Thread by @retro_wavey

How to capitalize on Arbitrum's NYAN farm craze without even using Arbitrum.

... A thread 🧵

You may know, Arbitrum's first meme farm cropped up a couple days ago (as you already know, the dev is based).

The only mainnet native token it allows for staking of is naked ETH...

The APR was 1,000% for much of it's life so far, attracting tons of ETH to bridge from mainnet to Arbitrum (about 420,000 at time of writing 🤯).

That's a hell of a lot of money. But where did it all come from?

As you might imagine, the people bridging ETH over for the NYAN farm are apes at heart.

So, rest assured this same ETH was not idle on mainnet. It is almost all being withdrawn from other farms on mainnet.

Consider now impact that ~420,000 ETH being withdrawn from mainnet farms will have. And remember too that to get ETH back from Arbitrum TAKES 7 DAYS!

So while the apes continue diluting the NYAN farm, let's see if a farming opportunity on mainnet may have just freed up for us 🕵️‍♂️

Let's start with the Curve stETH pool, which has been one of the most popular and reliable farms for naked ETH over the past 9+ months.

At the time NYAN farm launched a couple days ago, the pool had 525,423 ETH.

Now that same pool has 331,267.

A reduction in nearly 200k ETH!

All the while, the amount of stETH in that pool has actually stayed mostly stagnant, and has even increased.

That means two things:

1) Users who are aping ETH out of the pool are losing big on slippage

2) Users who are depositing ETH right now are winning big on slippage

So if I've got ETH looking for a yield right now, the opportunity is pretty juicy. Not only does slippage work in my favor to give an instant 1.23% bonus.

But the $640M ETH withdrawn from the pool massively enhances my share of LDO and CRV emissions.

I can go stake my LPs on Yearn, Curve, or Convex for over 8% APR which is amazing yield for ETH.

With gas prices looking nice right now, and so much ETH stuck on Arbitrum for 7+ days, this APR could be around for a bit.