Hedging Mining!

Stablecoin Mining Strategy with 200%+ APR!

Detailed Analysis:

0) APT-kAPT is currently participating in activity subsidies on the Hyperion platform, currently displaying an APR of 79% (but my actual LP APR reached 200%+ last night);

1) This strategy can be combined with lending or contract hedging operations;

2) kAPT is the liquid staking token for APT;

3) Through the Kofi protocol, APT can be minted into kAPT at a ratio of 1:0.99998528;

4) kAPT can also be withdrawn back to APT through the Kofi protocol at a 1:1 ratio, but it requires a 14-day waiting period;

5) Additionally, kAPT can be obtained through DEX Swap;

6) When the amount of kAPT that 1 APT can be exchanged for is less than 0.99998528, users are more inclined to mint through the Kofi protocol;

7) Conversely, if the ratio is more favorable, users will choose to obtain kAPT through DEX Swap;

8) Therefore, the minimum range for APT-kAPT's LP should be close to 0.99998528;

9) Similarly, when the amount of kAPT that 1 APT can be exchanged for is greater than 1, users will tend to wait 14 days to withdraw back to APT through the Kofi protocol (provided that the earnings cover the 14-day waiting cost, currently the APT lending rate is only about 2%).

Operational Steps: Based on the current APT:kAPT ratio, decide whether to obtain kAPT through Mint or Swap. Then, set the appropriate range for APT-kAPT LP on Hyperion based on the range inferred from the above logic, and start mining!

Note: There is limited public information about the Kofi protocol, and I have also not been able to find more related materials, please be aware of the risks.
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TVL: $11.17M

DeFi Enthusiast: BitHappy