smart covered investment 🫡
if you are looking for onchain yield why not use @capmoney_ ? stcUSD 7days yield 16.39% APY ryt now you'll be asking where does the yield comes from? yield comes from smart covered investment: 1.) operators borrow and interest: big players like banks, trading firms or defi protos competing for hurdle rate (8-10%) to make their worthwhile 2.) they generate returns: if an operator makes 15% profit on the borrowed funds, they keep the extra (after the hurdle) but return the principal plus the base yield to the proto 3.) if an operator makes 15% profit on the borrowed funds, they keep the extra (after the hurdle) but return the principal plus the base yield to the proto 4.) safety net: restakers (using ethereum's security) back the operators like insurance. if an operator messes up, their collateral covers losses, so your principal is protected. no yield? no problem, the protocol covers it to keep holders whole (if there's so little borrow unused reserves deployed to Aave pools like USDT/USDC). this is all verifiable onchain, no trust needed. now that you know about where does the yield comes from. let's talk about how to position on their frontier program currently on epoch 3 (last epoch) where you can earn caps relative to your contribution to the protocol pro rata basis iykyk holding earns you caps: ‣ YT-cUSD/LP cUSD = 20x caps ‣ cUSD = 10x caps ‣ YT-stcUSD/LP stcUSD = 5x caps i'm already well positioned on capmoney (accumulated over 25M caps) but there's actually a good opportunity ryt now using @pendle_fi stcUSD pool underlying at 16.39% and IY at 14.04% which means this is a solid opportunity to buy when IY is low over underlying APY here's what i did: 1.) minted cUSD via cap(dot)app/swap 2.) buy YT stcUSD on Pendle via scale orders (size distribution ascending) which means my buy orders increments from 13.52% IY to 14% IY 3.) sign orders and confirm in your wallet as always nfa, but no cap this is really a good opportunity ryt now you obtain yield + 5x free cap points expecting by Q5 or earlier the frontier program ends cap on top, gcap!
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