The @0xCoinshift csUSDC loop is currently printing 85% organic APR at max leverage.
This is without counting the points that Pendle would currently be valuing at an additional 10% at max leverage.
Let's look at some math 🧵👇
Collateral Yield: 8.27% APY
csUSDC is USDC lend into Coinshift's lending vault on Morpho.
The most accurate current csUSDC yield can be found here:
The APY is composed of TWO parts:
1) 7.27% organic lending lield
2) ~1% $MORPHO incentives
Borrow Cost: 5.01% APR
The borrowable asset is wUSDL, an interest bearing, Paxos issued wrapped TBILL-yield stablecoin.
It has a base intrinsic APR of 3.65% from the TBILL yield.
On top of that, there's a Morpho borrow rate of 1.36%.
Total: 5.01%
Points: +0.39% APR times leverage
Extrapolating from @pendle_fi's $SHIFT airdrop valuation at 30x points (+5.9% IY APR in points), we can divide that by 15, to get csUSDC's 2x point value at 0.39%.
SO, max leverage points APR:
25 × 0.39% = +9.75% APR
THE MATH:
► Collateral APR: 8.27% APY
► Borrow APR: 5.01% APY
► Max LTV: 96.5%
► Max Leverage: 28.57x
► Implied Points APY: 0.39% APY
(28.5 * (8.27% + 0.39%)) - (27.5 * 5.01%)
= 109% APR
Note: My 85% number was assuming only 25x leverage and no SHIFT incentives.
Final Note:
Ambassador! We like the tiger.
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