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DeFi Made Here

Jan 25 • 12 tweets • 7 min read

Real cost of borrowing stablecoins.
This is part 1 of the series, I will go through different chains in the next parts.
🧵

1/ Today we'll talk about minimizing the cost of borrowing stablecoins on #Polygon chain. #Fantom and #Terra are in the drafts already.

2/ The most popular loan in crypto is stablecoin loans. If you fill that market is trending upwards you can leverage position by collateralizing your assets and borrowing stablecoins against it. It is not the most actual topic at the moment, but you'll be prepared for later.

3/ Opposite, when someone borrows WETH or WBTC (or any other non-stable asset), they are betting that the price of those tokens will go down. This is also known as shorting.

@0xPolygon

4/ The most popular borrowing platforms on @0xPolygon are @AaveAave 2B$ TVL and @QiDaoProtocol only 68M$ TVL.

5/ Let's talk about interest rates on #Polygon. To maximize returns, you always want the cost of taking your loan to be as small as possible.

@AaveAave

6/ @AaveAave offers 1.2% APR on average for #USDC, #DAI, #USDT including borrowing incentives and 1-2% APR interest on your collateral. This is a low borrowing rate, especially if you are taking a loan for a short period of time only.

@QiDaoProtocol

7/ @QiDaoProtocol offers fixed 0.5% repayment fee to borrow #MAI against your crypto assets. So if you are considering to take a loan for more than 6 months it would be less expensive to loan from @QiDaoProtocol.

@QiDaoProtocol

8/ But i didn't take into account borrowing incentives on @QiDaoProtocol. As of today QiDao offers up to 60% APR for #CRV on your collateral.

https://twitter.com/QiDaoProtocol/status/1485762467074617344?s=20

9/ I specifically mention that this rate is actual today because every 2 weeks there is a voting for distribution of #Qi rewards for the vaults on different chains.

https://twitter.com/QiDaoProtocol/status/1485762467074617344?s=20

@QiDaoProtocol

10/ So if your desired token gets high allocation of #Qi rewards it would be much profitable to borrow (get paid to borrow) on @QiDaoProtocol than on @AaveAave. If there are no incentives and you want to take a short term loan I would recommend @AaveAave for that.

11/ Thank you for your attention, stay tuned more to come.

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Jan 26

https://twitter.com/DeFi_Made_Here/status/1485972078033399812?s=20

Real cost of borrowing stablecoins.
This is part 2 of the series, I will go through different chains in the next parts.
🧵

https://twitter.com/DeFi_Made_Here/status/1485972078033399812?s=20

1/ Today there will be a short thread about the real cost of borrowing stablecoins on #Terra and does it worth it?

@anchor_protocol

2/ Just a quick math on the very popular borrowing protocol @anchor_protocol on #Terra. Might be a little painful topic for a true #Lunatics

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https://twitter.com/DeFi_Made_Here/status/1484498354369294336?s=20

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https://twitter.com/DeFi_Made_Here/status/1484498354369294336?s=20

@Defrost_Finance

1/ There is a new vault on @Defrost_Finance which allows you to borrow against $sdav3CRV yield bearing asset from @StakeDAOHQ

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2/ First you need to deposit your stablecoins on @CurveFinance to av3CRV pool and get the receipt token

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https://twitter.com/milesdeutscher/status/1485972716440403970?s=20

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https://twitter.com/milesdeutscher/status/1485972716440403970?s=20

@iearnfinance

1/ Stake $wFTM at @iearnfinance for 70% APY, go to @QiDaoProtocol, deposit $yvwFTM to the vault and borrow $MAI for 0% interest (0.5% repayment fee applies)

2/ At the moment you are getting paid 1% in $Qi for borrowing #MAI stablecoin. Let's assume you have deposited 1000$ worth $wFTM and borrowing at safe CDR of 150%, so you can borrow 666 $MAI for the first loop.

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@kava_platform

Today we will speak about @kava_platform and how to get 70% APY on your stables.
🧵

@kava_platform

1/ @kava_platform is working on a kava chain which has around 500M$ of TVL and it is a part of @cosmos eco system. Recently @kava_platform joined #IBCGang which will allow crosschain transfers, but let's come back to the topic.

2/ Go to app.kava.io/swap/pools and add liquidity to the BUSD/USDX liquidity pool for 70% APY. APY depends on the price of rewards which are paid in $SWP token and total value locked. I have started farming with 140% APY last year.

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@QiDaoProtocol

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🧵

@iearnfinance

1/ The first option is to leverage your stables with @iearnfinance on #Fantom. It is the same mechanic as a famous #degenbox on #abracadabramoney.

@iearnfinance

2/ Once you deposited $DAI on @iearnfinance, you should have $yvDAI in the wallet. This is called a yield bearing token: it's a token that doesn't have any value, but represents your share of a pool where your assets are earning yields and rewards are automatically compounded.

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Jan 21

@Defrost_Finance

My first project/strategy overview will be @Defrost_Finance as it is still quite early and APR is quite high as of now.
🧵

@CurveFinance

1) You can add liquidity to @CurveFinance DefrostH2O3CRV-f ($H2O is a stable coin of the @Defrost_Finance protocol) pool and stake it for 100% APR, receiving $MELT as a reward.

2) You can boost APR up to 400% by stacking $MELT for $sMELT. Your melt stacking is receiving another 100% APR.

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