Lads, you can get >15% APR on $weETH with no leverage because of @ether_fi's Summer Pump campaign.
Many cycles ago, before LSTs existed, our yieldcestors primarily lent ETH and borrowed stables to farm in order to get an ETH yield.
It's time to bring this back 🧵👇
Let me explain.
Summer Pump gives a 3–6% additional APR to newly minted weETH.
That makes the net APR 6-9% just for minting weETH.
I walk through the math in this thread here:
You can leverage weETH for a remarkably high APR (@eulerfinance is an excellent locale for this).
BUT, to avoid leverage, try this:
1) Mint weETH
2) Deposit onto your favorite money market
3) Borrow stables at 50% LTV at ~5% APR
From there, you have a number of options 🧵👇
1) SUPER easy
Deposit borrowed stables into @ethena_labs.
Right now sUSDe is at 12% APY.
The Numbers:
➢ Base weETH APR: 3%
➢ Summer Pump APR: 6%
➢ Borrow Cost: 5%
➢ sUSDe Yield: 12%
The Math:
(3% + 6%) + 50%(12% - 5%)
Net APR: 12.5%
2) Basis but better
sUSDe has a great yield and phenomenal risk profile.
HOWEVER, $RLP from @ResolvLabs gets a leveraged exposure to basis returns by virtue of being a junior tranche.
Its 7-Day APR is 20% annualized.
The Math:
(3% + 6%) + 50%(20% - 5%)
Net APR: 16.5%
4) Avoid slippage, use USDC-in / USDC-out protocols like @infiniFi_
If you borrow USDC but swap to USDe or USDT, you'll eat slippage when entering/exiting positions.
INSTEAD, consider USDC-denominated yields.
Infinifi has the best one at 13-15% APY.
Net APR:
13% on weETH
The world is your oyster.
The idea is that you mint weETH, lend it (locking in your 6-9% collateral APR), then borrow stables at a lower rate than you farm them.
You avoid leveraging headaches while benefiting from this explosion of stablecoin yields.
That's it! Thanks for reading.
Note: EtherFi Ambassador
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