As money flows from BTC and ETH into large and small alts, the first vertical that will see a real boost in Q4 2024-Q1 2025 is institutional defi. Risk acceptance will naturally achieve bigger gains, but sometimes grabbing the free money that's just sitting on the table is sweeter.
One of the reasons institutional defi is taking off right now: You can piggyback on the big players to get a lot of free money. One of my favorite plays is the delta neutral yield farm/staking play.
Defi infrastructure is light years beyond last cycle. There are multiple ways to create delta neutral positions and earn from farming or staking yield. One such play you can build without even trading out of BTC is on Pendle, using LBTC.
LBTC stands for "liquid staked Bitcoin" from Lombard Finance. It accurately tracks BTC price while earning a yield and being composable across defi.
Pendle is a nice easy aggregator you can use to find LBTC yield bearing pools. You long X LBTC here, then simply short the same X LBTC on a perp of your choice. Regardless of the price of BTC, you are earning consistent yield. And with the bull market being, well, bullish, you are actually being paid to short BTC via the funding rate.
With a small nest egg, you can generate enough capital from this yield to invest in risk forward stuff like memes on a daily basis for free, basically. This is a strategy I love to employ as it allows me to get involved in the edges of crypto without risking my livelihood. If you pick the right memes and shitcoins, you don't need a ton of money to make a ton of money. You can't put tens of thousands into a $100,000 liquidity pool anyway — yield from a delta neutral LBTC play is just the right amount.
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