Huma x Kamino = Feathers scoring machine
The "Kamino button" that I saw for the first time before HUMA's initial airdrop has finally lit up, meaning I can take off in place to earn more feathers using a circular borrowing method.
👉 Strategy logic:
1️⃣ Deposit PST in Kamino → Earn 10% APY + 1× Feathers
2️⃣ Collateralize PST to borrow USDC (5.16% annualized)
3️⃣ Deposit the borrowed USDC back → Earn 4.1% APY + 3× Feathers
4️⃣ Circular operation, using the same principal to score multiple points
I'll try it out in my real account tomorrow 👀
@humafinance @KaminoFinance
This is actually a math problem.
Loan interest > deposit interest.
If the additional feathers points generated by circular borrowing correspond to returns > the interest rate difference between loans and deposits, then go ahead and leverage.
As for the risk, it is definitely the liquidation risk caused by the insufficient collateral ratio of the pledged assets due to price fluctuations, but in this strategy, there is no need to worry about it. Because although you are borrowing and depositing two different currencies, both PST and USDC are stablecoins, so as long as PST does not decouple, there will be no risk.
Explanation complete, uncle is going to sleep ❤️
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