LeoFinance - +70% APR Yield in Stable Coins? (Terra's UST)

Who does not want to earn massive amount of passive income. The dream of retiring and relaxing at the beaches all year long while collecting daily passive income to live on. This is why I chase stable coin yields. In search of the next biggest and greatest cryptocurrency investments out there while verifying its sustainability for the long haul. Long as in years if possible.

Since I looked into yields of stable coins I have found plenty of projects worth investing and by far the easiest is Terra's Anchor protocol. Yet with the ease comes with not the best APR yields but not the worse either. As I progress in learning more of Defi I have come to find there are multiple ways to compound one's crypto assets. Today we will be looking at a project that is forked from compound.finance that is know as hundred.finance. We will also be taking a look as to what all this means for Terra's UST. Enjoy.

hundred.finance

hundred is a multi-chain lending and borrowing platform forked from Compound.finance. It has a native token HND and users holding the token can stake them on the platform through a voting process to enhance the yields they are earning in their stable tokens. Lets take a look at an example of how this all works.

Harmony on Hundred

Around a month ago hundred had bridge Harmony over to the platform. Since Terra's UST has its own bridge with Harmony it meant investors could place UST into hundred to earn a yield.

Once UST is on hundred investors can supply the platform with UST as liquidity to earn a % APR. Currently the supply % APR is a minuscule 0.01%. This is like putting money into a conventional bank :(

Earlier I have mention the platform has a native token called HND. The platform although fork of Compound it also has a configuration similar to Curve finance. This is where the magically 70% APR on UST can be earned.

How to Get 70% APR on UST?

On to the juicy part of the platform. In order to earn up to 70% APR on UST investor needs to stake their HND tokens on the platform. HND price has risen since its launch and currently stands at a little under $3.5 each.

The total supply of HND ever to be created is 100,000,000 and almost have of the tokens are locked up into a four year distribution.

The way to earn higher % APR is to stake HND and use it to vote on the stable coin that will earn more yield. Majority vote will put majority % APR earn on that voted token. So once HND is staked, investor votes on their stable coin such as UST and the HND turns into veHND. veHND will be locked and the longer the lockup the higher the percentage of voting power on the specific stable token.

On Harmony chain there is nearly 355k HND currently staked but only a little over 216k staked. Either way majority of the veHND has voted for UST hence UST would earn the highest % APR. The updates every so many hours and in the following one token during snap is less than an hour away. This vote updating is the epoch vote.

In both current vote weight and epoch vote weigh UST is well in the lead therefore users who supply and stake their UST will earn in % APR to the tune of 28.44% - 71.09%.

Conclusions

Why would I mention such a yield on UST when hundred.finance is not even on Terra? That is the wrong question. The correct question is where are all the UST invested in?

With a yield as high as 71.09% there will bound to be plenty of investors staking their UST on hundred. Currently in the Harmony chain there is over 31.3 million UST on hundred.finance. This is way ahead of second USDT at a little over 3 million.

As a recap in order to earn the high % APR yield on UST you must first bridge over UST to your Harmony wallet via Terrabridge. From there supply the UST onto hundred.finance. In addition purchase some HND and stake them on hundred.finance. The more HND you purchase and the longer you stake the stronger your voting power is. Then vote on UST as the stable coin to earn highest yield. Majority vote will earn majority of the yields. Finally stake your UST onto hundred.finance.

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!