the 60% APY days are over (for now)
but the 30% APY days are still here!
current yvUSD loop numbers (max loop):
- ~$300k USDC available @ 2.3% borrow --> ~30% APY
- (for the humbler farmers) ~$640k @ 3.5% borrow --> ~20%
farmer's paradise 🧑🏻🌾🌾
to those suffering from the rate spikes, your new home awaits
pick your fixed borrowing rate + get instant liquidity. also remove yourself from the mercy of msigfi
check out @flexmeow
@flexmeow preserves the carry, with even zero spread sometimes. Check this out:
yvUSD (unlocked) yield is 4.46% right now. A 6x loop at 4% borrow rate is 8.80% APY
What's another stable we should make a pool for that is even higher?
the fact that Flex markets can get to 100% utilization has some pretty interesting implications for looping
take yvUSD. assume
- yvUSD yield = 5%
- lenders want 4%
- borrower loops 10x
Flex (100% util)
lenders earn 4% <--> borrowers pay 4%
borrower earns 14%
TradDeFi (80% util)
lenders earn 4% <--> borrowers pay 5%
borrower earns 5%
same loop but almost 3x yield
beyond being more profitable, Flex enables looping strategies that aren’t viable in TradDeFi
so, asset issuers with yield-bearing collateral, we’re actively reaching out, but pls don’t wait! reach out and we’ll help you launch a market
So lets look at my @flexmeow results
I opened my trove about 7 days ago with
- 7787.48 yvUSD of @yearnfi
- I used this to borrow 6000 USDC
- i then stuck in yvUSD to get me 5927.31 yvUSD extra
a ~1.79x "loop"
I ran my trove for ~7 days at 0.4% borrowRate (crazy low)
The @newmichwill@CurveFinance looping UI wasn't live and i was playing it safe and lazy
While i slept, i got redeemed, likely some looper willing to pay more per block.
I demantled my zombie trove and recovered
1862.14 yvUSD that was not redeemed
leaving me at a balance of 7789.42 yvUSD,
-a profit of about ~2 yvUSD
(keep in mind that my USDC in that vault grew but i worry about that later)
Gas
0.0001ETH($0.20) Open Trove
0.0002ETH($0.50) Deposit borrowed USDC
0.0001ETH($0.09) Kill Zombie
3x Approves = ~$0.03
TBH.. im happy i came out in the green on this. But i would very much rather i was never redeemed. But thats what you get when you go degen
Got fully redeemed on @flexmeow test position and just closed my zombie trove for a marginal profit
Supplied 988.09 yvUSD ($1000.73)
Borrowed 500 USDC
Recovered 494.35 yvUSD ($501.44)
=> RESULTS:
- 493.74 yvUSD ($498.6774)
+ 500 USDC
= $ 1.3226 returns
- $0.68 of ETH gas spent
=== + $ 0.64266 net return, gas accounted for
Full redemption is like the worst case scenario here, and still it turned a marginal profit: 10/10, would recommend to fellow cat lovers, solid meowing experience
looping just got easier - no more finger workout!
the Flex looping UI is now live; 1-click looping via a flashloan
still plenty of liquidity available in the yvUSD/USDC market
earn up to ~55% APY, in 1 click
Looping at fixed rates is underrated.
@flexmeow is a money market where borrowing rates are locked at the time you open a position.
@yearnfi is currently the main liquidity curator, rates are low right now, and the main collateral is Yearn's main vault token, which is yielding good.
The redemption mechanic is borrowed from @LiquityProtocol . Lowest-rate positions get hit first. But in this case, a borrower can redeem you if they are willing to pay more interest.
I will be using this one-click loop and it would also be cool to have a curator that actively manages rate positioning to keep our positions protected.
I'm also sure more collateral types will come soon (I'd love to see Senior tranches ).