Instructions: Review the 5 available strategies below, then allocate your $10,000 across them in the allocation table. Your total must equal exactly $10,000.

Available Strategies

Strategy APR Risk Level Key Risks & Characteristics
1. ETH/USDC Liquidity Pool
(Uniswap V3)		 30% High
  • Impermanent Loss: Exposed to ETH price volatility
  • Smart Contract Risk: Uniswap protocol vulnerability
  • Liquidity Risk: Concentrated liquidity positions
  • Yield: Trading fees (0.3%) + LP incentives
2. USDC Lending
(Aave Protocol)		 8% Low
  • Smart Contract Risk: Aave protocol (heavily audited)
  • No Price Risk: USDC is stablecoin
  • No Impermanent Loss: Single-asset deposit
  • Yield: Interest from borrowers
3. ETH Staking
(Lido Liquid Staking)		 4% Medium
  • Price Volatility: Full ETH price exposure
  • Slashing Risk: Validator penalties (rare with Lido)
  • Smart Contract Risk: Lido staking derivatives
  • Yield: Ethereum staking rewards (~4% APR)
4. New Protocol Yield Farm
(Unaudited DeFi 2.0 project)		 100% Very High
  • Rug Pull Risk: Unaudited smart contract, anonymous team
  • Token Dump Risk: Emission-based rewards, high inflation
  • Impermanent Loss: Volatile token pair
  • Liquidity Risk: Low TVL, potential exit problems
  • Yield: Unsustainable token emissions
5. Hold USDC
(Self-custody wallet)		 0% None
  • No Yield: Zero returns
  • No Smart Contract Risk: Self-custody
  • No Price Risk: Stablecoin peg (assumes USDC stability)
  • Opportunity Cost: Missing potential yields

Your Portfolio Allocation

Strategy Allocation ($) Percentage (%)
1. ETH/USDC Liquidity Pool (30% APR) 0%
2. USDC Lending on Aave (8% APR) 0%
3. ETH Staking (4% APR) 0%
4. New Protocol Yield Farm (100% APR) 0%
5. Hold USDC (0% APR) 0%
TOTAL $0 0%
Enter your allocations above. Total must equal $10,000.

Allocation Rationale

Instructions: Explain your allocation strategy in 2-3 paragraphs. Address:

  • Your risk tolerance and how it influenced your choices
  • Why you chose these specific percentages
  • How you balanced high-yield vs. low-risk strategies
  • Which market scenario (bullish/bearish/sideways) you think will occur and why

© Joerg Osterrieder 2025-2026. All rights reserved.