Strategy #2 Stabletrage

Stablecoins, why would anyone even buy these dumb things. I mean your upside is well 1$ and your downside is well 0. Stablecoins in itself is not a good speculative vehicle, but the utility of the stable coin is where the real value is at.

Before we begin the TLDR on this strategy is to arbitrage the borrowing and lending rates on different protocols.

To understand this strategy here are things you must know and have

• stablecoins (tokens that seek to be 1$)
• how to use Meta Mask
• a general understanding of how to use a Borrowing/Lending Protocol
• have FTM chain set up in your metamask wallet (can do here https://chainlist.org/)
• Have a Terra station wallet (get here https://station.terra.money/)

There are different arbitrage opportunities on different chains with newer chains and ones that have leverage having the best opportunities. The chains Im going to look at are FTM and Terra.

So here is a simplified strategy if you want to go more degen and fill that craving for yield then go to the end of this article.

1. Go to https://granary.finance/markets or https://geist.finance/markets on ftm and you can led out Btc, eth, or any token you have. you will need to borrow fusdt or usdc .if you already have a stable coin then skip this step.
2. if you have USDC then then your need to get the Mai stable coin. you can get that here https://beets.fi/#/trade or https://ftm.curve.fi/factory/61 . you can also get yearn Dai to deposit into mai finance but its not as capital efficient so I just go direct.
3. The best part about step 2 is that you automatically get some free mai on the swap

used to be more but peeps be finding out about this gem

4. with the mai that you get you come and take it here Tarot.to. The reason Tarot has a high yield is because it is a leverage platform and degens are willing to pay more money in exchange for a higher apr.

so to sum it up your paying about 8–15% on geist or grainary finance (not taking into account the amount you are getting paid for lending out your asset as collateral) and you are making 50+% on your mai stable coin…..ITS LITTERALLY FREEEEE MONEY

as you can see here

My favorite protocol to use is https://app.mai.finance/vaults/create. This one is my favorite because you can basically get a FREE loan….Yes you heard that right. The only thing you have to pay is a .5% repayment fee when you repay it

What I really like about Mai finance is that you can use Yield bearing assets and borrow against them (this allows the potential for self repaying loans). Look at yearn wrapped ether for example, The QIdao platform is paying you 40% to borrow against your yield bearing eth. you can get Yearn eth here https://yearn.finance/#/vaults or you can get it zapped in on qi dao

you can then now take your newly borrowed mai stable coins and lend them out for an additional yield. (remember you dont have to pay anything to borrow these coins, you are actually getting paid to borrow).

• yield on our yearn wrapped eth (currently .5%…..betta than nothin 😉 )
• yield for borrowing against your Eth (40% apr)
• yield on your mai stable coins you are now lending out (40–90% Apr)

yields on yearn

is 67% good enough for you

lets sum up where we are at so far Yield wise

Now the question is where in the world do I get the highest Apr on my Mai token. Well ask yourself who would be the one willing to pay the most…..The answer is leverage 😉 . So where better to check that the lending Giant Tarot.to

• vault hacks
• being liquidated
• smart contract risk
• if lending, make sure the arb is making you money not losing 😂 (as in if the borrow apr is higher than the apr you are losing money)

Lets talk about the elephant in the Room the Mai stable coin……can it hold peg? well the tldr is if it goes to 0 then well a bunch of people lending on mai finance will basically have all of their loans paid off and walk away a free man. If you want the deets then check here https://twitter.com/Rentahomefast/status/1492919345948856321

risks you do need to factor in

This strategy can go even further but I think this is enough for now I dont want to create paralysis of analysis . If you are looking for the best yield on the mai stable coin its kept private so the serious farmers can farm 😉 (cant dilute them yields). If you are in the digisquad discord then you have some idea where the higher yields are.

Originally published at https://rektventures.medium.com on April 21, 2022.