🤔What if u can Loop leverage on LSDfi n get more yield...?
scrolling thru new protocols n i found something early n maybe interesting
Lending has always been the best tool to leverage or short an asset.
@senecaUSD is a isolated lending market for LSDs to mint senUSD
imagine loop leveraging on LSDfi yield or simply enabling more strategies on top of ur LSD?
❓Can list any tokens to lend + current hot narrative?
LSDfi LP token as collateral?
crvUSD as collateral?
What yield farming magic that would enable?
📍How does it work
deposit "Asset", mint senUSD and u can do various strategies on it!
so... what are there strategies?
Strategies u can run
📍 Leverage Long
📍 Run farming strategies on idle capital that was supposed to be locked in ur LSD
**These are strategies is still in theory, need to wait for dapp to launch to double confirm!
📍Levearge Long
Deposit ETH/stETH LP to mint senUSD
Buy more ETH & stETH to LP
Repeat 1
Depening on the max LTV can be given to the "asset".
U can repeat 3 until ur desire leverage.
Things to note
Cost to mint senUSD, make sure the yield>interest rate
Make sure ur LTV is healthy so u won't get liquidated if ETH prices drops
Take into account for slipperage
📍Run farming strategies on idle asset
Deposit ETH/stETH LP to mint senUSD
Run stablecoin yield farm strategies such as senUSD/USDC or swap senUSD into USDC/USDT
This way u aren't having extra exposure in the delta assuming senUSD will mantain the peg
Each lending vault is call Apricus Chambers
They are independent of each other, seperating each pools LTV, interest rate & risk.
This allows more room to list
more exotic collaterals
more different LSDfi tokens
more strategies
👀 Opportunities
Its still very early, but im keeping my eyes on them for now.
Token valuation wise might be too early to check since we don't know when n how they are launching
but
These protocol typically have early farming incentives to boostrap their TVL 👀
$SEN Utility
Real yield revenue distribution (between $veSEN & $SEN)
Bribes
Governance Proposals
Seneca's revenue are
Borrow fees
Interest accrued by open positions
Protocol share of liquidation fees.
Valuation should be in relation of TVL / Fee
Seneca is still in early stage.
seeing a lot more guys talking about to compare to when i first drafted this a week ago.
my strategey is
check out
early farm incentives
potential "airdrop" on actually using the app
depending on their launch date revisit valuation n TGE strategy on market status
keep updated on what asset they are listing there
Thanks guys!
YO WHAT IF I TOLD U CAN FOLLOW WHAT I DO ON-CHAIN
YO WHAT IF I TOLD U CAN FOLLOW WHAT I DO ON-CHAIN