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What If You can Loop Leverage on LSDfi and Get More Yield?

What If You can Loop Leverage on LSDfi and Get More Yield?

Scrolling through new protocols, and we found something early and 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 you can do various strategies on it!

so... what are there strategies?

Strategies you 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

  1. Deposit ETH/stETH LP to mint senUSD
  2. Buy more ETH & stETH to LP
  3. 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

  1. Deposit ETH/stETH LP to mint senUSD
  2. 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

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