we are in the infinite money glitch DeFi era 👇
i. User deposits a stable (USDT/USDC) and mints a yield bearing stable (like SUSDE).
ii. Yield Bearing Stable protocol deposits original stable (USDC/USDT) into lending market.
iii. The yield bearing stable returns lending market supply rate + points. This gives it a higher implied APR than the cost to borrow the original deposited stable (USDT/USDT) on the lending market.
iiii. User borrows original stable against newly minted yield bearing stables and process is repeated.
And it all works… as long as the points have value.
The best part? Some sharp funds are building a 2nd layer to the points pyramid through the new and beautiful DeFi Coinception.
They run the infinite money glitch loops and wrap those deposits into a new stable returning the yield of the carry trade. Will save this one for a different explainer.
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