Conservative Strategies (No Borrowing)

⚠️ Reminder – Not Financial Advice These examples describe how one could use PrimeFi conservatively. They are not recommendations or guarantees of safety.

Conservative strategies do not use borrowing. You cannot be liquidated because you are not taking debt. Main risks are protocol risk, smart contract risk, and asset price risk.

1. “Set‑and‑Forget” psXDC Yield Stack

Goal: Capture XDC staking yield plus protocol incentives without leverage.

Assets used: XDC → psXDC

Conceptual steps:

  1. Stake XDC using PrimeStaking (or equivalent) to receive psXDC.

  2. Deposit psXDC into PrimeFi and receive interest‑bearing ppsXDC.

  3. Optionally lock pLP (PrimeFi’s liquidity token) so your psXDC deposit qualifies for PRFI incentives, if available.

Return drivers (qualitative):

  • XDC staking yield embedded in psXDC.

  • PrimeFi deposit APY (if any) from borrowers.

  • PRFI emissions and/or pLP‑related rewards.

Risks:

  • XDC price volatility (you are long XDC).

  • PrimeFi protocol and smart contract risk.

2. USDC “Parking Lot”

Goal: Park stablecoin liquidity with relatively low volatility risk.

Assets used: USDC

Conceptual steps:

  1. Deposit USDC into PrimeFi.

  2. Optionally lock some pLP to boost deposit APY if the UI shows meaningful extra rewards.

Return drivers:

  • Base USDC deposit APY (interest from borrowers).

  • PRFI + pLP incentives, depending on current configuration.

Risks:

  • USDC de‑peg risk (generally low but non‑zero).

  • PrimeFi protocol risk and smart contract risk.

3. 50/50 Treasury Base (psXDC + USDC)

Goal: Blend yield (psXDC) with stability (USDC) without borrowing.

Assets used: psXDC, USDC

Conceptual steps:

  1. Allocate a fraction of your holdings to psXDC for yield.

  2. Allocate the remaining fraction to USDC for stability / dry powder.

  3. Deposit both into PrimeFi as suppliers.

  4. Use one pLP position (if desired) to activate emissions on both assets.

Why this can be useful:

  • psXDC side captures staking yield and any additional incentives.

  • USDC side stabilizes the treasury and can be redeployed quickly.

  • Still no liquidation risk, because no borrowing is used.

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