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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.
Newsletter Update
Moving forward I’m going to reduce the frequency of these Saturday rate updates. For now I’m thinking every 2 weeks. The focus will slightly shift from CeFi to GameFi and the metaverse. I’ll still cover DeFi protocols and cover the latest trends. However, you’ll seldomly see updates on our favorite platforms. This is more in line with my long term view of the industry and where I see the biggest opportunity for yield chasers.
Harmony
I’ve been ballz deep in DeFi Kingdoms (DFK) since November and I haven’t spent anytime reviewing Harmony’s core DeFi protocols. In today’s newsletter I’ll cover a few protocols worth looking into. The yields are no longer competitive with equivalent protocols residing on other chains but you can still leverage them to optimize returns. To transfer assets over to Harmony I would recommend using Terra Bridge, AnySwap, or Rango Exchange. I’ve linked a couple video tutorials below.
Tranquil Finance
This is a money market protocol like Aave. During launch the reward APY exceeded the cost to borrow. In other words, users were being paid to borrow against their collateral. This is no long the case. With the total value locked ballooning to $329M, the reward yield for both the supply and borrow side have been diluted.
Additionally, due unfaithful yield farmers the token price took a nose dive from $1 to 15 cents. However, the price recently spiked on the announcement of Defira. With the success of DFK everybody is pivoting to emulate them.
They also have a market for stONE, a liquid staking token. By navigating over to the stONE page on Tranquil, users can delegate their ONE tokens to receive stONE. The rewards will get compounded and stONE exchange rate will get updated on every compound. Additionally, by using stONE as collateral users can borrow other assets to increase their net yield. For example, users can borrow USDC against their stONE and provide liquidity to the auto-compounding vault on Farmersonly.
The net result, keep exposure to ONE and continue earning staking rewards. With a collateral weight of 65% borrow USDC (almost at no cost w/ reward APY) and earn 26%.
I haven’t done enough research to make a high conviction bet on Tranquil. Although I did end up getting exposure on the announcement of DeFira. You can stake Tranq in the locked pool (locked for 6 months) to be eligible for the Gen0 hero lottery but I elected to go with flexible staking pool for 33% APR. I believe Tranquil will continue to benefit from the success of DFK regardless of the game’s development progress. I’m buying TRANQ because I expect to see a large speculative premium in the coming months.
Hundred Finance
This protocol is essentially a multi-chain iteration of Curve Finance. However, unlike Curve Finance Hundred is a money market protocol. It’s currently deployed on Arbitrum, Fantom, Moonriver Harmony One. These types of protocols are incredibly appealing to stablecoin whales. Consequently, they often reach obscene TVLs. Hundred Finance just like Curve allows users to boost their yield by locking up their governance token.
This protocol has even attracted the likes of Andre Cronje who bought 400 ETH worth of HND tokens. I’m not in favor locking up tokens for years but it may make sense for wealth preservers who are interested in optimizing their stablecoin yield.
In my view they need to work on incentivizing borrowers and marketing their protocol. Otherwise the yield will solely be reliant on token emissions.
The utilization ratio is significantly higher on the Fantom chain than Harmony. Given the same token is used on all the supported chains, I can see the potential of their governance token - HND. The utilization ratio on Harmony is soo low that depositing stables without a boost doesn’t make any sense. Unless you plan to purchase HND tokens and lock them up, I would look elsewhere for stabelcoin yield.
FarmerOnly
This is an auto-compounding protocol and an alternative to Beefy Finance. They recently added the support of leveraged yield farming vaults sending USDC yield to above 20%. They’re expanding their services by adding FoxSwap but don’t have deep liquidity. Most their lucrative farms are paired with their governance token FOX but with their inflation rate I would stand clear. For now I’m only be interested in their leveraged stablecoin vault.
SushiSwap
This one is pretty straight forward. They yields are paid in both SUSHI and ONE tokens. Most the pools are supported on Beefy Finance if you want to auto-compound your yields. Honestly given the low TVL these yields are crap.
LootSwap
Here’s one that not many people know about. Assuming Cosmic Universe blows up these pools could be very lucrative to early investors. I bought my first bag of MAGIC tokens around 50 cents and used 1/3 to provide liquidity to the MAGIC-ONE pool. Most my tokens are locked but the unlocks recently started. My tentative plan is ride the pump ahead of the land sale and sell half my tokens into BSCBUSD to provide liquidity. I’ll use my LP position as a printing press to purchase in game assets and accumulate more MAGIC tokens. The total supply is 40M and the current marketcap based on circulating supply is only $20M. This leads me to believe there’s potential for more upside.
LootSwap is a DEX focused on GameFi. They’re rebranding to OneFi and will begin offering the following services in January:
treasury liquidity rebate market
layer 2 farming
nft marketplace
index funds
yield farms
dao
They announced plans to launch in early January but they failed to meet this self imposed deadline. The current iteration hasn’t delivered anything innovative but they got potential provided they deliver on their roadmap. For now I’m strictly using them to yield farm with my MAGIC tokens.
CheeseDAO
This is a decentralized gamified risk protocol. They combine Olympus’s philosophy on protocol owned liquidity with an NFT based game. I won’t dive into the game but you can check out this medium post to learn more.
They recently started allowing users to purchase bonds using locked jewel. In theory you could use this protocol to exchange locked jewel for unlocked jewel by following these steps:
purchase bonds with locked jewel
wait for bond maturity to redeem CHEEZ
sell cheez for jewel on the open market
The problem with this strategy is that CHEEZ has very poor liquidity. My strategy could work but not for large balances. I’m might test this is out with a small sum of locked jewel and update you guys in the discord.
Other Considerations
Hermes Defi - I’m not sure what they’re trying to do but their farms are offering juicy yields
Unite Finance - Tomb Finance fork I covered last week
For gods sake join the discord before I stop accepting more degenerates. People were talking about JEWEL at $1 in there. Countless other good calls were made. Ya’ll losing money by fading the C1S discord.