Leverage yield farming on USDC/DAI

I am doing a small scale experiment on leverage yield farming on [Tarto.to]( . USDC/DAI pair offer 5%-7% APY. If I leverage it to 12.5 , there will be 36.97%. If TWAP(time weighted average price) for USDC/DAI is usually 1(or maybe 0.9997). My liquidation price is **0.7348** **-** **1.364** . What risks I have ? Anyone doing stable coin leverage yield farming ?

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3 thoughts on “Leverage yield farming on USDC/DAI”

  1. Check the apr breakdown, your estimated apr includes tarot farming rewards so your actual apr on the farm might be negative unless you sell tarot rewards

  2. Is leverage yield farming what I think it is? Borrowing a stablecoin against your deposit and then using it to swap then/or provide liquidity? I’m doing this against my avax (and wEth and WBtc) and then swapping some for tether and providing LP and loaning out usdc.e for double the borrow rate on another exchange

  3. The one I’m into has a different mechanism.

    I leverage on my Viperswap LP positions (USDC/DAI) on the Oindao, mint oneUSD stablecoins, then earn passive income from staking/yield farming. I can get liquidated once my collateralization ratio falls below 110%

    Taking note of the liquidation price is key to preventing loss, and ensuring the platform is audited against potential hack/exploit.


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