The days of DeFi Yield Farming are far from over. Instead, it has simply been overshadowed by the epic BTC ride over this past month in which it continuously made fresh ATHs each week.
Well, today, I would like to bring you news about some great new yield farming options for those who are still keen on making some additional revenue stream from their idle assets.
The farming options are on Harvest.Finance, who have recently added four new farming pools with some instance APY returns currently;
The four farms are;
- BAC-DAI - ~668.91% APY
- DAI-BAS - ~547.4% APY
- MIC-USDT - ~9,924.04% APY
- MIS-USDT - ~8,289% APY
As you can see, the current yields provided by these new farms are quite extraordinary.
The first two (BAC-DAI and DAI-BAS) are from the Basis.Cash liquidity pools. BAC is Basis Cash, an algorithmic stablecoin. Basis Share, an inflationary rewards ownership token, derives rewards from increased Basis Cash adoption.
The other two (MIC-USDT and MIS-USDT) are from Mith.Cash, which is forked from Basis.Cash. MIC is Mithril Cash, an algorithmic stable coin that is pegged at $1. MIC is Mithril Shares, a token provided for users that stake their assets in the Mithril Cash protocol.
The MIC-USDT and MIS-USDT pairs were first spawned from Sushi Swap.
Source: MIC-USDT Pool on SushiSwap
Over the past month, the total liquidity locked inside MIC-USDT has skyrocketed. On December 29th, when the project was first launched, there was just $12K worth of liquidity in the pool. Since then, the liquidity has now grown to a total of $69.5 million.
The BAC-DAI pair resides on Uniswap.
Source: BAC-DAI Pool on Uniswap
This also has seen a whopping growth in liquidity over the past few weeks. On November 29th, it was just sitting around $820K and has since grown to over $77 million today.
As you may have noticed, the APY generated from these four pools is absolutely INSANE. The APY yields you can see on the screenshot in the introduction show the instant APY - the APY it creates today.
The following screenshot shows the 7-day average for these four individual pools;
Source: Farm Dashboard
It shows that the rolling 7-day average is even higher than the instant APY you get today on the MIS-USDT and MIC-USDT pools. The 7-day average for BAC-DAI and DAI-BAS is slightly lower. Regardless, if the 7-day rolling APY is higher or lower, the yields are truly staggering right now!
What Basis Cash and Mith Cash Are?
Basis Cash was the first of these two to launch, beginning its journey into DeFi around August 2020;
Mithril Cash is much fresher, only launching toward the end of December 2021;
Basis Cash is trying to create an algorithmic stablecoin, called Basis Cash (BAC), through a protocol of three different tokens. The first is BAC itself, which is designed to be as close to $1 as possible. The second is Basis Shares (BAS), an ownership token for the entire protocol, and the third is Basis Bond (BOND).
Both BAS and BOND are designed to help keep BAC as close to $1 as possible.
If the price of BAC is beneath $1, users are able to buy BOND at a particular discount, with the expectation of future profits when they redeem the token. Each BOND token promises the holder one BAC token, and the idea is that they redeem it when the price of BAC rises back above $1 - granting them a profit. However, the specification states that hey can only redeem BAC from BOND when the price of the BAC oracle is above $1.
On the other side, if the price of BAC is above $1, the redemption of BOND tokens is allowed, and BOND holders are likely to sell their BAC profits - driving the BAC price back to $1. If it still remains above $1, the increased demand of Basis Cash causes new BAC tokens to be minted and distributed to BAS holders, who will then go on to sell these BAC - driving the price lower.
This mechanism is what ensures BAC always continues to remain as tightly pegged to $1 as possible.
Mithril Cash is a fork of the Basis Cash protocol. Their mechanism is exactly the same as described above for maintaining the MIC peg to $1 through Mithril Shares (MIS) and Mithril Bonds (MIB).
Final Notes on the Insane APY
Let's be honest; these insane APY levels won't be sustainable over the long term. However, it's a great number that works like a magnet for farmers willing to do some honest work.
On top of that, it does kind of seem like Basis Cash and Mithril Cash are connected. Aside from the fact that they are forks of each other, there are also some very similarities in the layout of their individual website. Nevertheless, both their communities are pretty active and they have a decent track record with partnerships between Basis Cash + Pooltogether or Mithril Cash + Pickle - both good signals.