Part 3/6:
The podcast shifts to the more exciting yet perilous world of leveraged trading. They emphasize how participating in yield farming and leverage can yield high rewards but at substantial risk. Stephen illustrates this with his personal experience, detailing how engaging in a 10x leveraged position dramatically increased his exposure to yield fluctuations, leading to potential liquidations due to minor price movements.
Both Mara and Stephen discuss strategies for leveraging YTs to maximize returns while also being clear about the inherent risks of liquidation due to market volatility. They also introduce the concept of speculative trading in low liquidity markets, cautioning listeners to remain vigilant in their approaches.