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5 DeFi strategies for professional traders to make money in bear markets.

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Trader Wajahat Mughal introduced five DeFi strategies for making money in a bear market.

Original author: Wajahat Mughal (@0xMughal)

Original translation: Luccy, BlockBeats

As we all know, in a bear market, as long as you don't lose money, you are making money. However, there are always moments when you can't resist the urge to open the trading platform and see how the market is doing today. Trading in a bear market is also a way of learning, after all, a bull market will always come, and if you only master the trading strategy then, it may be too late. Trader Wajahat Mughal has introduced five DeFi strategies for making money in a bear market. The following is compiled and translated by BlockBeats:

1. Use ETH to sell stablecoin insurance on Y2K Finance

Y2K is a binary option protocol that allows users to choose whether or not to unanchor assets. This is the method I have been using regularly, and I am able to earn stable income every week (please note the risks!).

2、Provide AMM liquidity for options traders on Lyra

Lyra is one of my favorite on-chain options trading platforms. When providing liquidity, it is gambling against traders like those on GMX. In addition, the Delta risk of options can be hedged on GMX.

3、Uniswap V3 Concentrates Stablecoin Liquidity

Doing so does not result in any impermanent loss, but the returns on USDC-USDT on the ETH mainnet may not be very good. However, I have seen many assets on L2 chains, such as DAI, FRAX, and LUSD, earn double-digit returns.

4、Earn ETH staking rewards through Frax Finance's sfrxETH

Frax has created an excellent token premium design through their dual-token system, allowing sfrxETH to achieve the highest actual yield in ETH staking.

5、在 Gearbox Protocol 上进行借贷

translates to

5. Borrowing and Lending on Gearbox Protocol

in English.

This is one of my favorite lending market designs. The Gearbox protocol is very innovative and provides high returns in lending. Some assets on Gearbox have had double-digit returns for several months.