Liquidity re-release of collateral assets is becoming more and more popular!
Let's take a look at how Scallop makes the annualized interest rate of USDC deposits soar to as high as 85%+.
This article introduces two strategies: the basic version has a yield of up to 31%, and the advanced version has a yield of up to 85%+!
➤ Basic version strategy path:
1. Deposit $USDC in Scallop and obtain the deposit certificate sUSDC (Scallop's APR, where depositing USDC and WUSDC can get 8.78% and 9.47% APR respectively).
👉 Direct link: https://app.scallop.io/
2. Deposit $sUSDC into Bucket to get rewards of $SCA and $SUI (APR is 23.7%).
👉 Direct link: https://app.bucketprotocol.io/
Therefore, the total reward of the basic version is 8.78% + 23.7% = 31%; if WUSDC is deposited in Bucket, its APR is 18.2%, and the total return is 9.47% + 18.2% = 27.67%.
➤ Advanced strategy path:
1. Borrow $USDC: Calculate the APR of the reward based on the amount and duration of $SCA staked on the Scallop platform. Using Scallop's loan calculator, if 10,000 $SCA is deposited as a 90-day term, the APR of borrowing USDC can reach 45%+ (borrowing reward APR minus borrowing payment APR).
2. Execute the basic strategy.
The total reward source of the advanced version is: (67% - 13.3%) + 8.78% + 23.7% = 85%. The advanced strategy requires the investment of $SCA, which is a great benefit for users holding SCA. As for whether you need to buy SCA to execute this strategy, it depends on your personal choice.
➤ Strategy Analysis
sUSDC is one of Scallop's sCoin types and is the core of these strategies.
Official explanation: sCoin is an automatic compound lending token, and users can obtain liquidity benefits from its underlying value.
Simply put, sCoin is both a user's deposit certificate and a return. It can be used as an asset on other platforms to release the liquidity of assets that were originally locked by lending, similar to the logic of re-staking.
➤ Get USDC from Sui Chain
One is through an intermediary medium (for example, withdraw $SUI to the chain and then exchange it for USDC); the other is to use a cross-chain bridge.
Welcome to share your strategy in the comment area and discuss together!
