Thanks to Route 2 FI

A thread about 9 stablecoin platforms that could give you some extra passive income: 1) Anchor Protocol 2) Abracadabra Degenbox 3) Yearn Finance 4) Hundred Finance 5) Platypus 6) Revenant/Creditum 7) Synapse Protocol 8) Orion Money 9) Spectrum bPSI 1) Anchor Protocol: Pros: -Very easy to use (for people that thinks DeFi is advanced, this is probably the least degen option on the list) You can deposit $UST & your rewards are being paid out in $UST -19,5% stable rate (rate has been between 19-20% for 1 year -You don't need another token to get 19,5% APY -Can be integrated with several DeFi protocols to increase yield from 19,5% to 40%+, eg. Mirror Protocol, Mars Protocol, Kinetic Money, Prism Protocol ++) -TVL: $6b (biggest decentralized savings account) Cons: -Anchor's balance sheet is negative at the moment. The yield reserve is about to run dry. A more sustainable APY is probably around 15% APY instead of 19,5%. I hope Anchor will solve this before they have to lower the APY. -If they have to lower the APY, will this give repercussions to the peg of $UST and a bank run event? I don't think will happen, but it's good to have in the back of your head. 2) Abracadabra Degenbox A way to use leverage on the stablecoin $UST by borrowing a yield-bearing stablecoin called $MIM. The Degenbox is sending the money to Anchor Protocol to generate this yield. Pros: -You can get APY from 45-140% instead of 19,5% in Anchor Protocol -Soon available on the $FTM network (for now only on $ETH) -The protocol is initiated by @danielesesta and his team (fully doxxed, easier to trust the product). -Great supplement to your stablecoin portfolio if you like higher risk/reward Cons: -High risk. You can get liquidated if the stablecoin $UST de-pegs temporarily. -You are borrowing $MIM. What if $MIM is worth more than $1 when you repay your loan? -Dependent on Anchor Protocol. If Anchor Protocol lowers their rate, Degenbox has to do the same. 3) Yearn Finance Pros: -Yearn Finance has a longer track record than Anchor Protocol -Can use it on both $ETH and $FTM network -On $ETH you can get stablecoin yields from 3-20% -On $FTM you can get stablecoin yields from 16-25% -Have strategies for all stablecoins Simple to use. Just go to: yearn.finance/#/vaults , connect your wallet to $ETH / $FTM, and find the token you like. -Rewards are being paid out in the same token that you deposit -A great supplement to Anchor IMO Cons -Variable APY -Using different kind of strategies to get higher yield. Eg. if you want to get 25% APY on $DAI on the Fantom network this is the strategy that Yearn uses: "Supplies and borrows DAI on Scream simultaneously to earn SCREAM. Earned tokens are harvested, sold for more DAI which is deposited back into the strategy." If the market goes down and the token $SCREAM isn't performing well, expect the APY to go down too. -Lower TVL than Anchor (less liquid). But still great compared to most platforms 4) Hundred Finance Pros: -Multichain: You can use it on $ETH, Arbitrum, $ONE, Moonriver and $FTM -10-58% APR on the different stablecoins (they have all the major ones) -You can use leverage (use your stablecoin as a collateral) -Nice UX: hundred.finance Cons: -Need $HND tokens to get a higher APR -Rewards in $HND (what if it dumps? My strategy is to sell daily into native stables) -TVL: $250M total (for all chains). No liqudity on the $ETH network -New platform (don't feel safe putting my life savings there) 5) Platypus Pros: -7% - 10% APR on $USDC, $USDT, $DAI & $MIM -Rewards paid out in $PTP -You can get an even higher APR if you stake $PTP, up to 110% APR -TVL: $746M -Easy to use: app.platypus.finance/pool Con's -If you want to do it safer, sell $PTP rewards to $MIM immediately -The drawback: $PTP is volatile. If you sell off, you get a lower APY -Only on the Avalanche network 6) Revenant/Creditum Pros: -High APY -2 nice strategies: 1) Buy $cUSD here: ftm.curve.fi/factory/54 2) Stake it here: revenant.finance/creditum/farm to 78% APR 3) Rewards in $CREDIT 4) Sell $CREDIT for $cUSD, $FTM or $USDC 5) Or stake your $CREDIT for 224% APY and get $XCREDIT An alternative way to get stablecoin yield if you don't want $CREDIT: 1) Go to ftm.curve.fi/factory/54 and convert $USDC or $DAI to $cUSD LP 2) Go to reaper.farm and find "2POOL-cUSD Creditum Crypt". 3) Deposit LP and get 58% APY 4) Rewards in $cUSD (autocompound) Cons: -Low TCL: $58M -$cUSD is a new stablecoin. Not trusted yet. -Will $CREDIT be a pump/dump-token like $PTP? 7) Synapse Protocol Pros: -Multichain: You can use it on $ETH, Optimism, $MATIC, BSC, Fantom, Boba, Arbitrum, $ONE, Aurora, and Avalanche -11-20% APY -Easy to use: Deposit stablecoin of your choice. Recieve nUSD (backed by $DAI & $USDC) which you stake -$500M TVL Cons -Rewards paid out in $SYN. Can always be swap'ed to the token of your choice. With that said I believe that $SYN has a promising future -Lower APY than the competitors 8) Orion Money Pros: -On Orion you can deposit: $USDT, $USDC, $DAI, $BUSD and $UST and recieve from 13.5% - 20% APY. -An alternative to Anchor Protocol if you want to use other stablecoins than $UST (eg. ERC-20-tokens) -If you want to get paid in your native token and hold no $ORION the APY is always 13,5% Cons: -Uses Anchor Protocol as the engine (not necessarily a drawback, but why not use Anchor?) -The APY will be higher if you choose to hold and get paid in the $ORION token 9) Spectrum Protocol bPSI Pros: -High APY (28% atm). Used to be higher. The rate can never go lower than the Anchor Protocol rate of 19,5% -bPSI can be traded for $UST 1:1 after the vesting period of 24 months (that's a long time in crypto though...) Arbitrage opportunities: If you deposit $100 UST you will get $104 bPSI atm (in 24 months you can trade it 1:1. With big numbers that's a lovely 4% extra). Cons: -Arbitrage: If you want to withdraw before the 24 months you can get in an arbitrage squeeze (you get fewer tokens back than what you put in). Let's say you deposited $100 and want to withdraw 5 minutes later. You could only withdraw $96. Arbitrage works both ways. -With native $UST you can run more strategies. Eg. Kinetic Money will launch soon, probably not worth locking up bPSI for a long time now?