Ever wanted to park your stables on a chain where there are literally 11 different opportunities to earn over 50% APY on multiple different stablecoins all on one dApp?
What if most of these stables also had points programs to make things sillier?
Not quite free money below đ§”
@eulerfinance @Plasma @eulerfinance has been a quietly growing powerhouse in the Borrowing and Lending Market over the past 12 months, increasing TVL 50x year on year which is just utterly insane.
And, this time out it looks like they've found the partner chain they were always looking for in @Plasma
Euler offers 3 core functionalities, allowing Users to:
Earn - Deposit their assets into a basket which can be lent out against a curated collection of collateral assets)
Lend - Deposit their asset that can be borrowed against a single collateral asset
And of course, users can also Borrow, selecting curated markets within which they can increase their capital efficiency, taking out loans instead of liquidating an asset to purchase another.
Euler is good for many things, but they've found a particularly great PMF on Plasma
This PMF is of course, Stablecoins (woah, shock horror). Stablecoins in Crypto are consistently pushing boundaries because being simply a stable coin is no longer enough for these new assets.
The rise of @ethena_labs and USDe in particular has forced stables to bring more...
And more Yield to the table, with many integrating in-depth with @pendle_fi to allow further speculation on this front and some just building that Yield value directly into the model of the token itself.
Euler is excited by all of the above.
And it's not just Euler that's excited, with Millions and Millions of dollars of lending liquidity being deployed into the likes of @USDai_Official, @maplefinance's SyrupUSDT, @ResolveLabs' USR, @StreamDefi's xUSD and of course USDe from @ethena_labs
The main reason both protocols and users are loving this combination is Euler's Multiply Functionality.
Multiplying is a simple Looping Tool, allowing users to deposit their Stables, borrow against them and use the borrowed funds to buy more of their initial Stable
For example, the PT-Syrup USDT market starts at 11.97% APY for Supplying, with borrow cost at 5.45% APY.
We can work out the Final Looped APY by taking 9.07% x 11.97% and subtracting 8.07 borrowing Loops (8.07 x 5.45%) to spit out a very pretty 65.54% cumulative APY on your...
Initial Stables.
Obviously this is a rate that can fluctuate, as supply and demand can cause spikes in both supply and borrow rates, but on hyped stables like @USDai_Official these max looped rates are getting absolutely ridiculous.
Oh, and most of these stables have active...
Points programs too, so not only are you looping and earning cracked rates on your principal, you're also opening yourself up to earning even more points in your new favourite speculative farm
$1.37 Billion in TVL really seems like only the beginning here, thanks for reading!
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