saga's stable yield architecture reveals structural inefficiencies across defi that nobody's arbitraging
75% APR on MUST/D stable-to-stable pairs
69% on MUST/USDC
36% on D/USD
these aren't promotional rates, they're sustained by actual protocol mechanics
the delta between saga's stable yields and base-layer lending (aave 5%, compound 4%) represents either mispricing or unrecognized risk. likely both
what's actually generating returns:
> CDP borrowing demand creates negative real rates for borrowers who pay to access leverage.
> liquidity routing fees from swap aggregation.
> automated rebalancing capturing spread.
> real credit market dynamics onchain
$D and $MUST are collateralized mechanisms designed for composability within saga's stack. the stable-to-stable pairing eliminates impermanent loss while capturing yield from orthogonal sources, borrowing fees not trading volume
this is fundamentally different from curve's model where stable yields come from CRV emissions (declining) or convex flywheel (ex
