The @LiquityProtocol V2 tech stack is underrated.
@ebisu_finance just launched and allows you to borrow against $sUSDe AT A FIXED RATE.
I repeat: you can borrow against sUSDe AT A FIXED RATE.
TL;DR 31% APR on sUSDe w/ fixed borrow.
This is a game changer. Let's look 🧵👇
The way the Liquity V2 stack works is that you choose your borrow rate.
In doing so, you place yourself within the redemption queue according to how low your fixed rate is.
The lower the fixed rate, the higher up on the queue you are.
The redemption queue is also simple. When ebUSD (or BOLD for Liquity V2) depegs, people can redeem it for underlying collateral.
This is a great PSM (peg stability module).
Borrowers set their queue tolerance, and ebUSD users can rest assured they can always redeem if need be.
Some looping math...
At 4.9x leverage at 3.8% fixed borrow cost and an 10.31% APY on sUSDe...
4.9 * 10.31 - 3.9 * 3.8
= 35.7% net APR
And remember, that borrow cost is fixed.
BUT, if you wanted to be protected from redemptions, you could always go to the left of 4.7% borrow cost, having a huge redemption buffer before you.
In that case, you'd get 32% net APR and rest easy.
Note: I'm a Liquity enthusiast and ambassador, as well as a loop afficionado.
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