Stablecoin yield arbitrage for fun and profit

$TUSD and $USDC are available to borrow for 3% at Aave. To borrow, you need to provide collateral. You can provide collateral in; $SNX, $ETH, $LEND, $BAT, $KNC, $LINK, $MANA, $MKR, $REP, $WBTC, $ZRX. If you have any of these assets, and you are long them, why not put them to use?

Let’s say you have $10k MKR. You provide the $10k MKR as collateral. Next borrow $5k worth of $USDC or $TUSD (whichever is lower).

Now we need to change the $USDC or $TUSD into $DAI or $USDT. Head over to y.curve.fi

$5000 TUSD into USDT would cost you $2.35. Take the $5000 USDT and deposit it into iearn.finance

iearn.finance has an APY of 13% on USDT. On $5000 USDT, you will gain $1.7 per day. You will recover the $2 swap in 24 hours. And you are gaining 10% per day (-3% off of 13% for the 3% borrow rate for TUSD).

10% APR off of assets you were holding in any case. No lockups, no kyc, all defi. But now you have yUSDT from iearn.finance. What can you do with that? Well, go and deposit it into curve.fi and receive LP rewards;

Now you are making 20% off of assets you were long to begin with.

Withdraw and repay whenever you need by simply withdrawing from iearn.finance and aave.com