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Juicy Sushi. High stablecoin yields on MOVR

Exclusive Research

  • SushiSwap on Moonriver offers up to 36% yield on stablecoin pairs.
  • Bullish on $MOVR? Earn up to 112% when staking with $MIM.
  • Small pool sizes mean that yields can change quickly.
  • Taking some profits and earning on stablecoins has never been sweeter.

Juicy yields on stable coins

Moonriver is the experimental chain to Moonbeam, the EVM-compatible parachain that is set to win Polkadot’s parachain auction two. Moonriver, with its native MOVR token, promises easy porting of Ethereum dApps to its blockchain. Since Moonriver is a parachain on Kusama, the experimental chain to Polkadot, dApps profit from the security and performance of Kusama and can access all projects that can interact with the Kusama Relay Chain.

SushiSwap was one of the first major decentralised exchanges to port their dApp to MOVR and offers swapping, pooling and farming. Since these are the early days of Moonriver, pool sizes are minuscule and yields are high.

At the time of writing, 23 November 2021, USDC/USDT pairs generate 23% APY. This yield was as high as 1400% at the end of October and 60% just a week ago.

Watch out for the new kids

Another stablecoin pair, FRAX/USDC, generates 36.5% APY, and for those who hold Moonriver tokens and don’t mind a bit of volatility, Sushi offers 239% APY on the pair of $MIM stablecoin and wrapped $MOVR.

Both FRAX and MIM are new additions to the stablecoin game and pursue different strategies to collateralise their tokens. These strategies come with higher volatility and are not as battle-tested as Tether. Although just how well funded Tether is, has been the subject of a lot of debate.

While there are only a handful of farms available at the moment, their number is growing. New pairs offer excellent yields until they reach a threshold of liquidity.

Swapping in and out of farms costs less than $1 when using MOVR and Sushi’s BentoBox can reduce that even further.

Small pools, varying yields

All of this innovation and yield comes at a price, though. Pool sizes are a fraction of their counterparts on Ethereum. As their size increases, yields change dramatically.

Yields are paid in $SUSHI and $MOVR, which both exhibit high volatility. If yields need to be converted into other currencies, additional swap fees apply. While these are typically below one dollar on the Moonriver network, this can still matter for small amounts. Unstaking LPs and removing liquidity also come with their respective fees.

As always, impermanent loss is an issue and has to be taken into account. A solid calculation of end-to-end costs should be the basis of any allocation to a liquidity pool or a farm.

Conclusion

With yields that high on one of the most trusted and secure decentralised exchanges, here is an opportunity that is just too good to pass.

With the crypto market at all-time highs, it makes sense to take some profit and park value on a farm with decent yields.

Nothing in this article constitutes professional and/or financial advice. The content is provided exclusively for informational and/or educational purposes. Nothing is to be construed as an offer or a recommendation to buy or sell any type of asset. Seek independent professional advice in regards to financial, tax, legal and other matters.

The full article is only available for Numbrs clients.

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