morpho

Earn, Borrow, Build on Morpho 
/morpho and app.morpho.org

DeFi R&D & Investments @ https://www.re7.capital/ 

Can someone at the @morpho team explain how I can borrow USDC at 4% (cbETH colllateral on @base) and then lend back to @re7 USDC pool for 20% (and I am not even counting $MORPHO incentives). 

Is it because the Moonwell USDC vault $WELL incentives are boosting the yield for everybody? (and why isn't this arbed out already?)

That's the power of isolated markets (and having a vault aggregating liquidity across all these markets).

When you are borrowing, you are borrowing directly from the cbETH - USDC market - interest rate seen in screenshot #1.

When lending into the re7 USDC Vault, the vault aggregates across all the following markets in the second screenshot. The higher yield comes from the the aggregation of the rates across all these markets.

This is impossible in a monolithic pool since all assets on the same chain would be pooled together and have the same interest rate model + risk parameters.

💸 Investing @ XAnge.vc

🏗️ Co-founder @arianeeproject & @nftfactory

Ok so a bunch of the yield comes from this cbETH/USDC vault that is way over-tapped: https://app.morpho.org/market?id=0xdba352d93a64b17c71104cbddc6aef85cd432322a1446b5b65163cbbc615cd0c&network=base

A rebalancing from this vault to another  cbETH/USDC vault which is less used, would sync back the rates...now the mystery is why ~900k of loans are ok paying 100% interest rate. 🤔

I make meals into masks and then eat them.🥪 /foodmasku 🌈 rc.xyz/foodmasku 🗽

Whoa. That’s crazy. Is the re7 pool also on base?

Holistic views of tech. Helping teams manage complexity and build more effective software – /framedltime – /sauce – /cto

Probably but interesting to understand how it happened.

this surely must be super short term, no?