How to Ensure You Don't Get Liquidated While Mining $COMP

📰You can find this video and more weekly exclusive DeFi posts I create for The Defiant here: thedefiant.substack.com/p/top-defi-yield-farmer…

📺This DeFi tutorial is a follow-up to my last video on "How to Maximize Earning $COMP By More Than 5X Using Instadapp." Watch it here: youtu.be/lcLqPLRFfro

In this video, I cover all the risks I've been considering as I lend and borrow stablecoins on Compound Finance to earn the $COMP governance token.
1. Smart contract bug risk
2. A liquidity crunch
3. Admin key or governance compromise
4. A stablecoin dollar-peg fails or oracle attack
5. Ignorance to borrowing interest ballooning debt owed and causing liquidation
6. Liquidation of collateral or use of volatile assets in a leverage position

Then, I cover 3 ways to deleverage my stablecoin position:
1. Deposit more collateral
2. Pay back debt with more USDT
3. Use the Save/Unwind recipe on Instadapp to withdraw collateralized DAI, swap to USDT, and pay back to my USDT debt

Helpful Resources:
🛠️ Try the Instadapp tools referenced in this video at: dsa.instadapp.io/compound
🛠️ Try Compound Finance at: app.compound.finance/
🛠️ You can see the Market Distribution Table for Compound which shows how many $COMP tokens are being distributed daily to the lenders and borrowers of 9 different markets: compound.finance/governance/comp
🛠️ Here's the original tweet referencing most of the risks I called out in this video: twitter.com/DeFi_Dad/status/1274481475576987650
🛠️ You can consider smart contract cover (DeFi insurance) and even get a quote for digital assets on different DeFi apps like Compound at Nexus Mutual: app.nexusmutual.io/#/SmartContractCover

For more DeFi tutorials like this, subscribe to DeFi Tutorials with DeFi Dad on Youtube.
- Video by: DeFi_Dad
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Disclaimer & Risks: Instadapp and Compound did not pay me to produce this video. This is not financial advice and you should approach all DeFi applications, wallets, and protocols with caution. Please be aware there is always risk in using DeFi, including technical risks (ie smart contracts hacks), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also there is risk in using leverage, especially if the dollar-peg for USDC, DAI, or USDT fail, which could cause an Instadapp leverage position using this Maximize COMP Mining to be liquidated and lose invested funds.
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