~41% APY strategy for #stablecoins on $MATIC (Polygon) network by providing Liquidity between $MAI - $DAI pair.
Here are the steps, pros and risks π
Here are the steps, pros and risks π
1/
There are many options for high APY stable yields here (see screenshot)
Steps for $DAI - $MAI LP:
1. Swap 50% of capital for $DAI on @QuickswapDEX
2. Swap other 50% for $MAI
3. Provide liquidity for $DAI - $MAI pair
4. Deposit LP tokens to @beefyfinance (Polygon)
π€
There are many options for high APY stable yields here (see screenshot)
Steps for $DAI - $MAI LP:
1. Swap 50% of capital for $DAI on @QuickswapDEX
2. Swap other 50% for $MAI
3. Provide liquidity for $DAI - $MAI pair
4. Deposit LP tokens to @beefyfinance (Polygon)
π€
2/
Pros:
- Stablecoin yield means no impermanent loss
- 44% is a very good yield for stablecoins
- No leverage strategy: There are leveraged strategies with higher APY, but leverage = more risk
Pros:
- Stablecoin yield means no impermanent loss
- 44% is a very good yield for stablecoins
- No leverage strategy: There are leveraged strategies with higher APY, but leverage = more risk
3/
π Risks:
- De-peg risk: $MAI in particular is a newer stablecoin, and more volatile than the more established ones. (Market Cap is only ~80M)
π Risks:
- De-peg risk: $MAI in particular is a newer stablecoin, and more volatile than the more established ones. (Market Cap is only ~80M)
https://twitter.com/shivsakhuja/status/1466384175921917953?s=20
4/
- Smart contract risk: A bug in $DAI, $MAI, QuickSwap or Beefy contracts could lead to loss of funds. π΄ββ οΈ
- Smart contract risk: A bug in $DAI, $MAI, QuickSwap or Beefy contracts could lead to loss of funds. π΄ββ οΈ
https://twitter.com/shivsakhuja/status/1466384177004093446?s=20
5/
- Autocompounders add another layer of risk. β οΈ
- Autocompounders add another layer of risk. β οΈ
https://twitter.com/shivsakhuja/status/1475421236477849601?s=20
6/
Also, pool sizes are pretty small, so these APYs won't last forever.
If you want to understand how Providing Liquidity on a DEX works, then see this:
Also, pool sizes are pretty small, so these APYs won't last forever.
If you want to understand how Providing Liquidity on a DEX works, then see this:
https://twitter.com/shivsakhuja/status/1473794498081689601?s=21
7/
Here's a leveraged LP strategy I wrote about last week with ~60% APR if you want even more returns (with more risk): πΈ
Here's a leveraged LP strategy I wrote about last week with ~60% APR if you want even more returns (with more risk): πΈ
https://twitter.com/shivsakhuja/status/1476887685692231680?s=20
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