Creditum — The Best Stablecoin Farm I’ve Ever Come Across
Over 175% APY with $USDC & $DAI.
Yes, 175% APY/101% APR… ON STABLES 🤯
A look into Revenant Finance (StakeSteak)’s new project and THE best stablecoin farm at time of writing.
Some background: The team behind this project once used to lead StakeSteak, a leading project on Fantom, before an unfortunate exploit. Afterward, the devs took some time off and came back with a banger of a project. Introducing Creditum.
Overview: Creditum (https://revenant.finance/creditum) on $FTM allows users to deposit crypto as collateral for minting cUSD, the project’s native stablecoin used for farming rewards. Below you can see the current collateral options, but I’ll mainly focus on the stablecoins.
With stablecoin collateral, users can mint up to 95% LTV in the native stablecoin cUSD. Then, they head over to Curve (CRV)(ftm.curve.fi) and deposit their cUSD into the Creditum factory pool. Users then deposit the curve receipt tokens into the cusd2pool under farms on Revenant.
How to earn 100%+ APR: I’ll use a hypothetical $1k investment of USDC or DAI.
1. Deposit the $1000 into yearn and receive either yvUSDC or yvDAI
2. Put yvUSDC/yvDAI as collateral on Creditum
3. Mint up to 95% ($950) of cUSD
4. Deposit cUSD into curve factory pool and stake in Creditum
The Math: Using the rates from the current images, $1k will earn ~$200 on Yearn. $950 of staked cusd2pool will earn ~$815 in $CREDIT, the native token.
Result: ~$1015 yield per $1k initial investment; 101% APR!
Note: By taking out a 95% loan, your position will be liquidated ,and you will have to pay a liquidation fee if USDC/DAI slips from peg only a tiny bit. However, by reducing your LTV to a 90% loan, that liquidation price falls to ~92 cents while still maintaining a 97% APR.
Some analysis: Currently, TVL is about $50m. A look at $CREDIT’s price chart is about as bullish a chart as I’ve ever seen. The project is very new, and please, DYOR before entering; NFA.
I really like the tokenomics of this project as I’m minting cUSD with my more “trusted” stables. Therefore, if cUSD falls below peg, when withdrawing from curve, I’ll get more cUSD tokens nominally, and since the loan I pay back is in cUSD, I’ll still make a profit.
Kudos to FTM Alerts for a great overview of the project; definitely check out his Youtube video on the project (linked below). Also thanks to @rektfoodfarmer (twitter) for first introducing me to the project.
Thank you for your time — Juanbug.