24% APR Stablecoin Arbitrage Strategy!

Known Information:

1) Providing AMI in the Meso lending protocol yields 44% APR;

2) Borrowing AMI in the Meso lending protocol incurs a 23.2% APR;

3) Depositing USDC/USDt in Meso yields 7.62%/7.43% interest;

Logical Analysis:

1) The borrowing-lending spread in Meso is 44% - 23.2% = 20.8%;

2) If holding AMI, it can be directly deposited in Meso to enjoy 44% APR. Additionally, by borrowing AMI and then depositing it, the utilization of funds can be maximized, allowing for cyclic operations until borrowing is no longer possible, achieving at least 1.5 times the deposit APR;

3) If there is no AMI, one can first deposit USDC/USDt to earn 7.x% APR, and then repeat the above logic;

Personal Operation: Deposit USDC, borrow AMI, then deposit AMI, ultimately achieving about 23% APR (for testing only);

Caution: Do not engage in the cycle of borrowing USDC/USDt, as there is usually no liquidation risk (didn't sleep well yesterday, mind a bit scattered, may have errors);

Note: The core protocol is @Meso_Finance, and the high deposit interest comes from @Aptos subsidies;
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TVL: $207.73K

DeFi Enthusiast: BitHappy