🤑@ResolvLabs's $RLP has seen its APR soar to 22% over the past 7 days, showing impressive performance📈
$RLP can be used as collateral on @MorphoLabs, giving us room to leverage. The yield from the circular lending strategy mentioned earlier is still very high.
In simple terms, the strategy is: Deposit $RLP -> Borrow $USDC -> Buy more $RLP -> Deposit again... continuously cycle to amplify the yield!
Here are the numbers👇
▪️Real yield of $RLP (7-day annualized): ~22%
▪️Current borrowing rate for $USDC on Morpho: ~7.5%
Assuming we use 5x leverage, the real yield alone could reach an annualized 80%!
When combined with the airdrop points yield, the overall strategy's APR approaches 100%.
Circular lending carries liquidation risks, so one must manage leverage and health carefully.
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