Using DEBT to make $6000 a Month of DeFi Income

追加: 2026-05-09

[00:00:00]Leverage can be your best friend, or it can be your biggest enemy. Most investors, when they take on leverage, they get wrecked. They don't understand LTV, they don't understand health factor, they don't understand how to manage that leverage, and they get greedy. But, leverage managed well can be the difference between two or three x'ing your portfolio in a bull run, which is coming, by the way, or five, six, seven, eight x'ing your portfolio.

[00:00:21]In today's video, I want to dive all into LTV, aka loan-to-value ratio, and show you how to intelligently and strategically take on leverage and use it to your advantage. So, first thing I'll show you here is this portfolio here. I have almost 200k worth of collateral, by the way. Short time ago, this was around $180,000. So, my collateral dollar value is increasing because BTC and ETH value is increasing, which is super fun. And, as you can see, I have $80,000 borrowed against that collateral, giving me a health factor of two, and a current loan-to-value ratio of 40% with my liquidation threshold being 81.68%.

[00:00:59]Now, just to zoom out for about 20 seconds, I look at the 200 week. The closer to the 200 week we are, the more I buy up blue chips, and the more enticed I am to actually take on some leverage, borrow against those blue chips, and use that to earn yields. We were doing it heavily through the last bear market, and compared to just holding, your returns, especially as the market starts heating up, you can get two to three x better results by positioning yourself now than those who do not take on leverage, or they wait until the market starts getting heady until they actually start investing. So, right now is an awesome opportunity, and it's why I'm doing it. Now, if you are in the UIG, the Underdog Investor Group, please check out the new DeFi Operator Group, the DeFi Quests. That is kind of the legacy group. It's still going to be available for you, so don't worry about that, but go into the DeFi Operator.

[00:01:45]And, we revamped it because, A, we're not in bull markets, we're in bear markets right now, which is super exciting. The strategies change. And, also, so much has changed in DeFi since last year that we had to upgrade it. So, definitely check it out. And of course, check out the AI lab. We've got members and students building out research assistants, portfolio managers, agents that are literally helping them get better results. And it's funny that when you set up your agent, you'll notice that you know, a lot of the the the advice after your agent goes through a lot of technical analysis and looks at the markets is like, "Yeah, right now is a great opportunity." Yet, most of the market is on the sidelines, which blows my freaking mind. It's why most people in crypto are broke. But anyway, that's a topic for different discussion. But you'll also notice that we have specific investor tools. So, what used to take 4-5 hours to actually plan out on paper and calculators, we've just built tools to help our students do it in like 10 minutes. So, if you want to build your treasury, if you want to plan your dollar cost averaging, if you want to create a ladder out positions, it's become really easy. You're putting in your asset, you're putting in your prices, and the tools will literally help you set your ladder out positions.

[00:02:47]And you'll actually know how much profit you lock in if you sell at those predetermined price points. What what we're looking here is this LTV and liquidation simulator. Oh, by the way, side note, I'm creating over $6,000 a month on this borrowed capital. And guess what that $6,000 a month does? It buys me more Bitcoin, it buys me more ETH, it buys me more blue chips, because I want to position myself for the next run. But let's have a look at this liquidation simulator and loan-to-value ratio tool. Let's go Bitcoin. Let's say I have $100,000 of collateral, and let's say that Max protocol LTV is 80%, and let's say I borrow $40,000 um against that collateral, which is a 40% loan-to-value ratio, right? I have $100,000 worth of collateral, and I've borrowed $40,000 against it. This is the live price of Bitcoin right now, which is $74,000. Now, we don't like to see anything over 50%. To me, that's already high risk. Again, most investors have no problem doing that, but those are the ones that get wrecked. We don't get greedy, but if the price of Bitcoin starts dropping, you can see if it drops down in this instance to around $59,000, I'd be at my 50%, which to me is like, "Hey, add more collateral or pay down some of that debt." Sure, the price of Bitcoin could still fall to 50, 45, $40,000. We'd still be okay in this example. $37,000, I am now getting liquidated. But, you can see Bitcoin have to go from $74,000 down to 37,000 before I got liquidated.

[00:04:13]Now, with the markets close to the 200-week, I don't really expect that. I expect the markets to slowly go up next year or two. What's awesome is that the higher the price of Bitcoin goes in this example, the healthier my LTV ratio gets. And we saw this last run. We had a bunch of collateral up on Aave.

[00:04:30]Everything was pumping. We were borrowing against that collateral, but our LTV ratio just kept getting healthier because the price of those assets was going up. Again, this was worth around $180,000. Now, it's worth 196. My health factor only went up. I did borrow more USDC. I had $50,000 borrowed. Now, I have $80,000. But, my point here, let's say you have Ethereum and, you know, you you have $10,000 you put up and you borrow $6,000 because someone told you to. And let's say the max protocol LTV is 80%. It's like, "Sure." Now, look, we're above our 50% rule, which again, the platform will happily lend you beyond 50% LTV. I mean, ultimately, the platform profits when you get liquidated. But, we don't want to get liquidated. I know too many people every cycle they get greedy, they get liquidated. And look how quickly, I mean, if the price of in this example, if the price of ETH, where are we here?

[00:05:16]If the price of ETH dropped from 2,300 to 1,700, you're done. You better be throwing more collateral in there or paying down some of that debt. But, if right off the bat, you said, "Hey, I'll just borrow $4,000, a 40% LTV ratio," you have a much bigger buffer. ETH would have to drop to $1,100 to get liquidated. And you'd have a lot of time before then to do something about it.

[00:05:37]Where I know many people, the market is pumping, so they start taking on aggressive LTVs because, "Hey, the market will only go up." And then an asset just has a bad day, even like a bad hour. And whoop, the price just slides by 13%, which in crypto, that's nothing, and you're liquidated. And just for example here, ETH, this was kind of my buy zone and my enter LP zone. We're a little bit above it right now, but we're also well below the 200 week for ETH, which excites me. That's why I buy it. That's why I don't mind borrowing against it. And I want to position myself now for what is coming. I don't want to chase the markets. Most people chase the markets. They're reacting to the market instead of proactively position themselves ahead of time.

[00:06:14]Anyways, if you're in the UIG or you haven't logged in for a while or you want to come back in, definitely check out the DeFi operator. Position yourself now for where the market is going, so we don't chase the markets. Check out the UIG tools. We're always adding to these tools. These are tools to just make you a better, faster, more efficient investor. And if you are taking leverage, which there's there's nothing wrong with taking leverage, just make sure you're doing it in a way that's not gambling. Keep below that 40% LTV. If you do see your LTV creeping above 40%, start doing something about it. I know it's still safe. I know there's nothing to worry about, but we want to stay ahead of it. Pay down some debt, add more collateral, etc. And if you do that and you do the boring work during these boring markets, when things get exciting, you're going to get rich as F.

[00:06:57]It's just it's simple math. We just can't let our emotions get the better of us. When the markets are boring, no one wants to be in it. When the markets get heated, they start taking on way too much leverage, buying way too many assets at way too high prices with way too much money. Then they get wrecked and they say crypto's a scam. Crypto was literally one of the best wealth building opportunities that I have found. The returns blow Wall Street out of the water if you do it strategically.

[00:07:19]If you don't invest in in the education of in actually understanding what you're doing, then you are at best gambling.

[00:07:25]Now crypto becomes a casino, and of course, at some point we have to pay the price of that. And so in that instance, I'd say go invest in the S&P or go get 6% a year returns. Or literally go sit on cash at that point. But if you're willing to put a little bit of freaking effort into actually becoming an investor, then then then I'm excited for you because it just takes one cycle. You play one cycle right, it can change your life. It has for me and it's done for hundreds of our UAG members. With that said, I'm going to get out of here.

[00:07:51]Happy investing. If you like this video, like it, subscribe to this channel, let me know below what you learned. And with that said, I'm out of here. Happy investing. Peace.