Borrow $MIM against your interest bearing ETH (yvcrvSTETH) at Abracadabra to yield farm at Curve.fi

in eth •  3 years ago 

Borrow $MIM Youtube Thumbnail.png
Learn how to use Abracadabra.money to take out a loan denominated in $MIM (Magic Internet Money) against your interest-bearing $ETH position (yvcrvSTETH) in order to continue earning interest on your $ETH position and earn interest on what you've borrowed.

Here's how to do that:

Deposit your $ETH at Yearn.fi here: https://yearn.fi/invest/0xdCD90C7f6324cfa40d7169ef80b12031770B4325

Yearn supplies your ETH or stETH to the liquidity pool on Curve. steCRV are staked in the gauge on curve.finance to earn $CRV and $LDO rewards. Rewards are swapped by Yearn for WETH and resupplied to the liquidity pool to obtain more steCRV. This is how Yearn auto-compounds your ETH for you.

Your yvcrvSTETH is then pledged as collateral here: https://abracadabra.money/pool/12. It continues to earn interest whilst it's pledged as collateral. This is known as a "Lombardi Loan": https://www.lombardodier.com/home/private-clients/lombard-loans.html

(You can also loop this yvcrvSTETH you've deposited by following these instructions: https://docs.abracadabra.money/intro/leveraged-positions.)

Against your yvcrvSTETH, you're able to take out a $MIM loan. That's one way to get liquidity without selling your $ETH and triggering a taxable event.

You can then use that borrowed $MIM as liquidity here, https://curve.fi/mim, without staking in the gauge at Curve.

And then you stake your mimCrv tokens to earn $CVX on top of Curve’s native rewards here: https://www.convexfinance.com/stake

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#ETH #Curve #MIM

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