Bloody times, eh?
Posted my $BOLD article recently (as a reminder, $BOLD by @LiquityProtocol is the only DeFi stablecoin to reach A- rating from @bluechip_org).
Liquity's showing great results under liquidations stress.
$BOLD held its peg perfectly.
Stability Pool yield jumped.
@Dune shows 37% average APY over the last 3 days.
How it works:
• ETH drops → some borrowers get liquidated
• The funds in the Stability Pool are used to repay that debt
• In return, depositors receive 5% more collateral back
• Depositors also receive 75% of borrower fees (paid in $BOLD). That is on top of the borrow fees they get continuously.
In other words:
Volatility → Liquidations → Depositors earn more.
On top, they earn points for upcoming friendly fork airdrops, iykyk ;)
TL;DR: $BOLD allows you to be on the paid side when liquidations happen.
Here's a quick strat:
Hold sBOLD or yBOLD → ~8% average passive yield
+ Buy YT when APR decreases, sell into volatility spikes
twitter.com/stacy_muur/status/...
