$0.99
24h
-0.04%
21 Jul, 03:53
USDe borrow asset for leveraged yield
Bullish-0.10%
AI Summary
Author recommends a DeFi leverage loop strategy using USDC and USDe to boost APY up to 16% while warning about borrow rate risks from pool utilization.
supplying USDC anf borrowing USDe will provide a good loop.
at 75% LTV, you can get up to 4x of initial deposit boosting APY to 16%
for anyone who doesn't know how loops works, ut means that you supply USDC, put it up as collateral to borrow USDe, swap the USDe to USDC and supply it again...
with 4.06% supply APY, you will be earning 8% after the second deposit but then paying 2. 56% which keeps your net at 5.5%
then you can repeat over and over
note: utilization on the USDe pool can lead to spike of borrow interest and anything above your supply APY pushes you to the negative side