DeFi Alpha: Frax V3’s sFRAX Staking Vault
DeFi Alpha
DeFi Alpha is a weekly newsletter published for our premium subscribers contributed by Defiant Advisor and DeFi investor at 4RC, DeFi Dad, and our Degen in Chief yyctrader.
It aims to educate traders, investors, and newcomers about investment opportunities in decentralized finance, as well as provide primers and guides about its emerging platforms. It is meant to be highly actionable and shareable.
Any information covered in DeFi Alpha should not form the basis for making investment decisions nor be construed as a recommendation or advice to engage in investment transactions. Any mention of a token or protocol should not be considered a recommendation or endorsement.
Yield Alpha
Each week, we provide options to earn yield on stablecoins, ETH, WBTC, and other major tokens.
- ETH: Up to 14% APY looping stETH 4.3X on Metronome Smart Farming
- This yield is accrued in all stETH yield.
- Then, one can supply stETH or vaSTETH as collateral on Metronome Smart Farming on Ethereum and loop up to 4.3X (when Health Factor = 1.02).
- Caution: This is a leveraged ETH position that could get liquidated if borrowers do not maintain a health factor > 1.
- Stablecoins: Up to 28% APY looping FRAX 4.75X on Metronome Smart Farming
- This yield is accrued in all FRAX yield.
- Then, one can supply FRAX or vaFRAX as collateral on Metronome Smart Farming on Ethereum and loop up to 4.75X (when Health Factor = 1.02).
- Caution: This is a leveraged FRAX position that could get liquidated if borrowers do not maintain a health factor > 1.
- WBTC: Up to 11% net APR looping WBTC 3.33X on Radiant Capital on Arbitrum
- This yield is accrued in WBTC borrowing interest and mostly RDNT rewards.
- To participate, it requires a leveraged WBTC/WBTC position with 5% of the value of the looped position in the 80/20 RDNT/ETH Balancer LP.
- The RDNT LP must be staked for 12 months to achieve 13%.
- One must deposit WBTC into Radiant here and loop 3.33X here + zap into an LP staked for 1-12 months.
- Caution: This is a leveraged WBTC position that could get liquidated.
- ARB: Up to 8% net APR looping ARB 1.66X on Radiant Capital on Arbitrum
- This yield is accrued in ARB borrowing interest and mostly RDNT rewards.
- To participate, it requires a leveraged ARB/ARB position with 5% of the value of the looped position in the 80/20 RDNT/ETH Balancer LP.
- The RDNT LP must be staked for 12 months to achieve 8%.
- One must deposit ARB into Radiant here and loop 1.66X here + zap into an LP staked for 1-12 months.
- Caution: This is a leveraged ARB position that could get liquidated.
- OP: Up to 12% APY with the OP Sonne vault on Reaper Farm
- This yield is accrued in all OP yield.
- Then, one can deposit OP into the vault here.
- MATIC: 10% APY with the 6X MATICX/MATIC Recursive Staking strategy on Cian
- The yield is backed by validator rewards using MATICX as collateral, and looping borrowed MATIC against the MATICX on Aave V3 to achieve 6X leverage.
- To participate on Polygon, one can follow the prompts to deposit into the 6X MATICX/MATIC RECURSIVE Staking strategy here on Cian.
- ATOM: 18% APR staking ATOM with on Stride
- The yield earned is issued in ATOM.
- To participate, one must deposit/stake ATOM here in the Stride dApp.
- BNB: 9% APY with the Ellipsis Finance BNB/BNBx LP staked in a Beefy vault
- AVAX: 6.8% APY with ankrAVAX liquid staking
- The yield is backed by validator rewards using ankrAVAX by Ankr.
- To participate on Avalanche, one can follow the prompts to deposit AVAX here.
- SOL: 7% APY staking SOL with stSOL by Lido
- This is backed by SOL staking yield.
- To participate, one must deposit SOL here or buy it on a Solana DEX.
Please be aware we do not always report the highest yields because some high yields may be less sustainable due to high inflation token rewards or fewer LPs participating.