Stop what you're doing anon, you can now loop PT-kHYPE/HYPE for a net yield of 58% APY!
But how you might ask? Is this sorcery?
No no, it's HyperEVM DeFi, thanks to @kinetiq_xyz + @pendle_fi + @felixprotocol!
With @felixprotocol supporting HYPE borrowing against PT-kHYPE collateral up to 86% LTV, one can loop up ~7x.
Because Felix uses a linear discount oracle to price kHYPE PT collateral, similar to how other best in class DeFi money markets price LSTs/LRTs against the native asset, borrowers can loop without worrying about PT-kHYPE depegging and blowing up their leverage.
To loop kHYPE/HYPE, one would:
+ Buy/swap for PT-kHYPE on Pendle
+ Deposit the PT-kHYPE on Felix
+ Borrow HYPE on Felix at 2.65%
+ Buy/swap for more PT-kHYPE
+ Deposit more PT-kHYPE
+ And repeat 5-6x more
So if PT-kHYPE earns 10.65% APY for the next 99 days
And HYPE borrow rates are at 2.65%
We can loop ~7x to achieve a net yield of 58.6% APY
Stay safu, my frens!
PT-kHYPE swap:
Felix Vanilla kHYPE/HYPE market (page 3):
kHYPE PTs are now live on Felix Vanilla for looping and stablecoin borrowing.
What are kHYPE PTs? kHYPE PTs allow kHYPE users to buy kHYPE at a discount relative to the market price which can then be thought of as a fixed yield in kHYPE terms. This is ideal for users who want to lock in a yield, in return for giving up the upside of speculative yield.
How are kHYPE PTs priced on Felix Vanilla? A linear discount oracle is used to price kHYPE PT collateral, where PT-kHYPE is priced at a discount to kHYPE and approaches 1:1 with kHYPE as it reaches maturity on the expiration date. This linear discount approach allows borrowers to loop more reliably without concerns of short-term depegs.
Use kHYPE PTs on Felix:
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