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Once you are familiar with the basic arbitrage strategies of Lista DAO, the next step is to figure out how to make your money grow faster. This article will introduce you to some advanced techniques to upgrade from a purely passive arbitrage mode to actively managing your yields.
**Adjust Collateralization Ratio According to Market Trends**
When the market is trending upward, you can moderately lower your collateralization ratio, allowing you to borrow more USD1 to participate in arbitrage. Conversely, when the market starts to pull back, quickly increase your collateralization ratio mainly to avoid liquidation. Automated tools like DeFi Saver and Instadapp can help you set trigger conditions to automatically adjust, saving you from constantly monitoring the market.
**Cross-Protocol Arbitrage Is Also a Skill**
Interest rates vary across different lending protocols—check out Lista DAO, Aave, Compound, and others. If another protocol offers cheaper borrowing rates, transferring some positions there might be more cost-effective. But don’t forget, each cross-protocol transfer incurs gas fees, so you need to factor these costs in to ensure your net profit remains positive.
**Market Conditions Determine Your Strategy**
During high volatility, raise your collateralization ratio and prioritize safety. When the market stabilizes, you can loosen up a bit to improve capital efficiency. Also, note that market liquidity may decrease before and after holidays, so adjusting your positions in advance is a wise move.
**Handling Yields Has Its Nuances**
The simplest approach is to reinvest all your earnings to let the snowball grow. But if you want to reduce risk, you can reinvest only a portion of the profits, while withdrawing or converting the rest into other assets. There are more sophisticated methods—such as setting different reinvestment ratios based on your account size in stages—to better balance yield and stability.
If you want to simplify the operation process, DeFi asset management platforms like Zapper and Zerion can provide you with one-stop services for quick and convenient management.