Sep 26 • Crypto Market Content
🚀 Two Numbers That Keep My Leverage From Blowing Up
In this ~5-minute highlight from Friday’s Premium Live Call, I break down the two risk rules I actually run when I’m leveraged on money markets like Rhea and Alpend-style desks.
Leverage Ratio (LR) = supply in dollars Ă· net worth in dollars. I keep LR at or below 2.0. That caps how big the borrowed stack can get relative to what I actually own.
Hedge Ratio (HR) = volatile borrowing debt ÷ volatile collateral × 100. I keep HR at or below 35%. That way a sharp drawdown doesn’t turn “productive debt” into a liquidation story.
Context from the call: juicy Alpend-style supply yields (like USDCX APYs) often look “too good” because they’re bootstrapped with validator incentives and VC marketing budgets, not free money. The yield can be real while the structure is temporary. LR and HR are how I stay solvent either way.
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🚀 Two Numbers That Keep My Leverage From Blowing Up
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