0xSearchie
@0xSearchie
Core Team @hyperlendx & @aviyafinance 🟢
Joined April 2021
606 Following 6.7K Followers
kHYPE borrows getting hella cheap
One of my favourite lowkey strategies on HyperLend is using LSTs to effectively lower your borrow costs by quite a substantive amount.
Let's say you're holding $1 Mill in HYPE. If you chose to deposit it as kHYPE into HyperLend you keep your staking rate, which averages around 2% APR, around $20k a year.
Then, you decide you need some liquidity, so you decide to take out a $500,000 USDC loan. USDC currently costs ~7.5% APR to borrow, annualising out to ~$35k a year in interest.
By transitioning into an LST and using the staking interest accrued to offset your borrow cost you now have a loan of $500,000 at the effective borrow cost of $17,500 a year, or 3.5% APR.
gLend.
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