I don't know many flywheels this clean.
This new vault on
@ipor_io just blew my mind. This is how it works and why I think it's super interesting.
@LiquityProtocol lets you mint stablecoin debt at fixed rates. That liquidity gets deployed into
@CurveFinance. The carry stays profitable because the rates self-adjust.
The part that closes the loop is PIL (Protocol Incentivize Liquide); a cut of what borrowers pay goes straight into incentivizing liquidity on Curve,
@Uniswap, or wherever the mechanism needs support.
APY is 27.91% right now. Btw, don't anchor on that; it needs a few days to stabilize.
I honestly don't know if it holds at scale. But a flywheel where users fund their own liquidity incentives is impressive.