@sutanxyz - Post
@sutanxyz - Post
sutanxyz
Lending protocols are key to provide liquidity and financial incentives on chain.
They can be great options to allocate funds and can provide a quite safe alternative to earn rewards.
These days I've been trying 3 of them, Youves, Tezfin, and Yupana Finance: 馃У
The main use for lending protocols are:
路 Long XTZ: Tezos numbers will go up related to $. You borrow $ and buy Tezos with it. 路 Short XTZ: Expect Tez to go down. You borrow Tezos and sell for $. 路 Rewards: You want to play safe and own $. In bull markets, borrowers pay a higher price for $ and you can get up to ~20% for lending.
You can obviously short any other coin the protocol has available and long anything you can buy, even NFTs (tho I wouldn't recommend it because of the lack of liquidity).
There are two main factors to consider -apart from the market-: Collateral and APY.
路 Collateral: The loan is collateralized. That means, you need to provide assets to cover its value. Your collateral should be a coin you expect to go up. If the value of your collateral goes down too much, you'd need to add more collateral or reduce your outstanding debt.
路 APY: The % you get paid yearly for lending, or the % you will have to pay to borrow each asset.
About each of the protocols:
路 Youves: https://app.youves.com: Much more than lending -they are synthetic assets you mint by creating a vault- and provides different ways to earn rewards.
The collateral ratio for Tez is 50%.
The lending fee ~7%.
The platform works great and you can participate in governance.
Their uUSD has a bunch of liquidity so you'll get better rates when swapping.
路 Tezfin - https://app.tezos.finance:
Very easy to use. Has the option to borrow stables at most affordable prices but their collateral requirements are stricter.
Doesn't pay much to lenders because of current low utilization.
路 Yupana Finance - https://app.yupana.finance:
Very easy to use with less strict collateral requirements.
If you want to lend stables is your best bet, since they are currently paying almost 40% for USDt
They can be great options to allocate funds and can provide a quite safe alternative to earn rewards.
These days I've been trying 3 of them, Youves, Tezfin, and Yupana Finance: 馃У
The main use for lending protocols are:
路 Long XTZ: Tezos numbers will go up related to $. You borrow $ and buy Tezos with it. 路 Short XTZ: Expect Tez to go down. You borrow Tezos and sell for $. 路 Rewards: You want to play safe and own $. In bull markets, borrowers pay a higher price for $ and you can get up to ~20% for lending.
You can obviously short any other coin the protocol has available and long anything you can buy, even NFTs (tho I wouldn't recommend it because of the lack of liquidity).
There are two main factors to consider -apart from the market-: Collateral and APY.
路 Collateral: The loan is collateralized. That means, you need to provide assets to cover its value. Your collateral should be a coin you expect to go up. If the value of your collateral goes down too much, you'd need to add more collateral or reduce your outstanding debt.
路 APY: The % you get paid yearly for lending, or the % you will have to pay to borrow each asset.
About each of the protocols:
路 Youves: https://app.youves.com: Much more than lending -they are synthetic assets you mint by creating a vault- and provides different ways to earn rewards.
The collateral ratio for Tez is 50%.
The lending fee ~7%.
The platform works great and you can participate in governance.
Their uUSD has a bunch of liquidity so you'll get better rates when swapping.
路 Tezfin - https://app.tezos.finance:
Very easy to use. Has the option to borrow stables at most affordable prices but their collateral requirements are stricter.
Doesn't pay much to lenders because of current low utilization.
路 Yupana Finance - https://app.yupana.finance:
Very easy to use with less strict collateral requirements.
If you want to lend stables is your best bet, since they are currently paying almost 40% for USDt
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