Strategies of the week 1-7 August
Supply xDai as collateral on Agave (averages 5-15% APY, $10,000 example deposit)
Borrow GNO against your collateral (averages 1.5-3% APY, $6,000 example borrow). Due to incentives you get paid to borrow.
Deposit GNO in a QiDao Vault and borrow MAI against it (450% APR, $3,300 MAI borrow).
For the QiDao vault there is currently no borrowing capacity available. You’ll need to watch the twitter page for notification of debt ceiling increases. Using tenderly you can also set up notifications whenever someone repays some of their debt. You can easily move the GNO between the QiDao vault and Agave to keep the position balanced. With the example numbers it would take a 40% move either up or down to liquidate the position. If you are actively monitoring it you can tighten those bounds to increase the yield. Just be aware of the 155% minimum CDR for QiDao rewards. APY here works out to 235% APY on the utilised capital. You can take the $3300 MAI and use those elsewhere. You can’t easily compound the QiDao rewards back into the strategy due to the ceiling so I’ve taken that as an APY instead of APR. Possible improvements include delta neutralising with perps. (0.075***10000+0.0225*6000+4.5*3300=15735. 15735/6700=235%)
Purchase jNZD on Jarvis Exchange and add to the jNZD-NZDS LP on Curve
Deposit your Curve LP token in the Beefy auto-compounding vault (averages 28% APY, $5000 example deposit)
Supply your Beefy LP token as collateral on the Market.xyz ‘Jarvis Forex Market’ Pool
Borrow whichever currency you think looks weak against the NZD (-0.835% APY, $3200 example borrow of jJPY)
Swap your borrowed currency for jNZD on the Jarvis Exchange and repeat to desired leverage (3x in my case)
All done correctly you should end up with 15K of jNZD-NZDS LP at 28% APY, and a debt of 10k jJPY (or your chosen currency) at -0.835% APY. This works out to an APY of around 82% on your original $5000, however you are subject to currency fluctuations of the chosen pair. As an Australian I am not too concerned holding NZD’s, however if your native currency is particularly strong (i.e. USD) that might be a drag on this strategy when moving back from NZD to USD based stablecoins. The number above should allow for a 15% move in the exchange rates before liquidation. (0.28*15000-0.00835*10000=4116. 4116/5000=82%)
Supply MAI to the ‘Stader Matic LP Locker’ on Market.xyz (averages 0.25% APY)
Borrow Matic (averages 2.8% APY)
Swap half the Matic into MaticX, then deposit in the Beefy Quickswap Matic-MaticX Pool (averages 20% APY)
Deposit your Beefy vault token into Market.xyz as collateral, and borrow more Matic against it.
Loop up to your desired leverage (equal MAI to Matic debt in my case)
With $10,000 in MAI collateral you can end up with $10,000 of Matic-MaticX LP at 20% APY, with the MaticX portion also earning 8.8% APY. Very low risk of a MaticX depeg due to the quick unstaking process (2-3 days). The above number allow for a 40% movement up in Matic price before liquidation. A less convoluted method would be to use one of the Beefy MaticX/StMatic vaults at around 25-30% APY (plus the 4.4% APY from the staked Matic portion) and then delta neutralise with perps. Penrose MaticX/Matic pool is also around 115% APY but very low TVL. (0.0025*10000+10000*0.2+5000*0.088-10000*0.028=2185. 2185/10000 = 21.85%)
Penrose MAI-FRAX Pool (22% APY)
QiDao Leveraged Stablecoin Vaults (18.6% - 32.5% APY)
MAI Curve Pool on Gnosis (16% APY)
Atlendis Wintermute Pool (375% APY)
Timeswap (very unique strats possible here. Big things possible once ETH collateral is enabled)