Exam question: How to obtain 30%+ APR with USDC, and earn Sonic points?

➤ Known:

1) Depositing USDC in Silo can earn an APR of 7.3%.

2) Borrowing stS in Silo only costs an APR of 0.9%.

3) stS is a yield-compounding liquid staking token of S.

4) Providing stS/S LP on Beets can earn an APR of 23.48%.

5) Providing stS/S LP on Shadow can earn up to 37% APR.

6) stS/S can enjoy 8 times the Sonic points.

➤ Conclusion:

1) By depositing USDC and borrowing stS, a net APR of 7.3% - 0.9% = 6.4% can be obtained.

2) Providing stS/S LP on Beets can earn an LP APR of 23.48% plus a net APR of 6.4%, totaling approximately 29.88% APR.

3) Providing stS/S LP on Shadow can earn up to 37% LP APR plus a net APR of 6.4%, totaling approximately 43.4% APR.

➤ Conclusion:

1) stS, as a yield-compounding liquid staking token of S, has a pegged relationship with S, thus carrying lower decoupling risks.

2) Depositing USDC ensures a guaranteed return while participating in the relatively stable stS/S token pair, making LP mining risks smaller.

3) Additionally, Sonic points can be earned, with opportunities for airdrops in the future.

Answer: Deposit USDC in Silo and borrow stS, then choose to provide stS/S LP on Beets or Shadow to earn a higher APR.

Exam taker: BitHappy｜A DeFi miner!