Stablecoin Strategy for Whales with 80% APR at Katana
1. Go to
2. Deposit USDC in Vault powered by Yearn
3. You get wrapped token yvvbUSDC
4. Deposit it in Morpho
5. Borrow vbUSDT with 80% LTV
6. Deposit USDT in Katana app
7. You'll get 78% APR
Claim of rewards in Merkl at Polygon Network
Yield when calculating that $KAT FDV will be $1B.
This strategy is still not known to many, but they have already started to actively use it - that's why the loan rate is 12% APR.
Theoretically, you can complicate the strategy here by looping, raising the active leverage to x5.
In this case, the yield will be 208%.
But I would not do this for 2 reasons:
- depeg risk due of a large number of wrappers between yvvbUSDC/vbUSDT/yvvbUSDT/vbUSDC. This complicates control over the position
- the loan rate can increase significantly due to the small amount of available liquidity in the lending pool
I believe that the yield of almost 80% APR is attractive for any capital, there is no need to add risks here.

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