ETH Alpha Alert: Find Your Edge with Sphere Dashboard
Looking at the 'Borrow Rate' section of the dashboard, a standout opportunity emerges: the USDC borrow market on @sparkdotfi.
It currently leads with an attractive borrow rate of just 1.56% and a utilization rate of 24.96%.
While the current rate is low, it's essential to understand the market's trajectory:
1-day average: 1.52%
7-day average: 5.53%
30-day average: 5.86%
An additional $10 million in borrowing will increase the pool's utilization rate by only 20%, bringing it to 44.96%, while keeping the projected borrow rate at a modest 2.83%.
The most compelling part? This allows for an effective looping strategy with ETH.
The best looping opportunity identified by the dashboard is the wstETH-USDC loop on Spark, currently yielding a net APY of 4.71% with 2x leverage.
Note that the maximum leverage for this opportunity is 6.24x.
This would require a trade of $6.24 million of ETH for $5.2 million of USDC, which is expected to incur approximately -2.22% in slippage.
To discover more such high-yield, low-risk opportunities and analyze their parameters in real-time, the Sphere dashboard is an indispensable resource.
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