June 6 2021 BSC & Polygon Stablecoin Defi Rates

High Yield Stablecoin Pools

1940% APY - (Polygon) IRON-USDC Quickswap-LP Staked on Beefy

The APY on the IRON-USDC pair (which is also available for a very similar APY using the Sushiswap LP) has one of the highest APY’s that has been seen on stablecoin LP’s in quite some time. The LP does have some risk associated with it. IRON is a relatively new stablecoin that is 80% backed by USDC, with the stabilization of the IRON happening through its sistercoin TITAN. IRON exists on both Binance Smart Chain and Polygon, but the 4 digit APY’s only exist on Polygon for the moment. Also note that you can get a 1700% APY through autofarm if you prefer them.

Before investing in this LP consider the smart contract risk of a relatively new smart contract deployment, as well as the risk of IRON not being able to keep its peg. I plan to write up a summary of IRON and its risks in the near future.

113% APY - (BSC) IRON-BUSD PancakeSwap-LP Staked on Beefy

See above explanation of IRON. IRON exists on BSC as well as Polygon. On BSC it is backed 80% by BUSD and the price is stabilized using its sistercoin STEEL.

98% APY - (BSC) Dolly-BUSD-USDT Dopple-LP Staked on Beefy

Dopple is a newer stablecoin platform on Binance Smart Chain that launched in March 2021. At first glance their stablecoin pools appear to be utilizing the tried and proven stableswap code from Curve. Looks can be deceiving. Dopple appears to be using a version of stableswap that was ported over from Vyper (the language that Curve wrote the code in) to Solidity. The smart contract code appears to be from Saddle Finance.

Dopple launched their own stablecoin, Dolly, near the end of April 2021. The information about Dolly is lacking. It appears that you can trade in either USDT or USDC and mint Dolly with it. I assume that these coins remain in a vault until you go to redeem Dolly, but I am not sure if that is the case.

The Dolly stablecoin and the Dopple stableswap contract have yet to prove themselves. Consider this investment to come with a decent amount of uncertainty and risk.

60% APY - (BSC) UST-BUSD-USDT Dopple-LP Staked on Beefy

Another Dopple-LP paying out some pretty good rates. This 3 Pool LP does not use Dopple’s new stablecoin Dolly, and instead is paired with UST (Terra USD). UST is another relatively new algorithmic stablecoin that has been around since Q3 2020. UST seems like a pretty good stablecoin, but it is a bit immature and saw some issues staying pegged to the dollar for a period of about 10 days which saw it trade as low as $0.94 on some platforms. A serious issue with UST (from my understanding of the whitepaper) is that it can really only have about as big of a value as its sistercoin Luna. Luna is used to stabilize the price of UST, so when UST is below a dollar Luna is used to buy UST and when UST is trading above a dollar UST is used to buy Luna. If UST has a higher market capitalization than LUNA, then it is basically a scenario where UST is undercapitalized.

In general stablecoin pools that include UST will pay out a larger APY. This specific pool has more risk because it is a Dopple-LP rather than the standard Curve based stableswap LP.

58% APY - (BSC) BUSD-USDT-USDC-DAI Belt-LP Staked on Beefy

This pool is more risky than your typical stableswap based pool because it reinvests deposited funds into other pools on different platforms in order to achieve higher growth of LP value. This strategy was not properly coded, and was exploited. It makes sense to avoid this pool.

33% APY - (BSC) UST-BUSD-USDT-DAI-USDC AcryptoS-LP Staked on AcryptoS

This is a stableswap clone 5 pool featuring UST as the primary trading pair. If all coins in the pool had the exact same exchange rate, then UST would comprise 50% of the pool’s value. AcryptoS is an established platform on BSC, and there is nothing that is really done here that adds additional smart contract/platform risk to the equation. If you hold a balance of ACSI in their ACSI vault, then you will get a multiplier on the rate that you are paid out. Keep in mind that the ACSI vault has a 10% withdrawal fee.

The primary risk in this pool is the UST risk, but since this is a 5pool some of that risk is taken out by diversification of assets. On AcryptoS’ stableswap suite, you are paid out in ACSI token.

28% APY - (Polygon) DAI-USDC-USDT CURVE-LP Staked on autofarm

Curve is considered one of the safest/most audited defi platforms out there for stablecoins. Curve teamed up with the Polygon team to add additional rewards distributed in wrapped Matic tokens for this pool.

Risks associated with the pool would mostly come from the several layers of smart contracts. Curve’s stableswap contract is considered very solid, but we also add another layer on top of that since this pool is actually stablecoins that are wrapped by Aave (aUSDT, aUSDC, aDAI). Aave is a solid protocol that has proven itself overtime, but still has its own layer of risks. Besides using wrapped Aave tokens, this also takes on the smart contract risk of depositing into autofarm’s auto-compounding contract. I would consider autofarm’s contract to be pretty safe, but do keep in mind that not all that long ago they had an incident that led to some loss of customer funds on their BSC platform. If you prefer to remove the level of risk an auto-compounder adds to the equation, then you can still get about a 22% APY if you stake LP directly on Curve’s staking contract.

24% APY - (BSC) BUSD-USDT-DAI-USDC AcryptoS-LP Staked on AcryptoS

This is one of my favorite pools. The rate here is pretty low compared to what is historically ‘normal’ for the pool. I am used to seeing this in the 30%+ range. There is nothing too fancy going on here, just a clone of Curve’s stableswap code for a pool of stablecoins that are established and have deep liquidity across multiple blockchains.

Risks for this pool I consider to be low.