Thread by @MapleLeafCap

0 – Alpha police would lynch me, but for stables farms, there’s $FLOAT’s ~1.5% whitelisted daily, the boosted 20-50% APY in CRV / Dodo, the stonk:UST pool of ~200% via $MIR, the ~100% SD Curve eurs in $SDT, one can also degen $Cover no-claim for 50-100%. Here’s a more degen one…

1 – A $TRU competitor had entered – I haven’t heard from Coinflex for a while but they just came out with notes.finance as its #DeFi attempt. ~10k% APY on unsecured lending to prop desks on a mere $25-30 mm $FLEX FDV to start (funded via $FLEX inflation).

2 – The 2 products they have are actually rather neat – one is a yield-generating USD (flexUSD) where the interest comes from basis trade on corn (perp funding fee / long spot short futures), which is paid out onchain via rebase every 8 hours.

3 - …and the other is the unsecured lending – they call it notes – which currently has a few prop desks borrowing at 8-10% annualized @ 0.5 – 1 mm clips (grapefruit, Folkvang , etc). These 2 type of products then go into CRV pools on the liquidity tab

4 - … of notes.finance where one can also contribute DAI / USDC / USDT into which effectively earns the underlying yield (albeit potentially contributing at a premium due to shortage of notes). The risk of course of Coinflex platform blow-up and/or counterparty default

5 – My understanding is that 25 mm $FLEX will be issued over 9 months (25% of FDV) whereby 80% goes to the notes (unsecured lending CRV) pools, 10% to flexUSD (basis yield) pool, and 10% to staked FLEX:USDC Uniswap LP. The FLEX:USDC pool2 today by rough math is ~500%+ APY.

6 – but the kicker is in the 1st bucket – with < 1mm TVL today in the notes pool today but 25 mm / 9 mo / 30 day * $0.3 $FLEX price = ~2.8 % daily yield on USDC (or ~10k+% annualized non-compounded), where $FLEX diluted market cap is barely ~$30 mm.

7 – Coinflex itself had execution issues as I covered them way back in Dec 2019 / early 20; the neat thing here is that (a) there’s a pool2 now ponzi-lifting the $FLEX price, (b) the higher $FLEX price would kick the notes pool yield into hyper-drive,

8 – (c) … which makes it an ideally really friendly environment for prop desks to borrow hard, and (d) here’s the killer, I believe the prop firms who borrow via CoinFlex would have to commit to certain amount of trading volume on the CoinFlex platform…

9 - …whereby the trading fees would automatically burn $FLEX as commission. If it all works in synchrony, the $FLEX being pumped will recursively drive further notes pool appetite and thereby friendly borrowing condition for the prop-firms.

10 – Corn’s pulling back, ETH gas price is lol, but say $FLEX goes to 1-2 USD on the back of this (~100-200 mm FDV), with ~50-100 mm TVL (god bless the notes lenders), that’s still a 50-100% type annualized yield, more for early stakers w/ mega $FLEX bag & initial yield.

11 – They certainly still got wood to chop on the interface & more transparency around the contracts / lender background. Also whether trading platform itself can compete well while BNB+ FTT are blazing ahead, but yield is yield, figure I’d flag since I followed them for a while

12 - Definitely be careful though. Liked the concept of both basis token + unsecured borrowing but not an endorsement. Team needs to work very hard to keep Coinflex going (that itself is tough as a small exchange) and now likely need this notes.finance effort to work.