https://interest-arb.web.app/#foundation The DeFi lending landscape just hit a new level of sophistication — and there are real edges hiding in the spread between protocols right now. Let's break it all down. 📊 The Lay of the Land The stablecoin market cap just crossed $310 billion. DeFi lending isn't experimental anymore — it's financial infrastructure. The most important number to know: the Sky Savings Rate (sUSDS) = 3.75% APY. This is the de facto yield floor for stablecoins, backed by $1.5B+ in real-world assets. Any protocol charging you significantly more to borrow than 3.75% is pricing in risk — or it's an arb opportunity. Translation: if you can borrow below 3.75% or earn above it, you have a trade. The big three lending protocols right now: 🔵 Aave v3 — $44B+ TVL, 60% of the decentralized borrowing market, just launched V4 "Frontier" 🟣 Morpho Blue — $13B+ TVL, modular architecture, 70% lower gas than legacy protocols 🟡 Euler v2 — permissionless vault architecture, 85%+ capital utilization Plus Pendle for yield tokenization and Contango as the 1-click execution layer for all of this. ⚙️ The Core Mechanic: Recursive Lending (Looping) This is the engine behind almost every strategy we'll talk about. The formula: L = 1 / (1 − LTV) 90% LTV (Aave E-Mode stablecoins) = up to 10× leverage 82.5% LTV (ETH/USDC) = up to 5.7× leverage 93% LTV (stablecoin pairs) = up to 14.3× leverage The loop: deposit yield-bearing collateral → borrow a lower-cost stablecoin → swap for more collateral → re-deposit → repeat. Key insight: On Aave, your collateral earns supply interest while it sits there. On Morpho, collateral is typically idle unless you're peer-to-peer matched. That makes looping structurally more profitable on Aave for certain pairs. 🎯 The Four Core Strategies 1. Delta-Neutral Stablecoin Looping (Aave, Arbitrum) Supply $10K USDC → enable E-Mode → borrow USDT → swap to USDS → re-deposit → repeat ~4 times

What are your guys thoughts on Strc? As an investment and as a bottom indicator? Also to use in defi?

Is anyone playing with this? I been watching it for some time now and also saw a recent podcast that impressed me. Additionally apxUSD for the pips or apyUSD for the yield (around 13%), which is better? Looking for feedback to either make the leap or stay away…

GM DeFi nerds! 🤓 Today we're diving into two of the most powerful—and controversial—primitives in DeFi: Flash Loans — Borrow millions with ZERO collateral (for 13 seconds) Just-In-Time (JIT) Liquidity — The MEV strategy that's literally killing passive LPs These mechanisms have facilitated over $2 trillion in transaction volume in 2024 alone. They've democratized arbitrage, improved market efficiency, and also enabled some of the biggest exploits in crypto history. Let's break down: ⚡ How flash loans actually work (the atomicity magic) 💰 Legitimate use cases (yes, they exist) 🚨 How they weaponize smart contract bugs 🎯 The JIT Paradox (and why it's killing Uniswap LPs) 🔮 What's coming next (AI arbitrageurs, intent-based solutions) This is gonna be technical. Buckle up. 🚀 ⚡ Flash Loan Mechanics: Borrowing Millions with Zero Collateral Flash loans sound impossible. How can you borrow $100M without collateral or identity verification? Answer: Atomicity. ⚛️ The Magic of Atomic Transactions The Ethereum Virtual Machine (EVM) has a critical property: atomicity. What this means: A series of operations is indivisible. Either ALL operations succeed, or the ENTIRE transaction is discarded (reverted). Think of it like this: You're moving furniture. Either: ✅ ALL furniture makes it to the new house (success) ❌ Everything stays in the old house (revert) There's NO in-between state where half the furniture is moved. It's all or nothing. In blockchain terms: A flash loan moves the blockchain from State A to State B only if the borrowed funds (plus fee) are returned within the same transaction. If you can't repay? The entire transaction reverts. It's as if the loan never happened. ⏮️ The Technical Lifecycle (Step-by-Step) Here's how a flash loan actually executes: Step 1: Initiation Your smart contract calls the flashLoan() function on a lending pool (Aave, Balancer, etc.). solidityaave.flashLoan( receiverAddress, assets, // [USDC] amounts, // [$100,000,000]

Anyone here using Borosfi? Hoping for feedback, or better yet a tutorial if anyone is feeling generous with their time! 😅