Thread by @systems_value

A 🧵 on how you can earn over 5x the native $GLP yield by utilizing some of the latest DeFi releases on Arbitrum. 😳

Note - there's risk involved, but you can tailor the strategy to your personal risk tolerance. Also NFA!

I'm just here to lay out the alpha. 𝛂

Let's get it. 👇

With the recent launch of @LodestarFinance, there's finally an #Arbitrum-native money market that supports $plvGLP.

If you've been following along, $plvGLP from @PlutusDAO_io is absolutely #PrimeCollateral due to it autocompounding the $ETH rewards.

Lodestar is effectively a Compound fork, meaning that you can loop assets to get amplified returns.

In this case, looping would mean depositing $plvGLP for collateral, borrowing USDC, buying $plvGLP with said USDC and depositing again.

Rinse and repeat X amount of times.

$plvGLP is one of the highest-rated forms of collateral on the platform with an LTV of 80%. This means you can borrow up to 80% of the value of your collateral.

This is what happens if you'd loop 5 times...

And this doesn't even take into account $LODE emissions. 🤯

On top of $plvGLP's native APR, users are also earning 31% in $LODE emissions.

This isn't readily available on the UI and requires the user to click in, so I expect many haven't yet realized this.

Math for looping gets crazy when you take this into account... 🔁

As crazy as it sounds, you're also getting PAID to borrow USDC. We've not factored this in to calculations, but it yet again SIGNIFICANTLY boosts the yield, especially when Lodestar is currently new and emissions are high.

28% on USDC, anyone???

If you'd like to play around with the calculator, you can find it below. You can change the assumptions too!

docs.google.com/spreadsheets/d…

Make a copy for yourself, share with your mates and enjoy the boosted yields on your $plvGLP. 😉

I expect the $LODE emissions to level out eventually as TVL balloons, but it's still added gravy on top of the real point - being able to leverage and loop $plvGLP. This is a unique aspect that $GLP does not have.

@PlutusDAO_io is hosting a Twitter thread competition for $plvGLP starting today, where the top 3 threads will each earn a cash prize of $500 USDC.

We want to spread the message of $plvGLP being prime collateral as far and wide as we can, and for that we need your help! 🙏🏻

Now obviously there's risk involved with liquidations - please take a moment to dive into the mechanism here: docs.lodestarfinance.io/documentation/….

In practice, $plvGLP is composed 50% of stables and the rest mostly of ETH and BTC, meaning it's a lot stabler than most forms of collateral. 🏦

We always intended $plvGLP to be an Arbi-native money lego, and we're super happy to see this come to life with @LodestarFinance.

Most importantly, with recent integrations $plvGLP unlocks an entirely new set of utility for $GLP enthusiasts, making it better than the original!

If you have any questions, make sure to hop on our @PlutusDAO_io x @LodestarFinance Twitter Spaces AMA today at 19.00 UTC - hosted on the official @PlutusDAO_io Twitter account! 💪

And finally, spreading the alpha to some DeFi kings...

@0xMrFreeze
@andrewsaunders
@AvgJoesCrypto
@DeFiSurfer808
@FroyoFren
@ethersole
@Mike_Crypto
@tztokchad
@chutoro_au
@tanoeth
@riley_gmi
@degensensei
@dluxgmi
@SmallCapScience
@0xJezza
@DAdvisoor
@SalomonCrypto
@conzimp