Transcription
Welcome back, guys. We're in with another video. I mapped out exactly how to retire in DeFi over the next decade, and that is what we're diving into in today's video. We're breaking it down a step-by-step approach, even if you're a complete beginner. You're going to get the phased approach to how you can save up, start using DeFi to your advantage, generate cash flow, and use it to fund your life over the next decade. Let's dive in.
Okay, getting straight into it, guys. I do have to start off with a couple of assumptions here. We are using a systematic accumulation strategy here to help you map a retirement plan for DeFi over the next decade, and we are assuming an average US-based annual salary of $63,000. Okay, that's going to vary country by country, jurisdiction by jurisdiction, so take that with a pinch of salt. Reverse engineer or tweak the numbers for your specific jurisdiction, and this is over a 10-year projection.
Okay, we're dividing it into three parts, whether you want to take a lot of risk to begin with or just very little, whether that's 2%, 3%, or 5% monthly yield targets. We're going to break down how you can get get there with a four-step breakdown, running the math and showing you the plan. Okay?
So, how do we replace a $63,000 salary with monthly cash flow and income from DeFi? Well, that breaks down to about $5,250 per month. It is broken down depending on how much risk you ultimately want to take. With a 2% per month rule, i.e., if we're able to put capital to work generating 2% per month on $262,000 is going to allow you to have $5,200 of monthly cash flow income. If we can take a little bit more risk or, you know, arguably a more balanced approach because it's very possible to be doing this even with stable coins um getting that 2% per month. So, pushing it to 3% per month means you would need to have about $175,000. That is going to be using a combination of stable strategies, liquid staking, and a little bit of liquidity pools. And then, if you're more active or want to be a little bit more aggressive in terms of how much capital you're actively managing across liquidity pools, generating 5% per month is very, very doable. And that means that 5% per month, in order to generate $5,200 in cash flow, you're going to need roughly $105,000 to deploy and manage as part of your portfolio.
So, as you're looking at these numbers, I know these might seem quite large for some people, and for others, you might be thinking, "Okay, well, I've actually already got $100,000 that I could put into DeFi." Or maybe you've only got half of that. Everyone has a different starting point. Um you could be generating very consistent monthly cash flow with decentralized finance. And again, if you don't have the capital, that's exactly what we want to get at in this next slide because you can build this over the next 5 to 10 years. You probably have some capital if you're watching this video in the first place, but if you're just starting from ground zero, you can use those first 1 to 3 years to stack and build your base, okay? Everyone has to start somewhere. Absolutely build that base by just saving money and using only stable coin strategies in the first couple of years here to compound your efforts. Maybe you're working a 9-to-5, maybe you're running some sort of business. You obviously have some form of income generation at this moment. And so, use the first 1 to 3 years to just stack cash as much as possible and use stable coin strategies to your advantage. It's very possible to be doing 2% per month on stable coins. Um I'm going to show you a couple examples in a moment, but use those first couple years to just build cash. Do not take more risk than you need to if you don't have large amounts of capital, but if you can get 30 to 40,000 dollars in those first 1 to 3 years stocked, it's going to put you in an amazing place for years 4 through 7 because that's when you get to start reinvesting into liquid staking protocols, into liquidity pools, and actually generating super consistent cash flow that is actually continuing to compound over time. And then as you get towards, you know, that three, four, five year, six, seven year mark, you're going to have a really strong portfolio and that allows you to move into phase number three, which is that kind of year seven or eight onwards. So, you get to de-risk into income. You don't have to be as aggressive because your compounding effects have been doing hard work for you and you can use the nest egg that you've built in those first few years to really generate super consistent yield and income.
So, everyone has to start somewhere. You might already be at a point where you're in phase two. You've got, you know, 30, 40, 50k already. You start reinvesting. You start generating consistent cash flow and you can get very good returns. So, think about where you are in this journey and if you've got a decent chunk of capital, you're probably already into that phase two. And obviously, if some of this is sounding like foreign language to you, you can check out all the resources that we have in the UIG. Check out the links below this video. But like we said a moment ago, it's very possible to be doing some very good yield in that phase one with even just that stable coin lending strategy, okay? When you're compounding and stacking in those first couple years, it's super important you don't lose money, okay? The heavy lifting is done in the first few years and if you jump over to protocols like Pendle here, right now you're getting and have the ability to do 15 to 20% fixed APY with some of these PT strategies, okay? That's about 1 and 1/2 to 1.7% per month, okay? That's doing a lot of the heavy lifting for you just doing stable coin strategies. You can look at other stable coin looping plays where you're getting 20% plus, you know, this position here for PYUSD USDG is quoting 48% right now using a bit of looping but just on stable coins. And then you can check out protocols like Euler which allow you to actually take PTs from Pendle and increase that yield even further. You could be getting, you know, 25 to 30%. That gets you to that 2% per month mark by just using stable coins, okay? Keep those in mind as you continue to scale your portfolio because you don't need to risk losing capital in those first few years.
When you evolve into phase two, that allows you to start doing more liquid staking and liquidity pool positions that increases your yield potential, okay? If you're able to get that, you know, 15 to 20% yield on stable coins in the first couple years, you can then get up to 25, 30, 40, even 50% um when you move into phase two by doing liquidity pool management. And yes, you do have to actively manage this a little bit more than just stable coin strategies, but when you have a little bit of extra capital and a little bit of extra time, the compounding effects of that are going to mean that you can be generating some really good yield. And then obviously as you move into phase three, you can think about, you know, using aggregators um like Euler Finance, like Beefy, like some of the other ones that we mentioned and actively managing liquidity pools, even using leverage in some of your liquidity pools when you become more proficient and more of an expert in this area is going to allow you to get, you know, 30 50, even 60 or 70% in certain years, okay? This is the strategy. This is the phase approach to you being able to stack and compound that capital in the first couple years and then get it to a point where you're generating consistent cash flow after your initial saving and stocking does the heavy lifting for you. So, focus on stable coins to begin with. Start bringing in liquidity pool strategies as you get more proficient and as you have more capital because you're going to be able to generate even more yield. And then, like we said, years 1 to 2 is kind of building that muscle. Years 4 to 7 is doing more heavy lifting. And then, once you've got a larger stack, it becomes a little bit easier and a little bit less of a burden to generate that consistent cash flow every single month. Okay?
Lots of other considerations here like smart contract diversification, you know, depegging when it comes to certain assets. Depending on your jurisdiction, you're going to have tax implications. And don't panic when drawdowns happen. Obviously, we help with all of these intricacies and details within the UIG. So, like I said, if you're feeling lost or this is sounding like a foreign language, check out the links in the description below this video. We are here. We're ready to help. We've been working with hundreds of thousands of clients over the past few years to help them generate consistent income and consistent yield. So, check out those links below. And that is your path to retire with DeFi over the next 10 years. Again, people come into this sometimes thinking they're going to generate a million dollars overnight. That is not how this works. If you're dedicated and committed to consistent cash flow and yield generation, having a 10-year outlook really should not be that difficult for you. Starting with the basics, stocking that cash, and when you look at these numbers, generating that $5,200 per month suddenly becomes very attainable when you take that 5 to 10-year outlook.
That is it for this video, guys. Check out the link below. If you have questions, drop them in the comments, and we'll catch you in the next one.