You want to participate a launchpad, but they ask you to lock a specific token to to be able to join it? Here is a simple trick for you.

Without further ado, I will explain the trick by giving an example.

For instance, Binance occasionally organizes Launchpads/Launchpools. A coin/token is launched or listed on the platform and as an event you can farm the token to be listed by holding a certain amount of BNB in your Binance account. For example, Binance will list NTRN soon: https://launchpad.binance.com/en/

To participate in Launchpool, you can lock stable tokens such as TUSD as well as BNB. However, the reward allocated to locking BNB is much more than others, so locking BNB makes more sense in terms of the reward.

https://preview.redd.it/lg35zgubpftb1.png?1626&format=png&auto=webp&s=fbe0e637ce91c804c77139582ff0fa85d2a75c2b

However, if you are not a BNB investor, you may not want to lock a large amount of BNB because if the BNB price drops after you join the launchpool, you may lose money in total even if you receive a good amount of reward.

To avoid this risk, we will take advantage of decentralized exchanges and use lending platforms. For example, on Venus protocol, you can lend USDC to the platform and as a return you can borrow BNB: https://app.venus.io/

https://preview.redd.it/w56gpldopftb1.png?1521&format=png&auto=webp&s=0aac570ba92d895d897c7109177ec828cd9bbbb0

For example, at the moment supplying USDC gives 7.56% apy. This is already a nice return. However the trick is that you can use USDC as collateral and you'll be able to borrow BNB from the platform. Borrow apr is also 0.92% at the moment . Therefore, without even joining the launchpool you're already making money at the moment (Don't forget that the apr is changing in time).

Now, you can withdraw the BNB you received in return for the USDC you provided to the platform to Binance and join the launchpool. Thus, it does not matter whether the BNB price rises or falls. Because in any case, you will be able to pay back the same BNB you received (plus the little borrowing interest) later to venus and withdraw the same amount of usdc you've lended (plus the rewards from supplying).

Finally at the end you'll earn both the rewards from supplying usdc on Venus and the rewards from the launchpool on Binance. Also don't forget that you need to pay a little more BNB (based on the borrowing apr for BNB), but that's not much.

Things to need to pay attention:

Learn basic risks when you use DeFi such as liquidation risks, smart contract risks, wallet safety etc.

Never use the entire BNB limit you can borrow against the USDC you supplied. For example I never borrow more than 70% of the limit. Thus, you minimize the risk of liquidation which may happen due to major price change.

Only use reliable and audited DeFi platforms with high TVL such as AAVE or Venus.

Good luck!

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