The Exact DeFi Cashflow Setup I Run in My Portfolio

Added: 2026-05-29

[00:00:00]Hey guys, it's Jake and today I'm going to show you exactly what I'm doing in the DeFi markets right now to earn passive income, but more importantly, skyrocket my portfolio growth in the next bull run. Now, if you guys follow the channel, then you're probably familiar with my investment thesis. And that's that I'm a long-term believer in the crypto ecosystem. I can see the institutions starting to adopt this technology, and crypto goes far beyond, you know, Bitcoin, Ethereum, and many of the altcoins within it. It's a piece of technology. Blockchain is a piece of technology and DeFi is a financial ecosystem that is going to be used in the next generation, right? And of course, Bitcoin is going to grow with that. Ethereum is going to grow with that. Some altcoins will grow with that, and newer altcoins will pop up and also grow. But a lot of the altcoins out there are not good altcoins. They have great protocols, great businesses, but they have no revenue-sharing mechanism with their actual token holders. In other words, they have no way to essentially share value or share growth from their product or project to token holders, which creates a huge disconnect ultimately, and you become a fundraising technique at that point when you invest into the token. So, rather, my portfolio is actually heavily allocated across uh Ethereum, as well as Bitcoin, and then Hype is my third largest holding. And then I have some smaller altcoins as well, but they're not really huge bets and they're minor portions of my portfolio. So, diving in, I have about $128,000 right now. I do still have about $35,000 on the side that I have not done anything with yet. It's in stable coins and it's going to be brought into um stable positions over the next couple of months. But in my wallet, I have about 5,800 bucks. 2,200 is in Tau, 800 bucks in ETH, 800 bucks in Ondo, 800 bucks in Hype, and so on and so forth down the list. These are just minor holdings.

[00:01:49]Feel free to pause and dive into them if you wish to do so. Where the heavy holdings are are over on Aave. And I do trust Aave. Aave did not have an exploit. It was an incident with Kelp DAO and ultimately DeFi came together to solve that problem and ensure that there was no bad debt for anyone out there.

[00:02:07]Well, I have 42,000, nearly 43,000 dollars of wrapped Bitcoin supplied over here. I have 41,000 dollars of wrapped ether 5 Ethereum supplied over here. I have 12,000 dollars of CBTC. I have 6200 bucks of wrapped staked ETH. I have 1500 bucks of LINK. I have 1300 bucks of UNI.

[00:02:24]I have 1,000 bucks of Ave and I have a little bit of USDC over here. What's more important is the mechanism that I'm running. I've shifted my portfolio to be cash flow heavy, to be more growth oriented. So, in other words, I am not focusing on generating high APR right now. I am not focusing on putting thousands of dollars per month in my pocket. What I am focusing on is ensuring that my strategy runs its course, the market goes down, and then from there, I ultimately am able to accumulate assets at a better price and when I'm back at these current prices or even higher prices than this in the future, I'll be at significantly greater profits. And that's what I do with Ave lending and borrowing in something called the flywheel. Now, very quickly, before I dive into that, if you guys want to know exactly how you can open up your first liquidity position step-by-step, and I mean literally me showing you the exact buttons to click, I actually created a course that shows you exactly how to do that. It's pretty cheap, but it does cost a couple bucks because you do have my personal AI assistant to help you every step of the way. But understanding how to deploy into liquidity pools is a crucial aspect for the flywheel that I'm about to show you. And that course right there shows you all the way from the money that's in your bank to getting it on Coinbase, setting up your wallet, getting into your wallet, and then from there, swapping, deploying into liquidity pools, the whole nine yards. And more importantly, it shows you what to do after you're in liquidity pools and help you scale up. Now, the strategy that I'm running right here, we call it the blue chip flywheel. Let's go ahead and dive over into metrics finance. We are lending these assets out, stuff like Ethereum as well as Bitcoin, and that has full market exposure. If the market goes up 2x, 3x, our collateral goes up 2x, 3x, our borrow stays the same because our borrow is in a stablecoin.

[00:04:07]If the market declines 50%, well then guess what, our collateral also declines 50%. That is a play here, right? But at the same exact time, what we're doing with this borrow is the more important aspect. This $30,000 has been recycled a couple times. In other words, the first $20,000, that's actually sitting back over here as collateral in CBTC as well as wrapped staked Ethereum.

[00:04:32]Those are the proceeds from this first $20,000. And then I borrowed another $10,000 and I parked it amongst another $10,000 that I brought from my wallet into liquidity pools. And that's the uh right over here, Ethereum to USDC as well as wrapped Bitcoin to USDC. And ultimately, if we dive into these positions, let's just take a look. The goal here is to buy Ethereum on the way down. You could see that I started with 86% USDC in this pool. I now have 63% USDC. That means that some of my USDC, about 2,000 bucks or so, has been shifted into Ethereum. It's slowly dollar cost averaged into Ethereum. And if you take a look over here on the right-hand side, you could see that about 1,700 USDC was converted to about 0.8 Ethereum at an average price of 2184. So this is lowering my cost basis.

[00:05:21]And to show you the full extent of this, if we go down to the very bottom price of our range, which in this case scenario is 1550. So let's just call it 1540. We dip slightly below. I will close out this position as soon as that happens. And the reason why is because it is now officially dollar cost averaged all of the USDC into Ethereum.

[00:05:41]You'll see that I start with 64% USDC and And over here I end with 0% USDC and all Ethereum. But I have 3.88 Ethereum.

[00:05:50]And that 3.88 Ethereum at my initial entry price, my initial entry price being 2299 or so, is worth roughly 8923.

[00:06:02]Meaning that I deployed a total of 7450 into this pool. And at my break-even price, at the price that I entered this pool at, I have 8900. That's assuming the market moves all the way down, I exit the pool when I just simply hold that Ethereum till my break-even price.

[00:06:18]That's the goal here. And of course, I'm not going to hold it just to my break-even, I'm going to hold it past there. But the point is this money can be re-collateralized over on Aave as it goes down, as the prices move down. But the reason why I'm not focusing on yield here is because this difference right here, the difference of having roughly a profit of about 1500 bucks at my break-even price, that's a greater number compared to the amount that I would uh make if I was just simply relying on the APR. Now, the APR in this specific position, it's decent, but it's not good. Um it's roughly about 12% or so. And I've earned about 70 bucks. So again, that 70 bucks adds up, and I can use that to repay debt, uh cover any interest I have on my loan, or even just increase my collateral. But at the same time, it's not going to drastically move the move the needle. What it does instead is it ensures that I am earning fees instead of paying fees while I am dollar cost averaging on the way down. And this is the same exact thing I'm doing over here with wrapped Bitcoin to USDC.

[00:07:20]Except this one hasn't really bought much Bitcoin yet because Bitcoin has not been going down as much as Ethereum yet.

[00:07:27]You'll see that I started with about 8% wrapped Bitcoin and and I now have 10%, right? So the goal is more wrapped Bitcoin over time because that means the market's moving down, and we are slowly being sold into wrapped Bitcoin. And this one is doing a lower APR at about 5.3%. so this is one that I'm watching and I will be making adjustments to uh very soon. So if you guys want to stay tuned, make sure you drop a like and subscribe notifications turned on so you can stay updated with that. Now something different that I just integrated into my portfolio is the Hype flywheel. So I just exited a Hype to Ethereum position that was severely out of range. You can actually see it right over here. Um this position was in range, it did well for a while, I was making good money. Some days I made um 40, 50 bucks or so. But ultimately it goes all the way out of range and there's not really any sign that's coming back anytime soon. So what I do is I take all of that money uh that's now sitting in Ethereum because Hype went on a rip. Hype outperformed Ethereum so now my position is full on Ethereum. It was roughly um about 5.09 Ethereum. So I take that 5.09 Ethereum and I go and I lend it out over on Hype Lend in addition to the Hype that I was just holding in my wallet. And then I borrowed 5,500 bucks in USDC. And that 5,500 bucks in USDC got parked into a Hype to USDC liquidity pool. And guess what? It does the exact same thing. On the way down, it is going to buy Hype.

[00:08:49]On the way up, it will sell that Hype into USDC but I can always repay the borrow and then ultimately I execute at a better time. But the goal of this strategy is to give me something to do while I'm waiting for Hype to kind of get back down to a reasonable level. Uh because I do think Hype is a little inflated right now. I think it has some retracement to be done. Uh just early investors or people that invested at the lows getting out before it can go higher basically. I do think Hype can reach 90 bucks. I do think it could go beyond that. But at the same time uh it just went on a complete run over the course of May 13th, it went from $38 all the way to May 24th it went to $63.

[00:09:28]That right there is a huge run over the course of about 10 days or so. So again needs to see a little bit of retracement before I'm happy to buy Hype and put it back in a pool. Um, so rather collateralize that Ethereum, grab the USDC and use the borrowed funds to execute on a better strategy.

[00:09:43]But yeah, guys, if you have any questions as to what I'm doing in the market, feel free to comment them down below and I'm happy to make some content around it clarifying it. And of course, if you are new here, you want to somehow take all of these things that we just talked about today and actually apply it and do one thing today that sets you on at pace uh to make some changes in your portfolio and get some great results, then go ahead and pick up that DeFi course that I created. It's going to be linked at the top of the description and once again, it shows you the exact buttons to click. And if I might say, over the past 3 years that I've been uh kind of coaching and consulting people within the DeFi industry, the number one problem that I found is most people are too scared to start because they have analysis paralysis. They want everything to be perfect in the first run. And the main goal is that you just get your reps in and that's what we help you do in the course. So, if you found this video informative, make sure to drop a like, subscribe, notifications turned on, and I'll see you guys in the next one. Peace out.