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Get 13% APY On Top?

Looking to maximize your yield with a low-risk strategy?

Here’s a straightforward way to earn an extra 13% APY using assets you probably already own. If you’re already earning in the Genesis Pool, you can modify the position and borrow against it for an extra yield.

1. Deposit Collateral in the Genesis Pool & Borrow STRK

Start by depositing any supported collateral in the Genesis Pool (ETH, wBTC, USDC, or USDT).

• Depositing ETH earns you 5.2% APY.
• Stablecoins like USDC and USDT can earn you over 10% APY.

For example, let’s say you deposit 1 ETH into the Genesis Pool and borrow 2,500 STRK against it. Borrowing this amount costs you approximately $0.15 per month, while the deposited ETH generates $16 in monthly earnings.

Deposit collateral into Genesis Pool and borrow STRK.
Deposit collateral into Genesis Pool and borrow STRK.

2. Deposit Borrowed STRK in the Re7 Pool.

Next, deposit your borrowed STRK into the Re7 xSTRK or sSTRK Pool, which currently offers an attractive 13.3% APY. As the pool is still at max utilization, I expect this APY to increase further.

Alternative Option: Use the Stake & Earn feature to deposit as vxSTRK or vsSTRK (liquid staked STRK deposited to Vesu) and earn ~20% APY (Staking + DeFi Spring rewards). However, this comes with additional risks from liquid staking and adds extra steps.

Overview STRK markets
Overview STRK markets

3. Monitor your Position and the Rates

Keep a close watch on the Borrow APR and Supply APY. If borrowing costs exceed the Supply APY for STRK, the position will no longer be profitable.

Currently, with over 4M STRK available to borrow in the Genesis Pool, the Borrow APR should stay low for the some time.

Why Consider This Strategy?

This approach is ideal if you want to:

  • Minimize Risk: Avoid additional risks from liquid staking contracts or depegging issues.

  • Keep It Simple: Secure an 13.3% APY with minimal complexity.

Conclusion

While this strategy doesn’t offer staking rewards, it provides a safer yield opportunity by avoiding additional risks. With low borrowing costs and attractive APY rates, it’s a smart choice for those looking to maximize earnings with minimal hassle.

Get started here: https://vesu.xyz/borrow