Lending Rate Update 🧮

Weekly lending rate updates on CeFi & DeFi platforms.

Aug 21, 2021

Hi everyone,

Click hereto access the interest rate tracker. It’s been updated so you can see the best rates offered among the various lending platforms. Also, please consider signing up for new platforms with the referral links posted by the moderator. He updates and maintains the excel spread sheet. I’m sure he’d greatly appreciate it.

Osmosis

I’ve said this before, but its worth repeating. Osmosis is one the best kept secrets in crypto. For the last few months Osmosis has provided consistent triple digit yields.

In my view this is the one the best ways to get exposure to the Cosmos ecosystem. You generate yield, pool fees, and benefit from asset appreciation. I personally have funds in the following pools.

ATOM/OSMO
AKT/OSMO
AKT/ATOM
ATOM/CRO
ATOM/XPRT
XPRT/OSMO
REGEN/OSMO

Initially I was selling half my OSMO for various alts to build an index portfolio and generate additional yield. However, within the last month I decided to simply accumulate OSMO tokens. Provided that OSMO has very liquid pools with all assets, anytime those assets rise in value so will OSMO. As OSMO rises in value, they yields for all pools with rise. As yields rise, more liquidity will be added to the pools. By accumulating OSMO I’m essentially betting on this reflexive loop.

Emeris (front end for Gravity Dex) launched this week, however they haven’t turned on their liquidity mining incentives. I don’t expect the yields to be very lucrative therefore we’re unlikely to see Osmosis’s liquidity flow to Emeris. I believe we’ll see some liquidity leave Osmosis for Emeris, but this will simply provide remaining LPs a yield boost. Given the pool depth on Osmosis, I suspect Emeris will end up routing most orders through Osmosis.

Both automated market makers are missing a stablecoin. With the Columbus-5 launch around the corner many suspect UST will become the dominate stablecoin on Cosmos. Once IBC is enabled on Terra Network, UST will become transferrable and transactable on Cosmos. The synergy between the two sovereign chains is likely to result in explosive growth.

Avalance Announces $180m DeFi Incentive Program

The team already has plans to bring Aave and Curve to Avalanche. In the initial phase they will allocate $20M AVAX for Aave users and $7M AVAX for Curve users, with additional allocations planned for Phase 2. Another project looking to collaborate with Avalanche is Stake DAO. Stake DAO will leverage Aave and Curve deployments on Avalanche to deliver innovative yield generating strategies. The team will also allocate resources to build a cross-chain bridge to help facilitate the transfer of assets onto Avalanche. Just on the news alone AVAX jumped almost 5X from $9. Assuming we see a Cambrian explosion of DeFi protocols on Avalanche, this is likely just the beginning.

Singular

This protocol aims to be the next gen multichain yield farm on Polygon, BSC, and Fantom. As mentioned in a earlier newsletter they launched on Polygon on August 11th. They’ll be launching on BSC in the next five days. Provided that you fulfill the conditions outlined by the team you can earn a FREE airdrop of 1000 SING tokens currently valued at approximately $7K. Given the low TVL on Singular users can still generate very robust yields. However, they do impose a 4% deposit fee. For this reason, I’m waiting eagerly for their BSC launch. I plan to provide liquidity as soon as the pools open. This way I can make my deposit fee back within hours and extract massive yields for a few weeks.

Growth Defi

They’re launching MOR (over collateralized stablecoin) in the next week or two. Their model is similar to rUSD. They’ll enable depositors to use yield generating LP tokens as collateral. For example, you’ll be able to earn 166% APR on your BANANA-BNB LP token and use that as collateral to secure a loan. You’ll enjoy the following benefits if you decide to borrow MOR and stake it in the BUSD-MOR pool on ApeSwap.

liquidity mining incentives from BANANA-BNB LP position
pool fees collected from LP position
liquidity mining incentives for providing liquidity to MOR-BUSD
pool fees from MOR-BUSD
auto-compounding of fees and liquidity mining incentives from both pools

The downside is that without proper management you could be liquidated. You need to keep a vigilant eye on your collateral and payback your loan if it falls rapidly in value. When I deployed a similar strategy on Ramp Defi I set price alerts on my phone so I would be able to react in time. I never got liquidated and I was able to produce fat yields for a few months. If you want to prepare for Growth, watch the video below to gain a better understanding of the mechanics.