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Flare Finance ExFi Beta V2 Launch


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So I'm one week in Flare Finance with the strategy of putting my SGB up as collateral to borrow CAND against it. Then I use the borrowed funds to provide liquidity in the CAND/SGB AMM. Then I stake those LP tokens to earn DFLR and stake the DFLR to earn more SGB and CAND.

It looks the value of my LP tokens have earned enough SGB to cover what I'm losing on delegating, and well more than enough CAND to make up for my borrowing fees. And I've earned about 1 DFLR for every $300 worth of LP tokens staked.

I don't know if the loan risk or the amount of work necessary to maintain these positions is worth it, but it's a viable strategy.

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On 11/23/2021 at 4:47 AM, Ripley said:

My frank opinion based on my experience. There is no good way to make money on v2 if you are starting today (or even day 1, minute 0 of v2) because there is no market for DFLR, so you don’t know what your rewards are worth, and no good liquidity for SGB/CAND.

If you ignore LPs, which I did not participate in and so don’t have an opinion, there was only one shot at being safely profitable in Loans and that was within the first few hours of v1, when there was a lot of DFLR available to be distributed in loans. The most profitable way to make money on v2 is to stake the DFLR one already has from the first few hours of v1, without participating in any v2 products.

I made 15% in net profits during v1, and currently at ~1.5% net profit in v2; both because I was able to get in early during v1.  I expect profits in v2 to stagnate at 2-2.5% by end of this week. If I didn’t participate in loans at all during v2, and just staked my DFLR, I’d have had 3.5-4% net profits.

FWIW, I gave feedback to both Frenchie and Delvin around need for tools and arbitrage to sustain interest. They may have additional challenges with having a market for DFLR (it is intended for Flare and is not expected to have any value, to be swapped for YFLR).

One thing that changed over the past week, is that the Borrowing Fee is now 2.05%, up from 0.71% on Day 1. This has been very good for me, because DFLR staking has been giving me good returns. 

I expect this activity to continue going up into the ExFi airdrop in a couple of weeks. Hope to see additional liquidity (S-Assets) arrive so these products can benefit and mature.

Edited by Ripley
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