Cycle Survival Guide: How to Adjust Your Lista Strategy in Bull and Bear Markets
The cyclical nature of the crypto market is akin to the changing of seasons; successful DeFi participants understand how to adjust their strategies according to different 'seasons.' In Lista DAO, your operations should also flexibly change with the transitions between bull and bear markets.
Bull Market Offensive Strategy: Aggressive Expansion, Amplifying Returns
1. Improve Capital Efficiency: During an upward trend in asset prices, leverage can be cautiously increased. For example, adjust the collateral ratio from 300% to a more moderate 200%-250%, borrowing more USD1 to capture high-yield opportunities in the market (such as participating in new IDOs or liquidity mining).
2. Focus on Yield-Generating Asset Collateral: With a high risk appetite in a bull market, use more assets like slisBNB and wstETH as collateral. While enjoying the potential for asset appreciation, their inherent yields can add extra benefits.
3. Actively Participate in Governance: The bull market is a time of rapid protocol development and frequent proposals. Actively participating in veLISTA voting may influence decisions favorable to you (such as listing popular assets as collateral).
Bear Market Defensive Strategy: Preserve Strength, Steady Appreciation
1. De-leverage, Increase Buffer: The primary task is to reduce risk. Prepay part of your debts, significantly increasing the collateral ratio to 350% or even higher, leaving ample safety space for further market declines.
2. Shift to Stable Collateral: Convert more collateral to blue-chip assets like BTCB and ETH, which have relatively low volatility and excellent liquidity. Reduce or exit high-volatility asset collateral in innovative areas.
3. Focus on Stablecoin Arbitrage: As market uncertainty increases, arbitrage strategies become more attractive. Utilize the low borrowing rates of USD1, borrowing and depositing into stable channels like Binance Earn, earning a predictable interest spread, becoming a 'cash cow' in a bear market.
4. Accumulate and Position: The bear market is a good opportunity to accumulate LISTA tokens and lock veLISTA for a longer period. During this time, token prices and locking costs may be lower, preparing governance rights and dividend eligibility for the next bull market.
Remember to maintain a sense of caution in the bull market and a sense of hope in the bear market. Flexibly utilize Lista's tools to navigate through cycles. @ListaDAO
