Sprott Uranium Miners ETF (Derivatives) (URNM)

$urnm IMO all dips below $100 should be bought over the course of this year.

Long term play.

Something I miss is writing about strategies that may not be able to handle size but are fun and yieldy -- and at the very least illustrate farming concepts.

So here's one I love (despite it being for small fish):

Dirty Hedge Uranium Funding Farming

TL;DR:
Buy some xU3O8 on @uranium_io, collateralize it on @okutrade's @Morpho instance, and borrow at 50% LTV, open a 2x lev position on $URNM on @HyperliquidX.

Net APY: 100-200%
Let's break down those steps though and how it manages to get 100-200%.

1) Bridge your principal in USDC over to @etherlink via https://t.co/NOGZ4UMoao
2) Bridgeswap some gas over if you need some via @JumperExchange
3) Buy xU3O8 via @uranium_io
4) Collateralize it via @okutrade's Morpho Instance
5) Borrow at 50% LTV
(35% price drawdown to liquidation, so be careful)
6) Bridge USDC to @arbitrum
7) Deposit to @HyperliquidX
8) Open 2x Short on
That's it.

NOW, this is a DIRTY HEDGE. URNM is not 1:1 with Uranium.

URNM is tokenized exposure to Uranium mining via Sprott ETF. And while it tracks Uranium price loosely (1.5-2 beta), it is not the same.
So this is delta hedged but not delta neutral.

On top of that, there is almost no liquidity to borrow on
Oku (only 50K USDC).

On top of that, the HL order book for this is fairly thin, so limit orders or very careful and well-times market orders (during spikes above index rate) are recommended.

But here's the math:

LTV * (usdcYield - usdcBorrowRate)

Now, the funding rate is averaging about 300% at the moment, but let's assume it's 100%. At 2x leverage, that's effectively 200% on the borrowed USDC margin.

SO:
50% * (200% - 0.5%)

Which is 99.75% APR on a dirty hedged uranium play.

ONE MORE NOTE, the IV on Uranium is 65% right now but has been as high as 88% recently.

That means there's a fairly high chance that Uranium does drop enough to trigger liquidation if you're not watching carefully.

To mitigate this danger, I would consider taking the funding earned and bridging it over to Etherlink and paying down the debt as frequently as possible OR using an even lower LTV.

If you are very dynamic, you could do a 3x short, but that's playing with fire if you're not fairly expert at delta hedging with perps.

Something I miss is writing about strategies that may not be able to handle size but are fun and yieldy -- and at the very least illustrate farming concepts.

So here's one I like (despite it being for small fish):

Dirty Hedge Uranium Funding Farming

So, here's one I like (despite it being for small fish):
Buy some xU3O8 on @uranium_io, collateralize it on @okutrade's @Morpho instance, and borrow at 50% LTV, open a 2x lev position on $URNM on @HyperliquidX.

Net APY: 100-200%
Let's break down those steps though and how it manages to get 100-200%.

1) Bridge your principal in USDC over to @etherlink via https://t.co/NOGZ4UMoao
2) Bridgeswap some gas over if you need some via @JumperExchange
3) Buy xU3O8 via @uranium_io
4) Collateralize it via @okutrade's Morpho Instance
5) Borrow at 50% LTV
(35% price drawdown to liquidation, so be careful)
6) Bridge USDC to @arbitrum
7) Deposit to @HyperliquidX
8) Open 2x Short on $URNM
That's it.

NOW, this is a DIRTY HEDGE. URNM is not 1:1 with Uranium.

URNM is tokenized exposure to Uranium mining via Sprott ETF. And while it tracks Uranium price loosely (1.5-2 beta), it is not the same.
So this is delta hedged but not delta neutral.

On top of that, there is almost no liquidity to borrow on
Oku (only 50K USDC).

On top of that, the HL order book for this is fairly thin, so limit orders or very careful and well-times market orders (during spikes above index rate) are recommended.

But here's the math:

LTV * (usdcYield - usdcBorrowRate)

Now, the funding rate is averaging about 300% at the moment, but let's assume it's 100%. At 2x leverage, that's effectively 200% on the borrowed USDC margin.

SO:
50% * (200% - 0.5%)

Which is 99.75% APR on a dirty hedged uranium play.

ONE MORE NOTE, the IV on Uranium is 65% right now but has been as high as 88% recently.

That means there's a fairly high chance that Uranium does drop enough to trigger liquidation if you're not watching carefully.

To mitigate this danger, I would consider taking the funding earned and bridging it over to Etherlink and paying down the debt as frequently as possible OR using an even lower LTV.

If you are very dynamic, you could do a 3x short, but that's playing with fire if you're not fairly expert at delta hedging with perps.