Exercise 9: Yield Optimization Framework
⏰ Time Investment: 60 minutes 🎯 Goal: Build your yield optimization strategy and framework
📚 Required Reading Integration 📖 Primary: Lesson 9: Yield Optimization Strategies 📖 Supporting: Lesson 2: The Mathematics of Lending and Borrowing
💰 Phase 1: True Yield Calculation (20 minutes)
Exercise 1: Calculate true yields
Position: $10,000 USDC supply
Scenario A: Aave on Arbitrum
Base APY: 5%
Gas per transaction: $0.50
Transactions/year: 12
True yield: _____%
Scenario B: Morpho on Ethereum
Base APY: 5.5%
Gas per transaction: $25
Transactions/year: 12
True yield: _____%
Which is better? _____ (Why: _________________________________)
🔄 Phase 2: Looping Analysis (20 minutes)
Exercise 2: Loop strategy calculation
Setup:
Asset: JitoSOL (staking yield: 7%)
Leverage: 3x
Borrow rate: 5%
Calculate:
Net yield: (7% × 3) - (5% × 2) = _____%
Break-even borrow rate: _____%
Risk level: _____ (High/Medium/Low)
Exercise 3: When would looping become unprofitable?
If borrow rate exceeds: _____%
Monitoring needed: [ ] Yes [ ] No
🌐 Phase 3: Cross-Protocol Optimization (20 minutes)
Exercise 4: Rate comparison
Current rates:
Aave USDC: _____%
Morpho USDC: _____%
Spread: _____%
Decision:
Should you move funds? [ ] Yes [ ] No
Minimum spread to justify move: _____%
Gas cost consideration: $_____
📊 Optimization Framework
Exercise 5: Create your optimization plan
Strategy:
Target yield: _____%
Risk tolerance: _____
Rebalancing frequency: _____
Minimum spread to act: _____%
✅ Action Plan
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