Stablecoin Smart Farming: How to Earn 73% APY in Real Yield with FRAX on Metronome

Stablecoin Smart Farming

Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned. 

Since 2020, Vesper Finance has been known for its easy-to-use DeFi vaults which compete with automated strategy protocols such as Yearn. Vesper was a notable protocol we covered during the last crypto bull market. Among competitors such as Beefy Finance, Pickle Finance, and Yearn, Vesper stood out as one of the more conservative protocols, engineered by OG Bitcoin core contributor Jeff Garzik. While Vesper has seen its own highs and lows during this crypto bear market, it remains a very active protocol continually launching new vault strategies, with now added support on the Ethereum L2 Optimism. Vesper Grow Pools allow anyone to passively earn by depositing single tokens which are then routed through DeFi's leading yield sources. 

In January 2023, a new DeFi multi-collateral and multi-synthetic protocol backed by some of the same builders behind Vesper, launched a sister protocol called Metronome. With Metronome, users can deposit collateral in the form of stablecoins such as FRAX, or more productive assets earning yield in Vesper Finance such as rETH, stETH, or cbETH (see yields below). These collaterals are then used to mint popular crypto synthetics including msUSD, msBTC, and msETH, which can be used in slippage-free trading, leverage positions, or yield farming.

  • vaFRAX - 15.7% APY
  • vaRETH - 8.91% APY
  • vaCBETH - 9.7% APY
  • vaSTETH - 5.58% APY
  • vaUSDC - 5.6% APY

Metronome allows depositors to supply these different collaterals and mint synthetic assets for a 1% annualized interest fee,

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