DGTEK TOKEN (USDG)

47% APY in this economy?

this @kamino user is abusing the new USDG incentives in the @solsticefi market.

he leveraged PT-eUSX and PT-USX by borrowing USDG.

now he earns yield from the PTs and gets paid to borrow USDG at the same time.

how to replicate the exact same strategy?

> step 1: acquire PT-eUSX or PT-USX on @ExponentFinance

these are fixed yield tokens, currently giving around 4-5% APY, backed by USX or eUSX, and expiring June 1st.

> step 2: deposit your PTs in the @solsticefi borrow market on kamino.
> step 3: borrow USDG (you're currently paid 4% APY to borrow USDG)
> step 4: go back to Exponent and swap the USDG for more PT.
> step 5: repeat until you reach max LTV (80%)

you're now earning 47% APY.

what are the risks?

- USX or eUSX depeg, which would make the PTs depeg too
- USDG borrow APY moves from -6% to +5%, which would make the loop unprofitable

note: USDG has incentives on both the lending and borrowing side, so supply in this market should stay high.

congrats! you're now a defi e

PT-USDG is live on Fira.

94% LTV. Fixed rate. Predictable cost of capital.

USDG goes from Pendle to Fira: a regulated stablecoin, composable across fixed-rate infrastructure.

The highest capital efficiency on Fira, built on the most transparent collateral.

@global_dollar https://t.co/YnEAunpnDu