Stablecoin holders seek stability in turbulent markets, allowing for predictable returns through U.S dollar-denominated yield. The largest risk most crypto investors are exposed to is market volatility, as digital assets may fluctuate by double-digit percentage points in a single day. Thanks to new innovations in decentralized finance (DeFi), stablecoin holders can earn low-risk yields that beat treasury bonds and even blue-chip corporate bonds.
Ethereum application Archimedes (ARCH) has launched a leveraged stablecoin protocol at the intersection of NFTs, DeFi, and stablecoins. While most think of digital art and cartoon monkeys when hearing the term NFT, non-fungible tokens are being used within finance, real estate, and beyond.
Archimedes lending pools allow investors to take control of their stablecoins through transparent, auditable smart contracts on the Ethereum network. Allowing for up to 10x leverage on stablecoin positions, users can now earn boosted yield via Origin Dollar on the Archimedes dapp.
Origin Dollar earns yield through market-neutral, battle-tested DeFi strategies while remaining fully collateralized by leading stablecoins (USDC, Dai, and USDT). Given its competitive risk-adjusted returns, investors looking to earn yield while protecting their capital often choose OUSD. While Origin Dollar yields are higher than using Aave, Convex, or Compound alone, users can now further boost their yields through Archimedes.
Interestingly, levered positions on Archimedes are represented through NFTs. Being an NFT doesn’t make the position higher risk––NFTs are a necessary inclusion as each position is unique based on the amount of capital and leverage allocated to a position.
As the non-fungible token space expands past digital art, innovators are finding ways to implement the technology into DeFi. Uniswap V3 was the first major example of this, allowing users to concentrate their liquidity provision between a set of prices. Giving fresh utility to stablecoins, NFTs now offer a way to leverage stablecoin yields in a self-custodied manner through Archimedes and Origin Dollar.
For advanced users:
Investors that provide liquidity to Curve pools can also benefit from Archimedes leverage engine. Lenders may provide lvUSD (Archimedes stablecoin) or 3CRV to the protocol’s lvUSD/3CRV pool on Curve Finance. In exchange, lenders are rewarded with token emissions denominated in ARCH, partnered protocol tokens, and a share of the pool’s fees.