Lending Rate Update 🧮

Weekly lending rate updates on CeFi & DeFi platforms.

Dec 18, 2021

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.

Cronos

This week I’ll be featuring yield farms on Cronos. This isn’t intended to be an endorsement and still requires degens to do their own due diligence. Given that most market participants are paralyzed with fear after this deep retracement, we degens can yield farm on Cronos with limited competition. This recent correction derailed the market’s momentum. It’ll take a few weeks for us to break out of accumulation and perhaps another month before the next parabolic move. This is a great time to put our assets to work in high yielding pools for the following reasons:

increased volatility results in more trading fees for liquidity providers (LPs)
assets become productive because they’re earning yield farming rewards
hedging strategies can be easily deployed without compromising yield
fewer participants means the yields are less likely to get diluted over night

For those who are aligned with this view, below you’ll find a few yield farming opportunities on Cronos.

VVS Finance

Their core product is an automated market maker and LPs are currently harvesting triple digit yields.

Despite the large total value locked, the yields have remained relatively high. This means the token is being heavily inflated and in the short-term is likely to depreciate in value. To soften the impact of their high emissions model, they’ve introduced Glitter Mines and Initial Gem Offering(IGO). Glitter Mines incentivize users to stake their VVS tokens with an enticing yield of 198% APR. The IGO service hasn’t launched but to get access users will have to make the following commitments:

Stake 1M VVS in VVS Glitter Mines for at least 7 days before the IGO sale

Get VVS-CRO LP tokens which will be needed to purchase the new token.

Assuming the first sale provides lucrative returns we’ll see significant uptick in the demand for VVS tokens. They’re essentially mirroring Pancakeswap model for initial dex offerings. Of course this doesn’t guarantee they’ll replicate the success of Pancakeswap, but at least we have a precedent. Another overlap VVS shares with Pancakeswap is an on and off-ramp. The Binance exchange offered this service through their exchange and bi-directional bridge. Crypto.com is essentially doing the same with their Crypto.com app and DeFi wallet applications.

Crypto.com @cryptocom

🤝Crypto.com Pay now supports @cronos_chain! ✅Pay with $CRO, $ETH & $USDC on Cronos. More tokens to come 🆕You can now choose the Cronos network when you pay with any DeFi wallets 🛒More ways to spend your crypto #PayEverywhere #CryptoComPay

The TVL for Cronos sits at about $1.5B. Despite burning half of their token supply there’s currently 25B CRO tokens in circulation. However, Crypto.com users must stake their CRO tokens for 6 months upon opening a new account. Additionally, due to Crono’s validation model a portion of CRO tokens must stay locked in nodes. Lastly, as mentioned earlier the demand for CRO tokens will grow as more protocols launch their liquidity bootstrapping incentives. These forces could be enough to take the CRO token new highs.

On the flipside there’s still a considerable amount of CRO entering the secondary market through staking emissions and yield distributions on the Crypto.com app. Also, users will realize significant profits as CRO appreciates and the yields on DeFi protocols will dry up further expanding the supply of CRO on the secondary markets.

Nonetheless, I’ve decided to farm on a few pools with an expectation of CRO having a stellar performance in Q1. Meanwhile I’m converting half my farmed rewards to CRO and VVS. Once VVS Finance launches IGOs, I should have enough capital to gamble on new token launches. For those who don’t share my bullish outlook for CRO, you can still leverage this opportunity to farm with stablecoins. VVS Finance offers 21% APR on USDC-USDT and you can auto-compound the yield by staking your LP token on AutoFarm. They charge a fee but it’ll save you the trouble of manually compounding your yield.

To learn how to get started watch the video I published a week ago.

CronaSwap

CronaSwap is an automated market maker (AMM) that aims to provide faster transactions and competitive fees. They haven’t secured a large TVL in their pools which mean increased slippage for users. Despite the low TLV they offer a larger diversity of farms including the following:

WBTC-WETH 37% APR
FTM-USDT 10% APR
BNB-BUSD 16% APR
BUSD-USDT 15% APR

To lure in users from other chains they’re offering airdrop to UNI, CAKE, and SUSHI holders. The current price of CRONA is 50 cents, however this isn’t your typical airdrop. These tokens are released linearly.

They’re actively trying to counter CRONA token inflation by adding deflationary mechanics. For example, a portion of the DEX fees are redirected to purchasing CRONA tokens off the secondary market and burning them. Aside from their AMM services they also plan to release a NFT platform in Q1. I’ve noticed a few other protocols on Cronos have similar plans. It makes me question their long term viability but in the interim we can enjoy the fat yields and the airdrop.

KryptoDEX

This DEX was launched by InterDeFi which is a DeFi multi-chain ecosystem. They began with PolyDEX on Polygon and CeloDex on Celo. They offer a suite of DeFi products including AMM Dex, Aggregator, Farms, Launchpad and NFT marketplace. Given they’re battle tested and have operational products on other chains I would rate the rug risk as very low.

Here are the following yields you can earn today on KryptoDEX

USDT-USDC 37% APR
DAI-USDC 42% APR
BUSD-USDC 35% APR
WBTC-USDC 149% APR
WETH-USDC 80% APR

I’d like to highlight that the rewards are locked for 1 year and vested for 1 year after that. Moreover, they also offer staking option for KRX holders ranging from 7-180 dayd lock ups with rewards increasing proportionally to the commitment period selected. This platform is ideal for investors who want to place a long term bet on KrptoDex’s success. On the other, transient farmers should look elsewhere for their yields.

Adamant Finance

This is another auto-compounding protocol with a few nuances. Adamant vaults charge a 30% performance fee but boost yields with their governance token CADDY. The caveat being CADDY has to be vested for 3 months. Provided CADDY appreciates over time, Adamant vaults maybe more profitable in comparison to other auto-compounding protocols like BiFi and AutoFarm.

I prefer managing my own farms manually throughout the week. However, when it comes time to take profits I may end up allocating a few stablecoins to auto-compounding protocols to diversify my counter party risk. Below I’ve highlighted a few yield opportunities you degens should consider taking a look at on Adamant.