Sunday, October 23, 2022

Cryptocurrency reinvest yields pop-quiz answer

#Cryptocurrency reinvest yields pop-...'answer' to the quiz where to reinvest $AVAX yields: $sAVAX supply or $AVAX borrow?

Sure. 🙄

Surprisingly to me, reinvesting yields on either side nets about the same amount of $AVAX, but:

1. reinvesting $sAVAX supply generates A LOT more leverage AND debt!



2. repaying $AVAX borrow STILL INCREASES debt!


Analysis

So, then, it boils down to preference.

  • for me, more leverage means more yields, so I'm going with the resupply $sAVAX-option
  • but if you are debt-averse, then you'll want to repay the $AVAX borrow, ... or avoid leveraged yielding in the first place, FWIW 

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