, then check in on them and see how much money you made today — just look in your wallet. They have people now using this with hundreds of positions, which was impossible before on autopilot like this. And it's doing it in the most capital efficient way, one that removes all those hidden costs and drastically reduces realized impermanent loss across rebalances.
As Aaron always says, capital flows to the most capital efficient systems. As soon as people caught wind of this, money just started flowing into their system. And as they're using it, they're able to concentrate their ranges tighter because they can sustain more rebalances than anywhere else. Because of that, they're generating higher fees — concentrating tighter, generating crazy amounts of fees dollar per dollar of TVL that they put in the pool. If they were doing this on another system, or on the DEX itself, they couldn't get these same numbers. And that's why, for $8 million of TVL, their users are earning more fees cumulatively than older traditional systems that have over $100 million in them. Jeez.
The Numbers: $383,000 to Users in One Week
Then Aaron talked about some of the numbers he'd just been calculating. "It's crazy — I was actually running them last night," he said. They've made their users $383,000 in the last seven days. Yesterday was their biggest day: about $95,000 in fees given back to the community. That's another reason their TVL is growing — because people are making so much money, they're just throwing more in and opening up new pairs, making more money, compounding their wealth. $383,000 coming into the system in one week is insane. And with $8 million TVL locked, that's just a little under 5% of their whole TVL in fees in a week. It's a great number.
A lot of people do take it out, too. Aaron mentioned Blockchain Pill took out like $800. They know another guy who's on a vacation in the Mediterranean who said MaxFi paid for it. There were a bunch of other people saying this is replacing their salaries now — they're going to try to find something they really like to do instead of a job. So it's definitely revolutionary. But compare them to Beefy: Beefy did $199,000 in the last seven days, and they did that on over $113 million. When Aaron ran the numbers, it said MaxFi is 14 times more capital efficient than Beefy.
Part of that, Aaron thinks, is him and Alex educating people, because they have a YouTube channel called Passive Income Labs where they actually educate you and show you the pairs to go into — they show you where the money is. Alex is using an AI agent called Agent Max that goes and finds the best pools, and they tell the community: go here, go there, these are the best places you can earn the most yields. By telling people the ranges and giving the data — no one has done this. And they're able to do it because of the way the snuggle rebalancing works. Aaron said what Alex has done is revolutionize the LP space and make it so everyday people can now become market makers and become very, very profitable.
The way I summarized it back to them: in the way that space normally works, people just show up with their money and kind of throw it into different positions, don't know what they're doing, don't make that many fees, and sit in impermanent loss. What MaxFi is doing is a more efficient rebalancing system, with all different kinds of pools and pairs, and on top of that they're showing their users, hey, these are the ones where there's opportunities.
Cover Value and Agent Max
Because, like so many things, if you pick the right pools with the right pair of coins, you're in a position to make lots of money. Aaron told me Alex also made something called cover value, which wasn't available before he invented it. What cover value is: you can go into a certain pool and know the fees will cover any impermanent loss. The cover value can be a 3x, a 5x, a 10x, a 6x — the higher the cover value, the more of the impermanent loss you cover. No one had this data before. No one was providing this data. No one has this data. Alex had to invent it because he was teaching this. So that added another layer.
Pretty soon their Agent Max is going to have all this data listed, and you'll be able to literally go to the website, click the positions you want — Agent Max already has the position open with the rate — and you click it, one click, and boom, it's open for you. They have another solution coming in a few weeks that will make it even easier. They're actually trying to make liquidity provisioning so easy that people don't even need to know anything; the data and the homework is being done by their AI agent.
My thought was: why aren't other people doing more of this? All the places I've done liquidity, it was difficult. There was no guidance, and the best you could do on fees was look at the top performing pools and try to pick them — but you'd miss the smaller opportunities doing that.
Aaron had the same problem. He stopped liquidity providing last year because he got wrecked on a couple of pools on Aerodrome, and it didn't make sense. He got wrecked on those even though he made a lot of money on the blue chip ones — BNB/ETH, BTC/ETH he's done great on over the years, done four or five Xs on them. But when you get to the smaller ones, they become really complicated. Unless you have the right system, he realized, and the right data — you have to have the data — it's just not worth it. And that's the biggest problem: no one's providing the data. "Why, Jerry? No one's providing the data." I don't know — it's weird to me too.
Why Almost Nobody Teaches This
Alex had a few answers. First off, in the crypto space, for whatever reason, a lot of people don't like to show their face. It takes a certain level of conviction and bravery to even get on camera and teach people — and he commended both of us for doing this for years — in a space where there are so many trolls, and when money's involved, a lot of stuff can happen. So these other systems, they just don't want to get on camera and teach. And people are hungry for this education.
There are a couple of people out here doing it and have been for a while, like Lucas Rubix at the Crypto Labs Research YouTube channel. He created the Underdog Investor Group, where Alex has been teaching this stuff for years alongside a bunch of other high level coaches. They've got this stuff down to a science, and a lot of the people with a lot of money find these groups, go in there, and make the most amount of money as liquidity providers. It's actually kind of a small circle. Aaron did a video showing there are only 20,000 or 30,000 unique wallets in the entire world doing this — so probably 15,000 to 20,000 people actually liquidity farming at a high level with sophisticated strategies and tools. That's not a lot of people when you look at the grand scheme of the crypto space and the entire world. We're so early to this space, and the returns are so outsized because of it — especially as the rest of the world wants to get into crypto, and all they know how to do is click buy and click sell. Guess who earns every time they do that? The liquidity providers do. They're literally making these markets for these people for this to be possible.
And now with MaxFi and Snuggle, Alex said, they're democratizing market making for the everyday retail investor. Normal, everyday people — you, me, Aaron, all of their community members — can come in with a hundred bucks, put it in a favorite liquidity pool on assets they already own and have conviction in. With a system like MaxFi or Snuggle, it's so capital efficient, and it preserves your principal so well from those hidden costs and impermanent loss, that it's very forgiving. Even if you don't know what you're doing and you just blindly YOLO 100 bucks into a position, you're probably going to be all right. But then you go watch some of their videos, do a little bit of research, and now you're very sophisticated compared to the rest of the people doing this, using the most advanced tool on the market right now — and your performance is extreme.
The Community: A $200 Position That Made $2,800
Then, Alex said, you go into the MaxFi Discord, where they have people who are brilliant — genius community members taking this technology and applying it in ways he never thought possible. For instance, Cryptolo. This guy's a genius. He took a $200 position, and in the last 30 days he has made over $2,200 on it — it's $2,800 now. He's made $2,800 in the last month on 200 bucks, and it's still going, printing every single day for him. Now he's teaching his audience and the people in the MaxFi community how to do this. And there are a lot of people at his skill level sharing their results, their positions, their exact strategies, their favorite pairs — saying, here's where the money's at right now, guys, go in with these settings.
You can ladder it, too. Alex described a Russian doll strategy: you don't have to go just one range. Take $300 — put $100 tight, $100 moderate, $100 conservative — pick some random rebalance delays, and just let them run for a few weeks and see what happens. Whichever one's doing best and you like the most, scale into that one. There are so many ways to do this in a very forgiving way. It's not like day trading or leverage trading, where you make one wrong move and blow up your account overnight. Especially on the blue chips, it moves kind of slow. You're watching your position and the fees are just stacking up, and if something seems off with the position, you adjust it slightly — there we go — and you find those sweet spots and optimize as you go.
Liquidity farming, Alex argued, is very forgiving compared to trying to day trade, swing trade, leverage trade, or gamble on perpetuals markets, options trading, or Polymarket. That stuff is extremely degenerate in his opinion. Unless you're a really advanced fin trader — some tech or finance bro using a put option to hedge a portfolio strategically — he's not talking about that. Most people are out here buying call options on GameStop, hoping they're the next millionaire, and then they lose it all six weeks later. This way, it's more like: put a few hundred bucks in and watch it make a third of a percent per day, half a percent per day, 1% per day.
They're seeing crazy numbers, too. Some of these meme coins on Robinhood Chain right now, people are doing 5% to 10% per day or more. And every day they earn those fees, it de-risks them from the exposure to that meme coin. In like 12 to 14 days, they've completely gotten their initial back out. Now they're on house money — they take the initial out, put it into blue chips, and let the meme coin free-money-printer run on house money, giving them passive income for however long that meme coin lives. There are so many ways you can play this.
Alex Built ICP Infrastructure on Base Chain for Us
Personally, Alex is mostly in blue chips: Bitcoin/ETH, Solana/ETH. And now he's in ICP/ETH because of us — he built out the infrastructure on chain over the last few nights in preparation to meet me, because he knows I have a lot of ICP bulls in my community. There's a wrapped ICP token on Base chain, and the infrastructure was lacking there as far as liquidity. So he built out all the V3 infrastructure on Uniswap that was necessary to unlock capital efficient trading of ICP against USDC stablecoins as well as ETH. Now that's available on MaxFi. If you've got ICP, you can go right on MaxFi, pair it with wrapped ETH or USDC, and start earning yield right now. Alex told me he's doing between 50-150% APR on his ICP positions as we speak. Thanks, guys — he's an ICP bull now.
The Risks You Should Know Going In
Before he showed me his positions, I had to ask: this sounds almost too easy. You go on, show up, pick some positions, put some money in, and make money. What are some of the risks people should be aware of beforehand? What are the favorable versus unfavorable times to be doing this? Is this bad in a bear market when things are going down? Are you missing out on gains in a bull market when things are pumping? What are the things people should know so they don't find out the hard way?
Alex was straight about it: you're still exposed to the underlying assets. If ICP goes down in price, your LP value will go down in price if you're holding ICP in a liquidity pool. It's the same risk exposure as already holding these assets, so you already know that risk. If ICP goes down 10%, your LP position goes down in dollar terms about 10%. If you're paired with something like wrapped ETH and they both come back up 10%, your LP value comes back up 10%. So you kind of track the market. But if you're not a crypto bro like us, and you're not used to those swings, and all of a sudden the crypto market dumps 20% over a week — that can be unsettling for normal people who aren't used to crypto yet. It's the same crypto rollercoaster.
Except now, he added, they have tokenized stocks on Robinhood Chain. So there's an uncorrelated asset class where you can diversify your exposure with stocks, equities, ETFs, gold and silver, and bonds. And they also have Forex pairs.
Building an Uncorrelated LP Portfolio
So you can really pick the assets you want your risk exposure to and put together an LP portfolio with a bunch of uncorrelated assets. If the crypto market is going down one day but the stock market's going up, your stock positions are ripping while your crypto positions are dipping, and everything's okay — either way, you're earning fees all along the way. That's your main risk exposure: you're still holding the underlying assets at the end of the day, so know what you're holding.
The second risk, Alex said, is realized impermanent loss across rebalances. If you go super degenerate and do a half-a-percent wide range with a one hour rebalance delay, and it's just chopping you up, that could be bad. Don't do that. Go wide and let it ride at first. If you're new to this, see how it works with a super wide range and a long rebalance delay — it's a very slow moving beast. You'll have very little impermanent loss realized that way, and your fees are probably going to out-earn whatever small amount of impermanent loss you have, because they use snuggle rebalancing to protect and preserve your principal as much as possible. But impermanent loss is still a thing, so learn about it in their learn section, and start out wide and slow. Then, as you get good and really understand how this stuff works, you can optimize, tighten things up, and find those sweet spots where you're maximizing fees while still minimizing impermanent loss — that sweet spot where you have the highest cover value Aaron was talking about. Those are the two main risks associated with liquidity farming.
The way I played it back: if you pick some meme coin paired with some other meme coin, that might be a riskier environment where both could go down and you could basically lose your money. But if you pick the right meme coin with something else, you could be printing money. And there are all kinds of random pairs too — you could pair some random meme coin with gold, for example, and if nobody else is providing liquidity there, you're in a position to earn some great fees if people start swapping there. So there are a lot of opportunities, but you've got to choose which assets you want to be in, because you're still taking the risk on those assets. If you pick assets you enjoy or stand behind, you're taking the same risk as usual, but you're earning fees — and even if the price goes down, you might make enough in fees to cover it. Then when it goes up, you make the price gain plus the fees. Exactly, Alex said.
Correlated Pairs: MSTR/ETH and the Rebalance Delay
Then came a pro tip: a way to really minimize impermanent loss is to pick correlated pairs — assets that move together — because impermanent loss only happens on their divergences, when one shifts from the other. Bitcoin and ETH are pretty well correlated. Solana and ETH, very correlated. And Aaron identified the MicroStrategy pair with ETH — the MSTR/ETH pair — a money printer, and it's super correlated, so you can go tight. Alex teased that Aaron's making like 2-3% per day on that one; Aaron corrected him — it's about 1% a day, about 200-300% APR. But some days it just jumps.
Aaron shared what happened that very day, and it shows something great about their system. A couple of his positions went out of range, and he got kicked into MSTR. MSTR is basically a Bitcoin proxy — it's correlated with Bitcoin. So all of a sudden a lot of his MSTR/ETH positions got thrown into MSTR, but MSTR was still going up. As Bitcoin was going up, his MSTR was going up, so it's not like he stopped gaining. Then eventually the position actually came back into range without him doing anything — no rebalance, no nothing — because ETH started to come back down, MSTR went back up, and they both met in the middle like little lovebirds. And he continued to print for the rest of the day. I asked how long his rebalance delay was set to allow that to happen: he has about a four hour rebalance delay, and this all happened within about a two hour period.
The rebalance delay built into the system is absolutely a game changer, they told me. A lot of people always want to be printing money — "I always want to be in range." But it's a good thing Alex built this into the system, because you actually save money by not being in range: it helps you stave off the impermanent loss and the problems liquidity farmers have had in the past. Short term price wicks revert to the mean in just a couple of hours, or even a day or two. You can spot that on the chart and say, hey, a four hour, an eight hour, maybe a 24 hour delay would completely filter out that noise and all those unnecessary rebalances — and you lock in zero impermanent loss when the price comes back into your range and you're earning again. You can be very strategic about it.
Gold and Silver on Robinhood Chain
Alex also brought up the gold and silver pair he created the other day — it didn't exist before. They built out the gold and silver markets entirely on Robinhood Chain over the past few weeks, and it all led up to this plan he'd had to have a gold/silver pair. It's the holy grail of correlated pairs, in his opinion. He knows they've said that about Solana and ETH, but gold and silver are so correlated — and as an asset class, so uncorrelated from crypto and stocks. So now you can have Bitcoin and ETH moving together, printing; SPY and QQQ, the ETFs, printing together; and gold and silver paired together, printing. Three uncorrelated asset classes, each correlated within its own sector. You're always printing, you're minimizing impermanent loss, and you have exposure across all of those asset classes. This was never possible in finance before — it's a revolution in finance. He thanked Robinhood Chain for the RWA, real world asset, infrastructure they brought, which MaxFi is now further building out and applying their extremely capital efficient liquidity management system to. The results are spectacular — explosive. Their users are literally printing money hand over fist on Robinhood Chain right now.
Like Cryptolo with the meme coin he picked — a thinking cat called HMM. HMM paired with wrapped ETH is the most silly thing: a picture of a cat, no intrinsic value. He turned 200 bucks into $2,200 — $2,800 now, sorry — and it's still going.
On meme coins, Alex wanted to add a warning: don't YOLO everything you've got into one meme coin. Not financial advice, but hear him out — split it up. Pick the five or ten strongest meme coins on the chain and put like a hundred bucks in each one instead of a thousand all into one. Then if one of them nukes on you, you barely feel it, and all the others keep printing. If they start ROI-ing on themselves and you're on house money on half of them, you don't actually care what happens at that point — now you've just got a giant printing press across all of these meme coins. That's how you further diversify yourself. It all made perfect sense to me.
Their users are really perfecting these strategies at a portfolio level and sharing them — "here are my 90 positions in the system right now, guys, check it out." One guy said in the last 90 days he's made ten grand in profit, even after factoring everything in, and that he's making more passively every day from MaxFi than he makes as a lawyer. Jeez. Alex told me he just keeps thinking: how is it possible that all the time and effort he put into building this thing is now out here completely changing lives? It's a really cool and satisfying thing to experience as a software developer. He's been a software engineer for 20 years, normally working for corporations in windowless cubicles that don't really appreciate the amazing stuff he's built for them — stuff that made them millions of dollars over the years — compared to everyday people in their community sharing their stories, telling them how this is completely changing their lives and giving them freedom they didn't have before.
Alex's Live ICP Positions: 146% APR
Amazing. So I did the math out loud: I have twenty-some thousand dollars in ICP. If I was even getting like a hundred percent APR on that, I'd be getting thousands of dollars a month if I had all that in MaxFi. That's right, Alex said — and he offered to share his ICP positions, so we looked at them together.
He built out the ICP infrastructure over the last few days and finished getting it all set up the night before. Right now you can trade ICP/ETH and ICP/USDC in an extremely capital efficient way. As Alex showed me, he's got 15 active positions across ICP and wrapped ETH and ICP and USDC. He put about $2,600 in, and he's doing about 146% APR. That will fluctuate based on the volume flowing through these pools, based on demand for the trading of ICP, and all the arbitrage bots across the networks and the bridges between the different blockchains. So the yield will fluctuate.
He's got an 8% wide range on ICP and ETH. ICP and ETH are actually kind of correlated — not as correlated as Solana/ETH or Bitcoin/ETH, but still correlated: when crypto pumps, they're going to pump together. So in a position like this, he has upside exposure to both ICP and ETH for when the bull run comes. And one position specifically, on the 1% pool, was absurd right now: it had been 14 hours and he'd already made a dollar on $93. That's 600% APR — almost a 2% per day rate. That'll probably come down, he figured. Or maybe not.
Inside Alex's Robinhood Chain Portfolio: 97 Positions
Like we saw with MSTR and wrapped ETH — that thing's been going 1-3% per day for two months now. It just depends. Even NVIDIA that day: the APR shot up on NVIDIA stock because NVIDIA had earnings. So it depends on what's going on. If ICP has a big day — Dom announces something big — most of the time the price goes up, but so does the volume. This way you just make a bunch of money and you don't need to sell; you just sit there and reap the rewards. And that's on Base chain, on Uniswap, on MaxFi.
Then Alex said, "If you want to see some ridiculous stuff, I'll show you," and refreshed the page — he's got 97 positions on Robinhood Chain, so it takes a second to load with all the RPC calls. He's got about $12,000 in there now and has earned about $5,000 on it in the last month. His portfolio yield was 928% at that moment. His best position is Thinking Cat, that stupid, silly meme — and he'd actually written down the numbers. He started that position with $79.54 and has earned $600 in fees. Holy crap. And he's only lost about $5 to impermanent loss across 17 rebalances. Geez. "This is unfeasible on any other platform — I dare you to try. Actually, don't, because I don't want you to lose money. But try it over here, where the snuggle rebalancing is a lot more forgiving, especially on extremely volatile assets like Thinking Cat."
He scrolled on — Martians, Juggernaut. Juggernaut's one that's been around for two months now and is still printing after two months. He opened a new position nine hours earlier with $92; the price of Juggernaut fluctuated slightly, so the position was worth about $90 — the position value goes up and down with the price of the assets — but he'd earned $8 in nine hours. At this rate it'll step over $116, and it might ROI in a week; then he'll collect the fees, sell them for stablecoins or more ETH or another blue chip, and be on house money with the position.
How He Picks Pairs
I asked how he picked, for example, wrapped ETH and Juggernaut on Robinhood Chain to provide liquidity for — and whether he had to show up with equal parts Juggernaut and wrapped ETH to begin. Correct, he said. He tracks on-chain activity: he looks where the money is going and finds the flow. For a lot of these meme coins, you can track the activity directly on Uniswap, or use DEX Screener — there are a lot of tools where you can see the volume on a token. From there, he goes in and optimizes the pool setup for that specific market: he either adds existing pools that are already optimally set up, or he creates the optimal setup if it doesn't exist yet.
The 1% Juggernaut pool is, honestly, a juggernaut — it's been super strong for months. DTF, one they just added — 38 hours earned him $16 on a position he started with $112. These meme coins fluctuate big time, which is why he has a four hundred percent wide range on that one: he lets the price move around in this giant range while it spits out fees and de-risks him every day. Some of the more established ones, like Juggernaut and Tendies on Robinhood Chain — he has multiple Tendies positions, and one he probably started around seventy bucks has earned $260. He has auto compounding enabled, so half of the fees go back into offsetting the impermanent loss, and that's why he can get away with a 20% wide range on something like Tendies — again, unfeasible anywhere else.
Cash Cat was a crazy test. Blockchain Pill's Cash Cat position is a monster — he is printing money on Cash Cat. Alex usually starts these positions with anywhere between $65 and $75; this one's still around $72 and has earned $251 in total. When the price runs on these assets, he sometimes manually collects the fees, sells them, and takes profits. And Index — Cryptolo has made a fortune on Index so far. Alex started his own Index position with $83.62; it's now worth about seventy, but he's earned $209 on it.
The Matching-Token Compounding System Explained
I asked him to explain the compounding a little more. He built what's called a matching token, no-swap compounding system. Effectively, over time it compounds 50 percent of your earnings and harvests the other 50 percent automatically to your wallet on every rebalance event. I asked where the compound goes — does it go back into the position value? Yes. Here's how: say the price moves out of his range so he's fully converted to wrapped ETH. When the position rebalances in two hours, it takes any wrapped ETH he's collected so far and adds it to the principal, and it takes any of the Index tokens — which are much more valuable at that moment — and sends those to his wallet. So it forces you to take profits when prices are high, and when prices are low on the asset, it compounds them back in and waits for prices to come back up — so when the price recovers, you have more of the token. It's kind of like a seesaw. Doing it this way has unlocked another level of capital efficiency for liquidity position management, as well as offsetting realized impermanent loss — which not only keeps your positions healthy, but a lot of times allows them to compound and grow.
I wanted to make sure I understood: on that last position, if he'd earned about $209 collected, does that mean roughly $104 went to his wallet and $104 went back into the position value? Kind of, he said — that example isn't pure, because when Index is running and he's got like 30 bucks sitting there, he'll collect the fees manually, and 100% in that case goes back to his wallet. If Index goes on a tear and he knows a huge pile of Index is sitting there ready to harvest, he'll just collect all of it and sell it. So not all of it was compounded. But generally I was right: if you don't manually collect the fees, approximately 50% gets compounded and approximately 50% gets sent to your wallet as passive income every time it rebalances. That helps offset the impermanent loss, compounds the position, and keeps the passive income stream going to your wallet.
The wrapped ETH/AI position has been one of their big winners lately. Aaron has a big position in it, and it's already paid off — he put $480 in and has already gotten $1,200 back. Alex has been in it the same 13 days: he put in $108, has already harvested manually — he's collected over $82. So $82 of it wasn't even compounded; maybe $45 or so has gone back into compounding, which has grown the position, and the rest he's just been taking out because AI has been on a tear — harvesting it as fast as he can and selling while prices are high. There are ways you can micromanage like that, if you're the type who likes to, and get additional strategic benefit — but it's not necessary. Alex built the system to be so easy you can set it and forget it, and it takes care of everything for you in the most capital efficient way, constantly paying you passive income for as long as possible. That's his goal: hands off. And there are people out there like him with 97 positions — and that's just on Robinhood Chain.
The Blue Chip "Savings Account" on Snuggle
On Snuggle, Alex has another 11 positions going: $45,000 in, and he's earned about $6,300. This is a much more blue chip, slower moving portfolio — not his Robinhood meme coin portfolio; that's a whole different ball game. This is his long term portfolio, like his savings account: wrapped ETH and Bitcoin. One position has just been going up in value with the market and has earned almost $1,100 in 60 days. He calls these types of positions correlated pair accumulators, because they compound and accumulate half of the fees back into your position and send the other half to your wallet — so you can go pay rent, pay your mortgage, go on a trip around the Mediterranean, or whatever you want to do. Or, if you're like Alex and don't need the money right away, take the stuff in your wallet and use it to open new positions, compounding your entire portfolio that way.
VIRTUAL/wrapped ETH has been a fantastic performer on a 12% range. AERO/cbBTC is a monster position people have been loving all summer. Alex is very conservative with his ranges and delays, and he uses a very sophisticated backtesting system to give him a conservative-to-moderate approach where, even if the market goes absolutely ballistic, he's not going to get wrecked by impermanent loss. Over a six month backtest, all of these positions and settings have done nothing but grow, with a massive cover value where the fees earned far outpace any realized impermanent loss. Essentially, it's a free token accumulator where he has exposure to the stuff he'd be holding anyway.
I asked how he does the backtesting. He's spent hundreds of hours — if not a couple thousand hours now — building out Agent Max, the most sophisticated AI LP farming system ever created. There's nothing else like it out there. It's not just backtesting: it's pool discovery, analytics, backtesting specific to the Snuggle rebalancing smart contract used on Snuggle Fi and MaxFi Tech, and portfolio level strategizing to diversify your risk — making sure your risk-to-reward ratio is well balanced and your allocations are set up wisely according to modern portfolio allocation theory. That's why he's heavier in stuff like Bitcoin and ETH.
Portfolio Strategy, Not APR Chasing
On that heavier blue chip allocation, Alex's earning rate is 43% APR — but the risk to reward ratio on it is through the roof. It's a much safer position than, say, VIRTUAL paired with wrapped ETH: VIRTUAL has a higher beta, it's a little more volatile, and we don't know what it could do — it could go really volatile at any point in time. Same with something like VVV; it's a newer token. It's been one of the best performers all year, and Alex really likes the token, so he wants to have it — the earning rate has been spectacular and the cover value is still through the roof. Looking at Uniswap paired with wrapped ETH, you can see how he's diversified his risk into altcoins and even some meme coins on Base chain — a much more established meme coin scene compared to the Robinhood stuff. But he's not APR chasing at the end of the day. He's still coming at this with Agent Max's guidance to help structure an LP portfolio, based on the data available — the market data, the price data, the pool data — all factored in with different weights at each step of the process. That's why his portfolio looks the way it does.
And about those 97 positions: a lot of them are his test positions. Robinhood Chain is so new — a blockchain that's two months old — that a lot of these assets only have price data going back two, four, eight weeks. So they don't have the sophisticated backtesting systems on Robinhood Chain yet that they have on Base chain thanks to Agent Max. But they will soon. That's why he has 97 positions of about 100 bucks each: he's harvesting data for different ranges, delays, and assets, finding the staples that will go into Agent Max's Robinhood portfolio.
The Agent Max Token
I remembered on Blockchain Pill's video they talked about Agent Max a bit more, and I'd heard there's a token sale coming where people will be able to take advantage of Agent Max for themselves. Yes — Agent Max is coming. They did a pre-sale just within their own community back when they only had a million dollars in TVL — a $150,000 seed sale, a pre-sale. In maybe two months, once things line up, there's another product launching, and then they're going to launch on Hype and Solana, and after all that they're going to launch Agent Max — hopefully in two to three months. It'll make this whole process even easier: the data will be right there and you can do one click in and out. They also have a new system coming out soon where all you need is literally USDC or USDG to open positions — they're about to simplify the whole game. Agent Max will probably launch when they have, I don't know, a $10-20 million market cap. Aaron thinks it's probably going to do incredibly well, and it's already going to be a revenue driving asset — it'll have revenues behind it because it's going to be getting part of the fees generated, built in from what they've already done here. Pretty cool.
That sounded helpful to me, because my one thought looking at all of this was: it looks pretty complicated — picking the different coins, picking your delay, do you want auto compounding, do you want a wide range or a tight range. The bigger pairs like wrapped ETH's and cbBTC, those are pretty straightforward, and it's going to be hard to go wrong on those — and there are still some pretty good gains there. So it seems like for beginners, you might pick some more basic pairs, and then if you want to really try for the highest earnings — but take some more risk and put some more time into it — you could go for those small, tiny positions. "You nailed it," Alex said. Or the more advanced stuff, like pairing a meme coin with gold or whatever.
They haven't actually done a meme coin with gold yet, but they're talking to some people trying to launch stuff. We joked that they should launch a meme coin called Gold Bug and pair it with gold. Someone actually brought them an idea to do a Baron Trump coin — they'd call it Baron, as in oil baron — paired with USO, the oil ETF. You can start doing really cool stuff.
DJT: The Craziest Money Printer on the Stock Book
Speaking of Trump — the DJT stock. Alex doesn't know anything about the company, by the way; this is just based on the data and the numbers. DJT — he thinks it's the Trump Media organization — has been the craziest money printer in the whole stock book they have on Robinhood Chain. He shared his screen one more time. They'd paired that Baron Trump coin with USO, and they also created a pool with Baron and DJT — they could have a whole ecosystem going. But look at this: he's earned $32 on a $67 position — basically what he put into it, and actually he thinks he put in less, because DJT was like eight or nine dollars when he started; Aaron started one at the same time. It was probably a $60 position when it started, it's earned $32 over 13 days — that's almost three or four percent per day. And he's been collecting the fees and just selling them, because — his words — "I don't even know what this stock is. I would never invest in this normally." But people in their community kept saying, guys, I don't know why, but my DJT position just won't stop printing. So he said all right, and opened a whole bunch of positions on it.
Another one, twice as wide, has already earned 36 bucks on maybe $110 when it started — 813% APR. Another is a 55% range he just went super wide on: probably $130-140 when it started, it's like $150 now, and it's earned $35 — and this is in 13 days. "This is crazy. I've never seen anything like this, and I've been in DeFi for a long time. I'm a developer, I've been in the weeds on the blockchain stuff, and I've never seen a risk-reward ratio like this." It's a stock — it's probably not going to do anything too crazy. Not financial advice, and he doesn't know much about the stock, but he's probably going to ROI on it in a month, and at that point he doesn't care if it's a stock or a meme coin — it's a free money printer for him. And there's nowhere else you could do this.
SPY/QQQ, Dividends, and the SGOV Ratchet Pool
Now, if you want to be super conservative: SPY/QQQ. Alex has a whole bunch of positions and money in SPY/QQQ with all sorts of tight ranges, because SPY and QQQ are super correlated — they barely diverge. It's basically the entire stock market paired with the entire stock market, and it moves pretty well together. On a two percent wide range there had been zero rebalances in the last four days, and he's earning 18% on it. And this is a brand new market, so those rates will probably go up as there's more SPY and QQQ trading on the chain. This way he's basically getting exposure to the entire stock market — the position will track the stock market up and down. If SPY goes up on average 10% yearly, like it has over the last 40-50 years, he's going to get that 10% plus whatever yield he's earned, compounded half back into the position and half into his wallet as SPY and QQQ.
Plus dividends: on Robinhood, stock dividends actually roll into the value of the underlying token. SPY earns a one percent dividend, and the way Robinhood does it is they self-accrue the dividend onto the value of the token you're holding. So the SPY and the QQQ earn their dividends inside the liquidity pool, because the tokens are composable. It's brilliant how Robinhood did the dividends.
Then SGOV. "You like bonds?" I love bonds, Alex said — he's got tons of SGOV in the real world. And this DeFi stuff is not the real world, you guys — none of this makes sense, this is fantasy land — but the money's hitting our bank accounts, so it's awesome. SGOV is a short term Treasury bond ETF doing something like four and a half percent dividends right now. That four and a half percent dividend, every month when they do the payouts, goes into the SGOV token itself in the underlying pool. This is what he calls a ratchet pool: it just goes up in value over time. SGOV and USDG don't really move — SGOV is basically pegged to a hundred bucks — but you get the self-accruing dividend on it, so the USDG/SGOV pool will just slowly go up in value over time while earning and compounding at an additional 12.4% rate. "I just don't know a risk-reward ratio like this anywhere. It's unbelievable what we have available to us in 2026."
I thanked him for showing all of this, because it's amazing. I don't usually see something in DeFi and think, man, I should give that a try — but with this, I'm thinking it might be worth learning, signing up, and giving it a test. It looks like they're just printing money. It's crazy the amount their community is printing collectively — like Aaron said, $95,000 in the last 24 hours. Which set up what I wanted to ask next: how long do they think this is going to last?
How Long Will These Earnings Last?
Usually there's a sweet spot in the air where you can get in and print money before everybody figures something out. So I asked: how much longer do they think these kinds of earnings are going to last before they start to go down on average, or before so many people put so much TVL in that you get diluted?
Aaron pointed out that Base chain and Ethereum have been around for a long time and you can still get great rates. Most of the money they have is on Base with ETH and BTC, and people are earning between 35% and 60-70% — he thinks his new SOL/ETH position he just made is at like 80%. And like Alex said, there are really only about 10,000 or 20,000 people liquidity farming across the globe, while the market has billions of dollars worth of liquidity — so we're not even close, number one. Number two: all of these stocks coming on chain, on Robinhood Chain, are bringing billions of dollars. Robinhood Chain just got to like $600 or $700 million; it's going to become a 5, 10, 20 billion dollar chain with all these stocks — maybe even higher. It's probably going to become the second largest chain within the next year or two. All this money is still flooding in. We're nowhere close.
He'd say we're probably going to see great numbers for at least the next year, maybe a year and a half. And we're in the middle of the bull run — he thinks we're going to go for the next three years, and maybe when we go into crypto winter it slows down sometime in 2029. But with the calculations they made, all you need is a good two to three years of just compounding to change your life — you'll turn ten thousand into a hundred thousand, a hundred and fifty thousand dollars, depending on the pair you're in. So we have plenty of time. We're very early.
Alex agreed we've got years before people really start flooding into this. It feels like it's flooding into Robinhood Chain right now because it's the fastest growing blockchain ever — but that's crypto people, existing capital that's already here rotating. What they're going to see as market makers is that every year, more and more people come into crypto and start trading these assets on chain, whether they realize it or not — a lot of this stuff will just be part of their applications and daily lives. More people are going to come on chain and start buying and selling this stuff, but they might not become part of that 10,000 or 20,000 people who are market makers. So the amount of money coming in — contributing to the volume and the swap fees the LPs earn — is going to far outpace the number of people who come in to be liquidity providers. He thinks this is actually going to keep ramping up for a couple of years, then level out for a couple of years, and then slowly start getting a little diluted as everybody starts using this kind of thing to make extra money and tools like this become easier and more accessible. But right now, they've got the best tool and this amazing set of emerging markets between crypto and now tokenized stocks. We are so early. Basically any asset you can think of, you can LP on it nowadays, and you can do it in a completely hands-off, automated way that's super easy, in the most capital efficient way possible. And they're going to try to make it even easier, and keep educating people about how they're making a ton of money doing it and how their users are making a ton of money doing it.
Why Alex Does This: Surviving a Divorce on LP Income
At the end of the day, Alex said, they're a people business — if they can help people make more money and make their lives easier, they've done a good job. And he shared why it's personal. Liquidity providing helped him through a tough time in his life. He went through a divorce a few years ago and lost a bunch of his assets. For a while, during the whole legal proceedings when everything was up in the air, he was living off his income as a liquidity provider — doing it the old fashioned way, manually, 10 to 20 hours a week. He was very good at it, and he was able to survive. Now he's back to thriving: he's rebuilt his portfolio, and now he has options. Maybe he doesn't need to work another software engineering job, because he's making just as much as a liquidity provider at this point — so he could build the business he'd dreamt of, which combines the two things he knows: liquidity provisioning and software engineering together, to help people make more money. That's how Snuggle and MaxFi were born. It changes lives out here, and at the end of the day, that just feels good.
That got me wondering. I have my ICP channel, and it's easy to do content for it — but maybe I ought to get into liquidity providing and do a video every day on it, because it's such a big opportunity, and it's a significantly different audience and approach than ICP. I'd sure love to make a thousand to a few thousand a month liquidity providing myself. That would be a big opportunity, and it would very much help me as a content creator.
A Word of Caution on Leverage
I even joked that with as much as some of these are printing, you could afford to borrow money to do it. Alex jumped in right away — not financial advice, and he always wants to dissuade people from using leverage. Raw LP stuff is pretty forgiving, but as soon as leverage is involved it can be very stressful. It can keep you up at night, because you have to pay the loan back and you have this leverage hanging over you.
But he understood where I was coming from, too. I already have a couple hundred thousand in loans — I could pull $10-20,000 more and throw it into liquidity. As Aaron put it: "I see what he's saying. He's like, I'm already stressed out and it's not making me any money — let me go get 10 grand where I can turn that into, I don't know, $150-200 a day conservative, and pay my other loans and keep my life going." Everyone's situation is a little different, and it depends on the kind of loan you're getting.
In the crypto space, where Alex has been teaching big portfolio strategies using borrowing and lending for years, the main mistake his students made was borrowing against volatile assets like ETH or Solana or SUI — where a Trump tweet crashes the crypto market 30% overnight, and even if they thought their LTV was healthy, boom, some of their tokens got zapped and they got liquidated. Bitcoin is a little less volatile, so he would always tell people: if you're going to do it in the crypto space, borrow against your Bitcoin with a super low LTV of like 20-25%. That's manageable and a little easier to sleep at night, versus going 50% LTV against Ether or Solana, which can swing 30-40% in a bad month. Not financial advice — just from experience, from seeing people get liquidated and being liquidated himself doing it in the past. And if you're already borrowing hundreds of thousands of dollars from your bank or something, be very conservative with your LPs: blue chips, Forex pairs, things like USDG/SGOV or EURC/USDC where the market's not going to dump on you, or even Bitcoin/ETH. If you've got the wiggle room and the runway to wait out a dip and wait for the market to come back up, you'll probably be okay. Just some general wisdom with leverage.
I thanked him for that, because I really am wondering what to do and how this could fit in. It seems like this space could use more education, too — there are a lot of things to learn even with how much their system has simplified it. There could be a video every day on here, like "hottest liquidity pools today." This whole conversation was awesome — getting to know these two and seeing a side of crypto I haven't paid much attention to for quite a while.
The Referral Offer and the $50 Minimum
Then Alex spoke straight to my audience: "I know you guys love Jerry. So if you want to help Jerry out and help build his bag, I will convince him to put a referral link to MaxFi in his video. If you click that referral link and make your deposit to try this out, three percent of all the fees that would have gone to our business will go to him — and that will quickly give him a really fun portfolio to share with you guys and to help learn together. And if you have friends and family, share your own referral link with them as well, and that way you'll be earning extra that you can then play around with. So support Jerry, use his referral link — I highly encourage it." Thank you for that.
And it looks like you can start playing around with this for as little as a hundred dollars — actually, there's a $50 minimum deposit. You can deposit any amount, but for the auto rebalancing to kick on, your position needs to be over $50. Alex generally says if you want to go with a smaller position, $70 to $100 gives you wiggle room for the price to move up and down and keep the auto rebalancing going. And the $50 minimum is there to make sure the fees make sense — which he was just getting into as we wrapped up.
Why the $50 Minimum Exists
Alex finished the thought about the minimum: the $50 floor is there to make sure the fees they earn from their performance fee on the business are enough to cover the gas costs for all of these rebalances. Their gas costs at this point are astronomical — just absurd — because they now have thousands of users and tens of thousands of positions, and their system is automatically rebalancing thousands of positions a day. It's really pretty wild. That's why they have the $50 minimum to enable the auto rebalancing to function. Even so, that seems very accessible to try it out and test it out, and I appreciate the referral link.
We had an hour and seven minutes recorded at that point, so I asked if there was anything they wanted to wrap up with. "We're good, Jerry. I appreciate your time," Alex said. As a fellow ICP guy — he covers it from time to time and follows me quite a bit — it was good to actually talk one on one. It was, and I appreciate them sponsoring this video.
Getting Started with MaxFi
Before we signed off, I asked about the best place to go to get started: is maxfi.tech where they'd encourage most people to go? Yes — you can go to maxfi.tech and look at the videos. It goes to the YouTube channel, and there's a Daily Income Machine video I saw right on the home page you can click on. From there you can go to Passive Income Labs, which is the channel for MaxFi. If you go to the video section all the way at the top, it has all of their videos listed — with full article breakdowns. They've got a lot of content out there: tutorials, everything. They've been trying to teach people for the last seven months, and as the situation changes, they keep it updated.
This was an awesome video, and I hope everybody's enjoyed this look at a side of crypto I'd stopped paying attention to. Go to maxfi.tech if you want to get started, and I'll keep sharing what happens as I test liquidity providing myself in my Crypto Reviews playlist.
And if you want to talk to me, message me in the Skool community, or go to jerrybanfield.com.
Thanks for watching — and thank you very much, Aaron and Alex. "Thank you, Jerry."