The 5-minute-a-day Underdog Investor audio experience is a show that’s dedicated to helping you take your power back and create your own version of Freedom. To our clients and us, financial freedom isn’t something that would be ‘nice’ to have; it’s non-negotiable. We’ll be focusing on conquering the world of Investing, diving into a wide range of income-producing opportunities available through DeFi, exploring all things blockchain, and mastering this thing called money.
Come hang out for 5 minutes a day, and let's keep you plugged into the game!
UNDERDOG INVESTOR GROUP: https://bit.ly/CryptoLabsPassiveIncome
FAST TRACK COACHING PROGRAM: https://bit.ly/CLabsFastTrack
concentrated liquidity,uniswap,yield farming,uniswap concentrated liquidity,defi,cryptolabs,cryptolabs passive income,cryptolabs research,defi passive income,true defi,defi passive income projects,how to find new defi projects,crypto passive income,yield farming crypto,yield farming defi,yield farming 2024,defi business,yield farming explained,how to yield farm,yield farm,crypto cash flow,defi as a business,defi as business,crypto cashflow,lucas rubix
What is going on? Welcome back to the underdog investor audio experience. My name is Colin. And today I saw a post in the UIG that was talking about the projected return that they were expecting. And they were a little disappointed that they were only getting about 160% APR. And not to shame this member at all, but I do think it's a great topic for this podcast episode. And that is that the 160% APR is about 13%, almost 13 and a half percent per month in DeFi cash flow. And so when we put it in that perspective, 13% per month is a great target to hit. I mean, that is a great return, especially when we compare it to a lot of traditional financial vehicles and financial markets. Like for me, I was looking at the S&P 500 over, you know, span of the last 20, 30 years, doing about 11 to 12% a year. I've seen dividend funds that produce, you know, they're known for passive income or for cash flow, doing three, four, five, maybe even six. If it's a more higher risk asset asset class there, 6% APR, meaning 6% on the year. And so when we're looking at DeFi positions with, you know, solid assets with a decently wide range, doing 160%. That is something that I'm extremely grateful for and appreciative of. But I think actually to bring this up on one of my accelerator group coaching calls, I asked, Hey, what's the first thing our eyes go to when we're when we're researching and analyzing a pool position, a DeFi position? And they said the APR almost immediately, right? The APR is exactly where our eyes go. And it's so today's episode is just a reminder that that is one piece of the puzzle that projected APR that are going to be getting. And understand that if you're in a pool that's doing 80, 100, 120, 150, 160%, that you are, you are doing very, very well, especially in again, in comparison to other financial vehicles and other financial markets. And so, you know, I want to take this a step further, be like, okay, well, the projected high APRs that I've seen in the past that I've gotten into, it's usually a very short term, like a very, you know, a short, short winded experience that I've had. But it also can, can lead you a stray because it's usually one of two things. Usually it's either a speculative asset with a lot of volume at the moment, you know, where you're seeing those 300, 400% APRs. And then the second thing that it could be is also just the range that you've set, right? If you're in a concentrated liquidity pool, you may have a tighter range that is concentrating your liquidity. So you're earning more rewards. And so you may be projected that 300, 400% APR. But with that tighter range comes the possibility of you going out of range, which just means that you stop earning fees and you get fully converted to one of the assets. But to get back into range, either take some patience or it takes some rebalancing. And whenever you rebalance, you're locking in impermanent loss because you're swapping one asset for the other. And so I guess to zoom out and zoom back out a little bit is that when we see a me grow accustomed to seeing 300, 400% APRs, that can almost feel like, okay, that should be the standard. But what we don't take into consideration is what is the underlying asset and what's the range that I'm using inside of this pool. And so just my, for my experience in the past, it's usually one of those two things, either a speculative asset with high volume that's usually short lived, or tighter ranges to try to get to that APR, which, you know, doesn't really follow our technical analysis skills. And also, again, kind of forces us out of range, potentially more quickly than we'd like to be. So hopefully it's probably some value today, I would say just to kind of wrap this up, that if you're fall, if you feel like you're falling into the trap of being disappointed when you see 100% APR or 150% APR, just remind yourself of what we're doing here. We are taking assets, we're investing in assets in the crypto space that we like and would want to hold long term, and we want to generate a cash flow or a return on those assets by participating in a DeFi activity. So again, for me, 8 to 10, 8 to 12% per month is an incredible target to hit. And so that's really where I spend a lot of my time. It's blue chip assets, really solid assets I'd want to hold, doing about 8 to 10, 8 to 12% per month. And if I can hit that consistently, I'll be well on my way to hit all of my goals. So hopefully it's brought you some value today, hop back in the UIG. And with that being said, we will see you in the next one. [BLANK_AUDIO]
