Stablecoin financial management in the bear market: where to get high returns?

DeFi has come a long way in the past two years. Now, even when the market is not doing well, many people will not withdraw from the crypto market entirely and choose to hold Stablecoin instead. But for some DeFi newcomers, getting Stablecoin to provide them with a solid regular income has been a headache. In the following, the editor of Rhythm has sorted out several popular stablecoin Farming strategies for you:

Money Lego: Yearn + Abracadabra + Curve

OG protocols such as Yearn, Curve, and Aave are the first projects that people think of when they mention DeFi, but in terms of Stablecoin revenue, they have become very “boring”, and now many Stablecoin Farming pool APY is around 4%, Basically no more than 10%. Although this is already very fragrant compared to ordinary bank rates, as DeFi, they have not fully realized their “degen” potential.

Abracadabra is a cross-chain lending platform that allows users to lend and borrow against their yield assets as collateral. Through Abracadabra, we can make full use of Yearn and Curve to achieve compound interest. This article provides three strategies for everyone. In order to unify, we take USDC as an example:

Strategy one

First, deposit USDC into the Yearn Vault and get the same amount of voucher Token yvUSDC. USDC deposited into Vault can get about 3% APY.

Next, go to Abracadabra.money, stake yvUSDC and lend the corresponding amount of MIM Stablecoin. Of course, we pay a fee of 0.05%, plus 0.8% interest per year. At the same time, you need to pay attention to the maximum pledge-to-borrow ratio in the red box, which will vary according to the currency.

Then go to Curve and exchange MIM for USDC again. In this way, while maintaining 90% liquidity, we can still get 2% APY, which is basically a waste of money.

Strategy two

If you feel that the above strategy is not profitable enough, you can keep the loaned MIM and deposit it into the MIM pool on Curve. On the basis of getting 0.25% APY, you can also get CRV Token, APR up to 9.35%, plus SPELL Token of APR 0.13%.

Strategy three

This strategy is called “9, 9” by many DeFi degens. After we exchange MIM back to USDC, we can deposit it into the Yearn Vault again to get more yvUSDC and borrow MIM. By repeating the loop, we can achieve higher compound interest APY.

The figure uses an example of USDT

Alchemix

Alchemix is ​​a very popular stable protocol on Ethereum before, and users’ arrears on the platform will automatically decrease with the protocol’s revenue on Yearn.

First, we need to deposit a certain amount of DAI as collateral, and in return we get around 7% APY.

Then we can lend Stablecoin alUSD on the Alchemix platform with a maximum pledge-to-borrow ratio of 50%. As indicated by the text in the red box, the APY obtained by the user’s deposit will be automatically used for repayment.

After lending alUSD, we can also exchange it back to DAI and repeat the above operation to obtain compound interest APY.

ProtoFi

Of course, the strategies mentioned above all need to be operated on Ethereum. For ordinary users or DeFi newcomers, the gas fee is too high, so it is more convenient to find a Stablecoin Farming strategy in a relatively cheap public chain ecosystem. to be more reasonable.

ProtoFi is the AMM and Farming protocol on Fantom, and it has been hot recently. The protocol adopts a dual currency system to allow users to become the owners of the protocol while reducing the selling pressure of the native Token.

ProtoFi has three different Farming pools: Nucleus, Fusion, Particle. First of all, we need to find a Stablecoin LP pool in Fusion, in this article we still choose the MIM-USDC pool. After providing liquidity to the pool, we will receive PROTO Token in return, and the current APR is about 40%.

After obtaining a certain amount of PROTO, we can go to Nucleus to provide liquidity to the PROTO-USDC pool. In return, ELCT Token is obtained, and the current APR is about 825%. Of course, since PROTO is not Stablecoin, users face the risk of impermanent loss.

However, what is more innovative about ProtoFi is that users can obtain part of the future income of the agreement through ELCT. Click Fission and deposit the ELCT you get to earn DAI or wFTM. The current APR is 200%.

It should be noted that ProtoFi uses a mechanism called Quantum Supply, and the release ratio of PROTO will be continuously adjusted according to the market value/TVL to control the selling pressure in the market.

Anchor

Anchor may be one of the most used strategies. Its Stablecoin APY has amazing stability and has remained at around 20% in the past year, so it is considered by many to be the most suitable income strategy for DeFi newcomers. Anchor mainly has the following three applicable methods:

Pledge UST directly

This method is the easiest and safest. Just deposit your UST directly into Anchor and earn 20% APY.

Liquid pledge LUNA

If you don’t have UST but have LUNA, you can stake your LUNA on Lido first and get an equal amount of bLUNA, earning about 9% APY.

Then deposit bLUNA into Anchor and lend UST. Anchor now encourages lending, so the UST you lend will also earn you extra APY.

Once the loaned UST is re-deposited, a higher compounded APY can be obtained.

Degen Box

If your UST is on the Ethereum mainnet, there is a more degenized Farming strategy. Abracadabra provides a lending strategy called “Degenbox”, which can automatically exchange the lent MIM for UST and deposit it in Anchor, and loop continuously.

After depositing UST as collateral, click “Change Leverage”, and you can adjust the lent leverage according to your needs. After that, the protocol will automatically deposit the lent assets into Anchor to earn APY. It can be seen that by increasing the leverage, the APY obtained by users can far exceed the original 20%.

How to capture the best quality APY?

The update iteration of DeFi is very fast, and new protocols appear almost every day, so the flow of funds is also very fast. Maybe a strategy with a high APY today will be less appealing a month later, so the ability to identify and track the current top-quality strategy is all the more important. This article provides you with the following two methods:

Beefy Finance

Beefy Finance is a multi-chain yield optimizer that allows its users to earn compound interest on their crypto assets and convert back to the original tokens staked by users. Through a series of investment strategies protected and executed by smart contracts, Beefy Finance is able to automatically maximize users’ earning opportunities in various LP pools, AMMs and other DeFi projects.

First choose the public chain you want to use.

Then look for strategies with higher APY Stablecoin revenue in Vault, as shown in the red box, some strategies may get the Boost of the protocol, so they can get higher APY.

Coindix

Coindix is ​​a website that detects DeFi returns in real time, and we can also find the most profitable Stablecoin income strategies on each chain.

After going to the Coindix website, you can choose different public chains in the top column, specific protocols in the left column, and income strategies for different assets in the middle.

For example, the current MIM and UST Curve pools on the Ethereum mainnet are very profitable.

Top Yearn is also using the Curve MIM-UST LP pool

In terms of overall revenue, the strategy with the highest revenue for Stablecoin is still from Fantom. However, it should be noted that the TVL on the right side of the red box, some strategies can provide a high APY due to the low TVL, but as more funds flow in, the TVL will naturally drop.

The above are some popular Stablecoin income strategies and methods to find the current optimal strategy, hoping to help everyone.