Benqi sAVAX LST arbitrage, risk-free!

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I came up with a USDC neutral arbitrage strategy that is NOT on @DefiLlama without any coding ~10% APR Let’s dive in, 1⃣How to execute this arbitrage (NO coding needed) 2⃣Strategy constraints 3⃣Strategy APR

Big shout out to @SirMoremoney for the inspiration and I made it as a USDC strategy utilizing the underlying yield source twitter.com/SirMoremoney/status/1626131603712884742

To execute this arbitrage 1⃣Deposit USDC to @AaveAave / @BenqiFinance 2⃣Borrow AVAX up to 65% LTV 3⃣Swap AVAX to sAVAX on DEX 4⃣Unstake sAVAX on BenQi 5⃣Repeat 2 to 4

Strategy constraints 1⃣ Note that how much to borrow AVAX is adjustable accordingly as USDC max LTV on: 🔹AAVE - 82.5% 🔹BenQi - 80%

Strategy constraints 2⃣ KyberSwap provides best sAVAX/AVAX rate and below are all the rates: @KyberSwap : 1000 AVAX -> 944 sAVAX @Platypusdefi : 1000 AVAX -> 943 sAVAX @paraswap : 1000 AVAX -> 938 sAVAX @1inch (also routing on Kyber): 1000 AVAX -> 944 sAVAX

Strategy constraints 3⃣ Liquidation risk on AVAX debt - as if price of AVAX may increase the debt ratio. If you borrow AVAX up to 65% LTV and given 86.25% of liquidation threshold on @AaveAave , you will have around 30% of headroom on AVAX price appreciation.

Strategy APR - 1st part 1) lending & borrowing USDC lending yield = 2.5% AVAX borrow rate = 5.25% resulting = 2.75% (paying)

Strategy APR - 2nd part 2) arbitrage yield from unstaking sAVAX Unstake on BenQi with 1 AVAX = 0.937 sAVAX. Equivalent to get 1007.5 sAVAX That yields 0.75% on every arbitrage Assume arbitrage twice a month for 12 months = ~18% APR

Strategy APR = (lending & borrowing) - (arbitrage yield) = -2.75% + 18% * 70%LTV = ~10% Noted that as only 70% of borrowed AVAX used for arbitrage yield. SAFU_

You know what to do 🙏🙏 twitter.com/StrategySafu/status/1626438869272113155

I know you must love it! @phtevenstrong @luigidemeo

Strategy constraints 2⃣ in case that tweet is not available to you!