Lending Rate Update 🧮
Weekly lending rate updates on CeFi & DeFi platforms.
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Hi everyone,
Click here to 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.
Bancor Network
As I suspected the rates across the board soared this week. Initially I was receiving approximately 10% APY for my RSR deposit. This week it hit a peak of 50% with a weekly average of 25%. Of course the high rates are likely to be transient, however with the current market action I believe actual annualized rates will end up averaging 10-20% APY. You couple this with the return multiplier effect and you get yourself a massive interest yielding snowball effect.
Also, Bancor has posted the projected rates for their yield mining program. With the Bonus Return Multiplier (BRM) you can make close to 1000% APY on your BNT deposit. I converted a portion of my ETH into BNT for two reasons.
The rewards on the BNT side are significantly higher
I expect BNT to appreciate faster than ETH
Assuming everything goes according to plan I’ll earn more BNT and will be to sell it back into ETH once the incentive program has expired. I do plan on holding some BNT for the long term, but I definitely want my ETH back with some profits.
I also have some BNT on the side for future pools which get approved for the incentive program. Pools with lower liquidity will offer higher returns to individuals who participate early. Every two weeks, two new tokens will be chosen to be added to the mining program. The simulation based yields are expected to be high as 3000% APY.
Hegic
Here’s another liquidity mining incentive program that has been very profitable for me. Currently there are two ways to generate yield. To begin with, you can be a liquidity provider to the bi-directional AMM. The AMM has two pools, ETH and WBTC.
Since writers are taking profits from these pools, liquidity providers (LPs) do stand to lose some of their initial deposits. In fact, to date most LPs have lost some of their initial capital. However, the rhegic tokens you receive from the incentive program should cover the losses and make you profitable. They are redeemable at any time time and can be sold on the open market for 10 cents. Given we’re entering a bull market, hodling and selling at a higher price would provide a larger return. The yields are expected to be north of 200% APY
The second method involves purchasing a contract. For instance, I recently bought a call option on ETH and I received the following reward.
The fees to purchase this call option were very high so you’ll have to be prudent with your timing. Despite the high fees, savvy traders can still extract substantial profits.
Remember rhegic is basically an IOU on hegic tokens. Both trade on Uniswap at different prices.
Bitrue
XRP 4.1% to 5.3%
Bitrue is a very XRP centric exchange. If you’re a big hodler of XRP you should definitely consider giving this exchange test run. They have the most XRP pairs to my knowledge and their DeFi platform has run numerous yielding farming campaigns with XRP pools.
Ampleforth
At some point I expect AMPL to undergo another expansionary phase. We witnessed the first cycle this summer where many people made fortunes. However, individuals who bought near the top only felt pain as AMPL followed with a contractionary phase. During the DeFi winter the Ampleforth team has been collaborating with other projects to expand AMPL’s adoption. For example, interesting experimentation is taking place at Balancer as both teams attempt to resolve impermanent loss by leveraging dynamic pool shifting. For those participating in the Geyser incentive program, make sure to shift your LP tokens to the new Geyser next week.
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