How Can Advanced Users Maximize Yield While Managing Risk?
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Strategies include:
Lending Across Protocols: Diversify across platforms to avoid single-point failures.
Stablecoin Lending: Reduces exposure to volatility but may lower interest rates.
Layered Collateral Strategies: Use a mix of volatile and stable assets to balance yield vs. liquidation risk.
Yield Optimization Tools: Advanced users employ aggregators or automated rebalancing to maximize APR while monitoring exposure.
Exit Planning: Always have contingency plans for sudden market downturns or protocol failures.
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Great rundown — DeFi lending isn’t just about chasing APR, it’s about managing risk like a portfolio manager. Diversify, automate, and always plan the exit before entering