Topic: Lending Protocol Arbitrage strategy on the Hoo Smart Chain (Read 97 times)
hope more people will join the discussion to find more opportunities.
In my opinion, this thread is more relevant in the service section .
Recently, there are not many very good yield farms on Heco and BSC, so I started to search other exchange public chains, such as kucoin, hoo, etc., and found that a new lending project called Roolend was launched on the HSC recently. As it's still in the very begining stage, the earnings is quite good, and we can achieve nearly 0 risk arbitrage by operating on RooLend and Lendoo.
Take USDC as an example
1. Deposit usdc in roolend, the total deposit yield is 21.76%%. Deposit can earn usdc interest and Roo;
2. After deposit, then borrow usdc, as it's one single token supply and borrow, the possibility of being liquidated is extremely low, and borrow at 80% of the deposit. The total borrowing interest is -4345.20% (which means we can make money by borrowing money). At the same time, it will also earn ROO mining reward.
3. Deposit the loaned usdc into the Lendoo lending platform. The current deposit yield rate is 6.24%, and the deposit interest is 2.77%, which is also higher than roolend's borrowing interest of 1.20%. The interest income covers the interest cost of borrowing, and there is a surplus, and we can also earn ldt token.
4. Then borrow usdc on the lendoo platform and deposit it on the roolend platform
After completing the above 4 steps (or only the first 3 steps conservatively), the simplest arbitrage strategy is completed. Let's take a look at the income of pure usdc (not counting roo and ldt): the core here is to see whether the interest cost of borrowing from roolend and the interest income of deposite in Lendoo are in a favorable position, here it is 2.77%-1.20% = 1.57%.
In addition, we can also earn Roo and LDT, and the overall return is positive, realizing arbitrage. In fact, you can also find other tokens with large spread between the deposit and borrowing interest rates on the two platforms, and the arbitrage yield will be higher.
Take USDC as an example
1. Deposit usdc in roolend, the total deposit yield is 21.76%%. Deposit can earn usdc interest and Roo;
2. After deposit, then borrow usdc, as it's one single token supply and borrow, the possibility of being liquidated is extremely low, and borrow at 80% of the deposit. The total borrowing interest is -4345.20% (which means we can make money by borrowing money). At the same time, it will also earn ROO mining reward.
3. Deposit the loaned usdc into the Lendoo lending platform. The current deposit yield rate is 6.24%, and the deposit interest is 2.77%, which is also higher than roolend's borrowing interest of 1.20%. The interest income covers the interest cost of borrowing, and there is a surplus, and we can also earn ldt token.
4. Then borrow usdc on the lendoo platform and deposit it on the roolend platform
After completing the above 4 steps (or only the first 3 steps conservatively), the simplest arbitrage strategy is completed. Let's take a look at the income of pure usdc (not counting roo and ldt): the core here is to see whether the interest cost of borrowing from roolend and the interest income of deposite in Lendoo are in a favorable position, here it is 2.77%-1.20% = 1.57%.
In addition, we can also earn Roo and LDT, and the overall return is positive, realizing arbitrage. In fact, you can also find other tokens with large spread between the deposit and borrowing interest rates on the two platforms, and the arbitrage yield will be higher.
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