DeFi Portfolio Review w1.1

I typically do this portfolio review on Fridays at the end of day. I'm delayed because I was trying to find my voice on what exactly to say.

I'm satisfied with the returns of my portfolio. Which is aligned with my portfolio strategy and expectations that Bitcoin dominance (BTC.D) will increase. The effects of BTC.D increasing means more of the crypto market cap (mcap) will move into BTC, causing base/quote pairs with BTC to weaken which is the secret.

My alpha in this strategy is to monitor market structure and rotate assets. Rotate strong performing assets. For instance, assets with higher valuation into assets with weaker valuations. This strategy is how I intend to compound and preserve wealth.

By rotating from strong assets into weaker ones at strategic valuations, I can acquire more assets to profit from as they rebound. This is an uncertainty, because no one really knows if this rebound will happen. Therefore, it's important for me to understand why I'm rotating from a strong asset into a weaker one: what's the reason, why do I have conviction, what's the worst case scenario, and how do I hedge my risk.

I'll answer these questions in a future Portfolio Tracker w3.0, so that you clearly understand my strategy for each position:

• What is my expectation for this investment?
• Why do I have this conviction?
• What is my risk / worst case scenario?
• How do I hedge my risk / loss of wealth?

Performance

The portfolio is performing as expected. The pairs with MATIC are generating high APR because of the momentum of the strong asset pair i.e. BTC & ETH. APR is giving me a compounding effect, versus just converting these assets for one another. When I put them in a CLP, I not only convert my assets (which is my strategy), I also collect these fees.

I see people in DeFi who are trying to generate consistently high monthly income. In my experience, that income comes at a cost, which is the preservation of my wealth in blue chip (BC) assets and my purchasing power. Having accumulated assets over the years, I'm trying to preserve my portfolio value.

In DeFi, during this market cycle I chose to deploy CLP's only in particular regions of undervaluation, which are out of range CLP's waiting for price to reach my valuation region.

It's important to remember that this is not a copy and paste strategy, every cycle will be different.

MATIC Pairs: So far, I'm happy to be accumulating MATIC from converting some ETH and BTC at my deep value regions. Giving me high APR as I accumulate.

ETHBTC: I'm ok with this position also at 8.37% APR, yes, it's bringing down my overall weighted APR average. But this is to be expected with CLP's that have a wider range, as I have with this position.

AEROETH: I'm not sure if I'm ok with my position strategy, currently out of range. I saw a strong bounce on this pair. Need to adjust range to bring it closer to the money i.e. more active price ranges for me to DCA and accumulate my ETH into AERO. Think about this over Sunday and update next week's Portfolio Tracker w2.0.

EE - Epictetus Evolved
EpictetusEvolved.eth
@EpictetusE