Leveraged Curve V2 and Convex
Curve V2 or Factory pools enable LPing of higher volatility assets, capable of producing higher APYs than bluechip/safer pools
The tricrypto2 pool comprises of USDT, WBTC and ETH. It’s often used as a sort of index for the two crypto majors when depositing USDT. With Gearbox, you can lever up ETH and deposit into the pool to access leverage.
The max leverage available for the pool will be 8.33X. The pool as of Aug'23 yields 5.13% organically at a TVL of $72M. With leverage, the max APY possible on the pool will be closer to 17.8% APY depending on the ETH borrow rate.
You can then put those Curve LP tokens in Convex. This will give you some [boosted] CRV rewards as well as CVX rewards, next to trading fees of the pool.
2-3. CVX/ETH and LDO/ETH Curve Pools
CVX/ETH and LDO/ETH are factory pools with just 2 assets each. Since you lever up ETH and then deposit into the pools, you are effectively gaining leveraged exposure to CVX/LDO itself.
For the CVX/ETH pool, the max leverage available will be 5.55X. The pool as of Aug'23 yields 8.3% APY at a $16M TVL but with leverage the max APY rises to 30.9%.
For the LDO/ETH pool, the max leverage available will be 5.55X. The pool as of Aug'23 yields 19.7% APY at a $6.4M TVL but with leverage the max APY rises to 95.2%.
Since CVX and LDO are more volatile assets, it’ll be important to exercise better risk management while farming than other non-volatile pools. The features that’ll help you manage this is a CA are detailed in our docs, here.
You can then put those Curve LP tokens in Convex. This will give you some [boosted] CRV rewards as well as CVX rewards, next to trading fees of the pool.
4. OHM-FraxBP pool
The pool is made of Olympus DAO’s token, $OHM and FRAXBP. FBP or Frax Base Pool is comporised of Frax and USDC. At launch, it’s max leverage will be 8.33X. As of Aug'23, the pool yields 5.14% organically. With leverage, users will be able to earn as much as 29.8% APY.
Just like CVX and LDO pools, exercise correct risk management when operating an OHM pool.
You can then put those Curve LP tokens in Convex. This will give you some [boosted] CRV rewards as well as CVX rewards, next to trading fees of the pool.
Last modified 26d ago