What if you had $20M in USDC and were asked to farm on behalf of a whale on Polygon in only conservative farms with the best possible returns? Here is how you can do it.
Part A: $10M with exposure to multiple USD denominated stablecoins
Below is how one could allocate the first $10M USDC into 3 farms across Curve Finance and Balancer. These pools give exposure to other stablecoins like USDT, DAI, MAI and EURT (Euro-Peg). Since the farmer is only exposed to stablecoins, there is no impermanent loss. However, beware of the risks associated with code vulnerabilities, hacks.
- Split the $10M between the Curve and Balancer $5.4M and $4.6M respectively.
- In the Curve, further split the $5.4M between the MAI+3Pool3CRV-f and EURT with 49% and 51% respectively.
- Stake the MAI+3Pool3CRV-f in QiDao to earn Qi and sell the same for USDC which is then reinvested back into the same pool.
- In the EURT pool, sell the CRV rewards for more SDC which is then reinvested back into the same pool.
- Repeat steps 3 and 4 to maximize gains.
📎 Access the Strategy Simulation Spreadsheet.
Disclaimer: Curve, and Balancer are audited and highly tested, but there are always risks related to decentralized protocols. Dai and Mai are decentralized over collateralized stables, USDC and EURt have their reserves managed by institutions. This farming opportunity entails protocol risks, market risks, smart contract risks, and more.
Part B: Farming $10M million with exposure to synthetic forex (Jarvis Network)
Jarvis Network is a synthetic forex issuer which is over collateralized by USDC. Currencies like CAD (jCAD), SGD (jSGD) and EUR (jEUR) are very closely correlated to USD and have minimal price movement.
The below image shows the allocation of USDC to the various jFIAT pools on Curve.
Strategy to deploy the rest of the $10M
- Go to Jarvis Network and mint the following jFIAT in the ratio specified below by using USDC as collateral. The ratio has been worked upon to ensure that max yield is extracted and the pools are not diluted to reduce the yields:
- jEUR: 62.43%
- jSGD: 18.79%
- jCAD: 18.78%
- Further the jFIAT minted is to be distributed to the following pools in the following ratio:
jEUR -> 64% -> 4EUR Pool
All these pools earn JRT rewards if you stake the LPs on Jarvis Network. Sell the JRT for USDC and then repeat the steps.
📎 Access the Strategy Spreadsheet.
Disclaimer: Jarvis Network have been audited. However, this farming opportunity entails protocol risks, market risks, smart contract risks, and more. Treat this yield farm as experimental, and never deposit more money than you can afford to lose.