The Liquity ETH carry vault on
@ipor_io just got a lot more interesting.
$1.63M in total value managed and the vault is nearly full. 347 WETH left before it hits maximum capacity. Then the bribes announcement landed and I understood why capital is moving this fast.
@LiquityProtocol is calling this the ETH Yield Machine and once you see how the pieces connect, the name makes sense.
- More WETH deposited raises the cap, which allows more BOLD to be minted. More BOLD minted means higher borrow fees.
- Higher borrow fees mean a bigger bribe pool for LQTY voters. Bigger bribes attract more votes toward the vault.
- More votes mean more PIL rewards flowing back in. Which brings more WETH in. The loop runs on itself.
@Sentinel_codes just committed $600 in weekly bribes to LQTY stakers for at least 3 months, with 100% of their PIL rewards going directly to the ETH vault. Targeting a steady 10% APR on ETH. Current spot APY sits at 8.51%.
347 WETH left before the vault hits maximum capacity. If you have been watching this one, now is the time to check.