How I Turned $50,000 of ETH Into $625 / Month of Cashflow (DeFi Passive Income)

追加: 2026-06-01

[00:00:00]Today, I'm going to show you exactly how you can turn $50,000 of Ethereum into over $600 per month in passive income.

[00:00:07]Now, the strategy that we are going to be running today is called the blue chip flywheel, where we essentially lend out Ethereum, we borrow against it, and then we use that borrow in concentrated liquidity pools to generate high yields.

[00:00:20]And what that allows us to do is have full upside and of course downside exposure to Ethereum while simultaneously generating a high amount of yield compared to what we would get if we were normally staking or lending or something along those lines. And you may be wondering, "Well, why not just put all of the capital directly into the concentrated liquidity pool itself?" And that's because in concentrated liquidity pools, as the market moves up, your Ethereum is sold into USDC. As the market moves down, your USDC buys Ethereum. So, it's not ideal if we want to keep a spot Ethereum position. But rather, when we lend out the Ethereum and borrow against it and use the borrow, we have borrowed funds that we're working with, meaning that ultimately we are able to capture that high yield while simultaneously having exposure to the Ethereum price movements. But before we go any further, in this video, I'm going to show you exactly what the setup looks like and how much it generates per month. But of course, if you want to actually implement this and know what buttons to click, what platforms to navigate to, and exactly how to manage it, I created a $27 course that walks you through exactly that. It shows you what LPs are, but most importantly, it shows you exactly how you can deploy into your first Ethereum to USDC position. It's 27 bucks for a limited time, and then we are raising the price to $97 next week.

[00:01:34]The link is at the top of the description, so get access to it while you can. Anyways, we're going to start over on Aave, and I'm using Metrics Finance for simulations, meaning that over here I can essentially backtest the entire strategy as opposed to having to fly into it blind and not understand what I'm doing. So, when it comes to my supplied assets, we will supply some Ethereum. Now, you will get paid about 1.5% to supply Ethereum over on Aave.

[00:01:56]However, if you go and you stake your Ethereum over on a platform like Lido, which has multiple billions of dollars, in this case $18 billion of Ethereum staked, you will get 2.4%.

[00:02:07]And the thing is, you could take the receipt token they give you, which is staked Ethereum, or rather wrapped staked Ethereum, and you can actually lend that out over on Aave. So, that's exactly what we're going to be doing instead, because we capture about 0.9% additional yield compared to the standard 1.5%. So, if we go over here and we just use wrapped staked Ethereum, and let's just say we have $50,000 of it. That's equal to about 20 wrapped staked Ethereum. And then if we go ahead and execute on a borrow, we are typically going to want to borrow in a stable coin called Go. It's like USDT, it's like USDC, except the rates are more favorable. You could see if we want to borrow USDC right now, it's about 4%.

[00:02:42]If we want to borrow USDT right now, it's about 3.5%, but historically, this rate is higher. However, when we look at Go, this rate is significantly more stable, simply because it is Aave's native stable coin, and they want to incentivize people to use that over some of the others. But assuming we have $50,000, I would be comfortable borrowing about $17,500, assuming I was not going to execute any more borrows in the future. Now, keep in mind, there are risks associated with this. When we pay attention to this line right over here, initially, our position status is in the green. However, when eventually our borrow is worth roughly 78.5% of our overall collateral, then ultimately, that's where we have to worry. When it's equal to 81%, that's where it's going to sell our collateral to repay our borrow. So, you need to monitor this lending position and be able to deploy dry powder if you need to, or at least exit the liquidity position, so you can repay some of the borrow, or even bring in more collateral over here on the supply side. We'll dive into that. Again, some of this may be complex, and that's exactly why I think it's important to start with one pilot position first, like completing that mini course, and then ultimately after that, scale to using lending and borrowing, and then using multiple liquidity positions, so that way you don't end up losing your shirt in the market. But now that we've borrowed say $17,500, what do we do with that? Well, we're going to convert it mainly into USDC and then some of that is going to be converted into Ethereum. So now I'm going to go ahead and simulate an Ethereum to USDC liquidity pool on Uniswap V3. This has the most liquidity.

[00:04:09]It's on the Ethereum network. It's the securest network. So this is the best place to execute on this strategy. Now I chose the 0.3% fee tier which has about $25 million of liquidity. Now ultimately when it comes down to actually setting our price ranges, we want to really think into these positions. If Ethereum to USDC liquidity pools sell our Ethereum on the way up and buy it on the way down, then ultimately if we are bearish, we want to accumulate as much Ethereum as possible. I'm personally bearish over the next 3 to 6 months.

[00:04:36]Meaning I'm going to bring this max price down to something like plus 8% or so, maybe even plus 7% and then this min price I'm going to bring to a level that I think I would be comfortable making an adjustment at, whether it's bringing in dry powder, borrowing more capital if we have the ability to do so, or of course just considering the strategy executed at that time frame. Now I'm going to bring this over to minus 12% roughly. So that's plus 7 minus 12. That gets me about 65% USDC and about 35% Ethereum, which I'm comfortable with, but in reality I want more USDC. And that's because the more USDC we start with, the more USDC we have to buy Ethereum on the way down. And I'll show you the outcome of this in just a second. So just stick with me. And if you are new here, make sure you drop a like and subscribe notifications turned on so you don't miss out on content like this. However, if we bring that max price down to something like plus 5 and then that min price maybe up to minus 11%. That now gets us to 70. So we're getting closer.

[00:05:33]So I'll bring that min price to minus 10% and that max price to plus 4%. Now this is a relatively tight range, but it also hits our key levels from February that we typically bounce from. So let me show you what happens if we park that $17,500 in here and then we ultimately go down to the price point of $1,800 or so.

[00:05:54]Well, when Ethereum is at $1,800, it's down about 10.7% and we now have nine Ethereum and zero USDC. So, we started with 12,700 USDC and 2.38 Ethereum, but we now have zero USDC and nine Ethereum. That's once again because the USDC was used to buy Ethereum on the way down. But, what happens if we just hold this Ethereum back to our entry price of 2021 basically? Well, let's see. Multiply the nine Ethereum by 2021 and we now have $18,200, meaning that we just generated $700 by borrowing, dollar cost averaging on the way down, holding at the min price instead of rebalancing, and then taking the money that we held and holding it to our initial entry price. And we can hold it past that and we can even bring that back up as collateral over here when we need to because we're no longer in the liquidity position. But, the thing is we are going to generate yield along the way. If we have, let's just say 30 days of yield, that right there is $880.

[00:06:55]That's a lot of yield per month, don't get me wrong, but we can make more money in a couple different ways. If we adjust this min price back to where it was, so I mean minus 12% and just kind of go down a little bit more, we're going to generate less yield, in this case now $720, right? Let's just say we're to go to minus 15 again. Now it's about $640, but the thing that we have to factor in is now when we go to 1,700, we now have 9.27 Ethereum. And if we multiply that number by 2021, instead of 18,236, we have 18,737.

[00:07:30]So, we have to balance the yield with how much we actually want to generate when we go back to break even prices.

[00:07:35]And that's exactly how you can craft your strategy. Again, this is a little complex, but do keep in mind if you guys want to get your first position off to the races, get deployed in a $100 liquidity pool with Ethereum and USDC, and start generating yield within 24 hours, that way you can make some changes in your portfolio strategically, then the link is going to be at the top of the description to sign up for the mini course with the limited time offer of just $27.

[00:08:03]But, this right here is the blue chip flywheel from a high-level overview.

[00:08:06]Guys, if you enjoyed today's video, make sure to drop a like, subscribe notifications turned on, and let me know what content you guys want to see on the channel in June. Now, I'll see you guys in the next video. Peace out.