Portfolio Bucketing & Final Notes
⚠️ Non-Financial Advice This section provides a framework for thinking about risk allocation. It is not a recommendation or allocation plan.
For larger holders or entities, it can be helpful to think in terms of risk buckets.
1. Core Treasury (Low Risk)
Focus on non‑leveraged positions from the Conservative page:
psXDC “set‑and‑forget” yield stack.
USDC “parking lot.”
50/50 psXDC + USDC base.
Characteristics:
No liquidation risk (no borrowing).
Yields mainly from staking, borrow interest, and protocol incentives.
Main risks: protocol/contract risk and underlying asset volatility.
2. Structured Yield (Medium Risk)
Borrowing strategies with no recursive looping:
psXDC collateral → borrow USDC (stay long XDC).
USDC collateral → borrow XDC → stake to psXDC.
psXDC collateral → borrow XDC for operations.
Characteristics:
Liquidation risk exists but is manageable if Health Factor is kept high (e.g. ≥ 2.0).
Yields come from spreads between psXDC yield and borrow APRs, plus incentives.
Requires periodic monitoring and risk management.
3. Degen Sleeve (High Risk)
Only for small, high‑risk capital allocations:
psXDC → borrow XDC → stake → psXDC loop when math is clearly favorable.
USDC + psXDC barbell loops and other complex structures.
Possibly automated liquidation strategies.
Characteristics:
High tail risk and sensitivity to market conditions.
Suitable only for advanced users who can monitor positions and systems closely.
Should be sized such that a complete loss would not threaten overall solvency.
4. Final Reminder
All strategies described across these pages are examples, not recommendations.
Before implementing any position:
Check live APRs, utilization, and risk parameters in the PrimeFi UI.
Stress test your assumptions (e.g., sudden XDC drawdown, APR changes, de‑peg scenarios).
Decide in advance:
How much you are willing to lose in worst‑case scenarios.
What Health Factor you consider your “panic line” for reducing risk.
🧠 Always do your own research. DeFi can be powerful, but it is never risk‑free.
Last updated