This article sorts out the stable currency farming strategy in the bear market: how to capture the best quality APY?

Original author: 0x137, Rhythm BlockBeats

Original author: 0x137, Rhythm BlockBeats

DeFi has come a long way in the past two years. Now, even when the market is bad, many people will not completely exit the crypto market, but choose to hold stable coins. But for some newcomers to DeFi, getting stablecoins to bring them substantial regular income has been a headache. In the following, the editor of Rhythm has sorted out some of the more popular stabilizers for you. Original author: 0x137, Rhythm BlockBeats

DeFi has come a long way in the past two years. Now, even when the market is bad, many people will not completely exit the crypto market, but choose to hold stable coins. But for some newcomers to DeFi, getting stablecoins to bring them substantial regular income has been a headache. In the following, the editor of Rhythm has sorted out several stable currency farming strategies that are currently more popular:

Money Lego: Yearn + Abracadabra + Curve

OG agreements such as Yearn, Curve, and Aave are the first projects that people think of when they mention DeFi, but in terms of stable currency income, they have become very "Boring". Now many stable currency farming pool APY is 4% Around, basically no more than 10%. Although this is very fragrant compared to ordinary bank interest rates, as DeFi, they have not yet fully realized their "degen" potential.

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

strategy one

First, deposit USDC into the Yearn Vault, and get the equivalent certificate Token yvUSDC. The USDC deposited into Vault can get about 3% APY.

Next, go to Abracadabra.money, pledge yvUSDC and lend the corresponding amount of MIM stablecoins. Of course, we need to pay 0.05% fee, and 0.8% interest per year. At the same time, you need to pay attention to the maximum pledge-to-loan 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 free prostitution.

Strategy two

If you feel that the above strategy is not profitable enough, you can keep the loaned MIM and deposit it in the MIM pool on Curve. In addition to obtaining 0.25% APY, you can also get CRV Token with an APR of up to 9.35%, plus a SPELL Token with an APR of 0.13%.

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 use it to borrow MIM. Through repeated Loop cycles, we can obtain higher compound interest APY.

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Alchemix

The USDT example is used in the figure

Alchemix is ​​a very popular stable agreement on Ethereum before. The arrears of users on this platform will be automatically reduced with the income of the agreement on Yearn.

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

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

ProtoFi

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

Of course, the strategies mentioned above all need to be operated on Ethereum. For ordinary users or newcomers to DeFi, the gas fee is too high, so look for a stable currency farming strategy in a relatively cheap public chain ecology More reasonable.

ProtoFi is the AMM and Farming protocol on Fantom, and it has been quite popular 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 original Token.

ProtoFi has three different Farming pools: Nucleus, Fusion, and Particle. First of all, we need to find a stable currency 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 for the PROTO-USDC pool. In return, ELCT Token is obtained, and the current APR is about 825%. Of course, since PROTO is not a stable currency, users face the risk of impermanent losses.

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 obtained ELCT to earn DAI or wFTM. The current APR is 200%.

Anchor

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 may be one of the strategies with the highest usage rate. Its stable currency APY has amazing stability and has remained at around 20% in the past year. Therefore, it is considered by many people to be the most suitable income strategy for newcomers to DeFi. Anchor mainly has the following three applicable methods:

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

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Liquidity Staking LUNA

If you do not have UST but have LUNA, you can first stake your LUNA on Lido and get the same 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 additional APY.

Degen Box

After re-depositing the loaned UST, you can get a higher compound interest APY.

If your UST is on the Ethereum mainnet, there is a more degen Farming strategy. Abracadabra provides a lending strategy called "Degenbox", which can automatically convert the loaned MIM into UST and deposit it in Anchor, and keep looping.

After depositing UST as collateral, click "Change Leverage" to adjust the lending leverage according to your needs. Afterwards, the agreement will automatically deposit the lent assets into Anchor to earn APY. It can be seen that by increasing the leverage, the APY obtained by the user can far exceed the original 20%.

How to capture the best quality APY?

Beefy Finance

The update iteration of DeFi is very fast, and new protocols appear almost every day, so the flow of funds is also very fast. A strategy that can still achieve high APY today may not be so attractive a month later, so the ability to identify and track the current best quality strategy is even more important. This article provides you with the following two methods:

Beefy Finance is a multi-chain yield optimizer that allows its users to earn compound interest from their encrypted assets and convert back to the original Token that the user pledged. Through a series of investment strategies protected and executed by smart contracts, Beefy Finance can automatically maximize users' income opportunities in various LP pools, AMMs and other DeFi projects.

First choose the public chain you want to use.

Coindix

Then look for stablecoin income strategies with higher APY in the Vault. As shown in the red box, some strategies may obtain the Boost of the protocol, so they can obtain higher APY.

Coindix is ​​a website that detects DeFi returns in real time, where we can also find the stable currency return strategies with the highest returns 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 different asset income strategies in the middle.

For example, the current MIM and UST Curve pools on the Ethereum mainnet have good returns.

The top Yearn also uses the Curve MIM-UST LP pool

In terms of overall income, the strategy with the highest income from stablecoins still comes 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 because the TVL is not high, but as more funds flow in, the TVL will naturally drop.