Lending Rate Update 🧮

Weekly lending rate updates on CeFi & DeFi platforms.

Mar 27, 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.

Alpaca Finance

This week Alpaca launched leveraged farming with the following pools:

CAKE-BNB (2.5x)
BTCB-BNB (3x)
ETH-BNB (3x)
BNB-BUSD (3x)
USDT-BUSD (6x)

In addition to your rewards being auto-compounded, you’ll also earn ALPACA tokens as a bonus. The following graphic shows how the farming strategies work.

Since it’s still relatively early you can enjoy fat yields exceeding 800% APY. The yields might be a little misleading because the trading fees are based on a 7 day moving average. Moreover, the protocol is new and the trading yields can be very volatile. Since all these pools are on Pancakeswap, you can double check the trading fee yield before deploying your funds.

The safest option would be to use your BUSD to leverage farm the USDT-BUSD pair. This way you don’t have to constantly check your debt ratio to avoid a liquidation.

Alpha Homora

A few new pools were added to Alpha Homora on the Binance Smart Chain (BSC).

$BNB / $UNI (3.0x leverage)
$BNB / $YFI (3.0x leverage)

These pool will do great when the market is consolidating or is moving up. However, in a down turn you are putting your collateral at risk. So make sure you read through the docs and have a good understanding before you start. I’m experimenting with a little over $20k, and I’m currently making over $100/day. Since the yield auto-compounds, my daily return is likely to increase over time (assuming the rates don’t change much).

Apeswap

There’s many small and unknown DeFi protocols on BSC that offer juicy yields. There’s always an outstanding risk of getting “rugged”. However, if you pay attention to the collaborations and the progress it gives you a good sense of which projects genuinely want to build a successful protocol. In my judgement Apeswap isn’t at a high risk for rug (it can still happen). If you’re open to taking some risk, you can enjoy fat yields by providing liquidity.

For instance, Crypto.com was providing a 5% yield on BAT tokens. I was getting about 14 BAT a week with my balance. In just a few hours I was able to earn over 50 BAT on Apeswap. I had to first convert half my BAT token to BNB, but the yield is likely to compensate me for any impermanent loss.

I did this by converting my liquidity mining rewards, BANANA tokens, into BAT. Afterwards, I deposited my newly acquired BAT tokens into Cream.

This is just one example how I’m extracting maximum value from BSC. I’m uncertain about the long term viability, but for now I plan to take full advantage of the casino chain. If you want to get involved here’s a short tutorial on how to get started.

Blockfi

The market is in a perpetual state of change and as a result companies have to learn to adapt. Blockfi is responding to market dynamics by adjust their rates and tiers.

I understand this maybe concerning for some, but personally I’m not worried at all. If you’re unhappy with the new rates or concerned, just withdraw your funds. My dad and I are leaving our balances on Blockfi untouched. By the way, if you wanted an update on dad’s Blockfi account, watch the video below and drop a comment expressing your interest.