Curve’s Llamalend v2 Update Puts syrupUSDC Loop APR at 23.4%

Curve Finance’s Oct. 29 Llamalend v2 snapshot puts the modeled annual percentage rate (APR) for a 20x syrupUSDC loop at 23.4%, down from 37.1% a week earlier and below the sDOLA rate.

The same snapshot listed 37.1% for sDOLA and 16.6% for sfrxUSD, making syrupUSDC the second-highest of the three positions. In the Oct. 22 snapshot, syrupUSDC led at 37.1%, ahead of sDOLA at 35.0% and sfrxUSD at 26.5%.

The syrupUSDC figure fell 13.7 percentage points between the two observations; the comparison does not represent returns earned by borrowers.

The 20x APR model multiplies the collateral’s seven-day APR by 20, then subtracts 19 times the borrowing APR after that borrow. An example starts with $10,000 and uses $190,000 borrowed in crvUSD to build a $200,000 collateral position. The modeled APR is not a return recorded for a specific borrower.

Each Llamalend v2 lending market has its own vault, controller and automated market maker. As collateral approaches the liquidation range, the market can gradually convert it into the borrowed asset. A recovery can reverse that conversion, but it does not undo losses already incurred.

TokenPost previously covered the 37.1% estimate for the syrupUSDC loop.