Circular lending can be considered a relatively difficult stablecoin strategy to manage, and if you're not careful, you might end up losing to wear and tear.
Here are a few circular lending opportunities that I currently find to be relatively stable and offer good returns 💰
The APY is around 30% - 80% 🧵👇
2/🧵The first one is $USDF from @FalconStable.
USDF is a stablecoin created by the DWF team, backed by a market-neutral arbitrage strategy, with a base yield of about 12%.
Currently, PT-SUSDF on @pendle_fi can be used as collateral to borrow USDC on @eulerfinance.
The PT yield is 15%, and the USDC interest is 9.7%.
➡️ With full leverage, the APY goes directly to 59%.
3/🧵 Next up is $RLP from @ResolvLabs
The $RLP is backed by funding rate arbitrage, with an annualized rate reaching as high as 27% in the last 7 days!
📌 Aggressive strategy: Directly stake $RLP at @MorphoLabs and borrow $USDC at 13% interest.
➡️ With 5x leverage, the APY shoots up to 83%!
📌 Conservative strategy: Use PT-RLP from @pendle_fi (locking in 17.8% yield) to stake.
➡️ Even with leverage, the APY is still around 46%.
4/🧵The next one is $iUSD from @0xinfini.
The principle of Infini is quite simple; users can choose different staking periods to earn DeFi yields, somewhat like a bank's fixed deposit. Currently, the TVL is 60M, and it also operates its own points system.
We can utilize the PT-iUSD on @pendle_fi to lock in a 14% yield, and then borrow USDC at an 8.4% interest rate on @MorphoLabs.
➡️ After 5x leverage, the annual return is 36%.
5/🧵Finally, @ethena_labs's Usde
Recently, Ethena's price momentum has been strong, with the total supply of usde surpassing 6.2B. @pendle_fi PT-sUSDe (maturity date in September) yields 12%, and you can borrow DAI on @MorphoLabs with an interest rate of 6.7%.
➡️ 33% annualized return after 5x leverage.
6/🧵 Just a reminder, the strategies mentioned above all carry risks, such as interest rate fluctuations and stablecoin price decoupling, so make sure to do your research before participating.~
It took me longer than I expected to consolidate this article, and if you find the content useful, I hope everyone can give it a like and help share it out. 👍
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