Thread by @Route2FI

A thread about 9 stablecoin platforms that could give you some extra passive income:

1) Anchor Protocol
2) Abracadabra Degenbox
3) Yearn Finance
4) Hundred Finance
5) Platypus
6) Revenant/Creditum
7) Synapse Protocol
8) Orion Money
9) Spectrum bPSI

/THREAD

In this thread, I will list up the different opportunities and try to list up some pros and cons for all of them.

1) Anchor Protocol:

Pros:

-Very easy to use (for people that thinks DeFi is advanced, this is probably the least degen option on the list)

1/

-You can deposit $UST & your rewards are being paid out in $UST

-19,5% stable rate (rate has been between 19-20% for 1 year

-You don't need another token to get 19,5% APY

-Can be integrated with several DeFi protocols to increase yield from 19,5% to 40%+, eg.

cont.

2/

(Mirror Protocol, Mars Protocol, Kinetic Money, Prism Protocol ++)

-TVL: $6b (biggest decentralized savings account)

Cons:

-Anchor's balance sheet is negative at the moment. The yield reserve is about to run dry. A more sustainable APY is probably around 15% APY

cont.

/3

instead of 19,5%. I hope Anchor will solve this before they have to lower the APY.

-If they have to lower the APY, will this give repercussions to the peg of $UST and a bank run event?

I don't think will happen, but it's good to have in the back of your head.

cont.

/4

I've always loved Anchor Protocol, but I must admit I'm a little bit worried at the moment.

You can read a full thread I did about Anchor from September last year if you want to know more about how it works and the risks:

https://twitter.com/Route2FI/status/1442835869879181312?s=20

/5

2) Abracadabra Degenbox

A way to use leverage on the stablecoin $UST by borrowing a yield-bearing stablecoin called $MIM.

The Degenbox is sending the money to Anchor Protocol to generate this yield.

Pros:

-You can get APY from 45-140% instead of 19,5% in Anchor Protocol.

/6

-Soon available on the $FTM network (for now only on $ETH)

-The protocol is initiated by @danielesesta and his team (fully doxxed, easier to trust the product).

-Great supplement to your stablecoin portfolio if you like higher risk/reward

/7

Cons:

-High risk. You can get liquidated if the stablecoin $UST de-pegs temporarily.

-You are borrowing $MIM. What if $MIM is worth more than $1 when you repay your loan?

-Dependent on Anchor Protocol. If Anchor Protocol lowers their rate, Degenbox has to do the same.

/8

-Not as liquid as Anchor (rewards once per week)

-High gas fees + shuttle bridge fee ($ETH network)

I've made a thread about how Abracadabra Degenbox works. You can check out the thread here:

https://twitter.com/Route2FI/status/1458072000602202114?s=20

/9

3) Yearn Finance

Pros:

-Yearn Finance has a longer track record than Anchor Protocol

-Can use it on both $ETH and $FTM network

-On $ETH you can get stablecoin yields from 3-20%

-On $FTM you can get stablecoin yields from 16-25%

-Have strategies for all stablecoins

/10

-Simple to use. Just go to: yearn.finance/#/vaults , connect your wallet to $ETH / $FTM, and find the token you like.

-Rewards are being paid out in the same token that you deposit

-A great supplement to Anchor IMO

Cons

-Variable APY

cont.

/11

-Using different kind of strategies to get higher yield. Eg. if you want to get 25% APY on $DAI on the Fantom network this is the strategy that Yearn uses:

"Supplies and borrows DAI on Scream simultaneously to earn SCREAM.

cont.

12/

Earned tokens are harvested, sold for more DAI which is deposited back into the strategy."

If the market goes down and the token $SCREAM isn't performing well, expect the APY to go down too.

-Lower TVL than Anchor (less liquid). But still great compared to most platforms

/13

4) Hundred Finance

Pros:

-Multichain: You can use it on $ETH, Arbitrum, $ONE, Moonriver and $FTM

-10-58% APR on the different stablecoins (they have all the major ones)

-You can use leverage (use your stablecoin as a collateral)

-Nice UX: hundred.finance

/14

Cons:

-Need $HND tokens to get a higher APR

-Rewards in $HND (what if it dumps? My strategy is to sell daily into native stables)

-TVL: $250M total (for all chains). No liqudity on the $ETH network

-New platform (don't feel safe putting my life savings there)

/15

5) Platypus

Pros:

-7% - 10% APR on $USDC, $USDT, $DAI & $MIM

-Rewards paid out in $PTP

-You can get an even higher APR if you stake $PTP, up to 110% APR

-TVL: $746M

-Easy to use: app.platypus.finance/pool

/16

Con's

-If you want to do it safer, sell $PTP rewards to $MIM immediately

-The drawback: $PTP is volatile. If you sell off, you get a lower APY

-Only on the Avalanche network

/17

6) Revenant/Creditum

Pros:

-High APY

-2 nice strategies:

1) Buy $cUSD here: ftm.curve.fi/factory/54

2) Stake it here: revenant.finance/creditum/farm to 78% APR

3) Rewards in $CREDIT

4) Sell $CREDIT for $cUSD, $FTM or $USDC

cont.

/18

5) Or stake your $CREDIT for 224% APY and get $XCREDIT

An alternative way to get stablecoin yield if you don't want $CREDIT:

1) Go to ftm.curve.fi/factory/54 and convert $USDC or $DAI to $cUSD LP

2) Go to reaper.farm and find "2POOL-cUSD Creditum Crypt".

cont

/19

3) Deposit LP and get 58% APY

4) Rewards in $cUSD (autocompound)

Cons:

-Low TCL: $58M

-$cUSD is a new stablecoin. Not trusted yet.

-Will $CREDIT be a pump/dump-token like $PTP?

/20

7) Synapse Protocol

Pros:

-Multichain: You can use it on $ETH, Optimism, $MATIC, BSC, Fantom, Boba, Arbitrum, $ONE, Aurora, and Avalanche

-11-20% APY

-Easy to use: Deposit stablecoin of your choice. Recieve nUSD (backed by $DAI & $USDC) which you stake

-$500M TVL

/21

Cons

-Rewards paid out in $SYN. Can always be swap'ed to the token of your choice. With that said I believe that $SYN has a promising future

-Lower APY than the competitors

/22

8) Orion Money

Pros:

-On Orion you can deposit: $USDT, $USDC, $DAI, $BUSD and $UST and recieve from 13.5% - 20% APY.

-An alternative to Anchor Protocol if you want to use other stablecoins than $UST (eg. ERC-20-tokens)

cont.

/23

-If you want to get paid in your native token and hold no $ORION the APY is always 13,5%

Cons:

-Uses Anchor Protocol as the engine (not necessarily a drawback, but why not use Anchor?)

-The APY will be higher if you choose to hold and get paid in the $ORION token.

/24

cont.

9) Spectrum Protocol bPSI

Pros:

-High APY (28% atm). Used to be higher. The rate can never go lower than the Anchor Protocol rate of 19,5%

-bPSI can be traded for $UST 1:1 after the vesting period of 24 months (that's a long time in crypto though...)

/25

-Arbitrage opportunities: If you deposit $100 UST you will get $104 bPSI atm (in 24 months you can trade it 1:1. With big numbers that's a lovely 4% extra).

Cons:

-Arbitrage: If you want to withdraw before the 24 months you can get in an arbitrage...

cont.

/26

squeeze (you get fewer tokens back than what you put in). Let's say you deposited $100 and want to withdraw 5 minutes later. You could only withdraw $96. Arbitrage works both ways.

-With native $UST you can run more strategies...

cont.

/27

Eg. Kinetic Money will launch soon, probably not worth locking up bPSI for a long time now?

Still one of my favorite strategies and I've made a full thread about it:

https://twitter.com/Route2FI/status/1478054213531934724?s=20

/28

My personal ranking for the 9 stablecoin opportunities would be like this:

1) Anchor
2) Abracadabra Degenbox
3) Yearn Finance
4) Spectrum bPSI
5) Hundred Finance
6) Synapse Protocol
7) Orion
8) Platypus
9) Revenant/Creditum

/29

In 2022 there's really too many alternatives to choose from if you want stablecoin yield, I could have listed a lot more, but these are my personal favorites at the moment

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getrevue.co/profile/route2…

/30

I would also love it if you could share your favorite places to get APY on stablecoins.

Maybe the platform you mention is an undervalued gem that more people need to be aware of?

/31

If you could help me spread the word by retweeting the first tweet I would be forever grateful 👇

https://twitter.com/Route2FI/status/1484561521204154375?s=20

Thank you!

/32