Beraborrow
  • Overview πŸŒ„
    • What is Beraborrow?
    • How to use Beraborrow?
    • Key features
    • Leverage in Beraborrow
  • Vaults
  • Managed Vaults
  • Auto Compounding Vaults
  • Borrowing 🀝
    • Dens
    • Understanding Collateral
      • Collateral Screening and Parameter Methodology
      • iBGT as collatoral
      • Kodiak Islands as Collateral
      • iBERA as collateral
      • bHONEY
      • ETH and BTC based Derivatives
    • Fees for Borrowers
    • Collateral Ratio and Liquidation
    • Recovery Mode
    • Flash Loans
  • Pricing Assets
  • NECT (Stablecoin) 🍯
    • What is Nectar ($NECT)?
    • Liquid Stability Pool (LSP)
    • Redemptions
      • $NECT Peg
    • sNECT Arbitrage Opportunities
  • POLLEN 🐝
    • What is POLLEN?
    • Pollen Emissions
    • Why hold POLLEN?
    • aPOLLEN
    • cPOLLEN
    • vePOLLEN
  • Boyco POLLEN Claim
  • Proof of Liquidity 🌊
    • Importance of Proof of Liquidity
  • AUDITS πŸ”’
    • Audits
  • Additional Resources πŸ”§
    • Contract Addresses
    • Brand Assets
    • Glossary
    • Official Links
  • πŸ‘₯User Guides
    • Den Management
      • How to Open a Den
      • How to Close a Den
    • Liquid Stability Pool Management
      • Deposit NECT into the liquid stability pool.
      • Withdraw NECT from the liquid stability pool.
  • Strategies
    • Euler NECT/USDe Stablecoin Looping
    • Beraborrow Structured Products
    • Yield Looping
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On this page
  • Strategy Overview
  • Link to strategy
  • Guide
  • For simple borrowing
  • For Yield maximisers
  1. Strategies

Euler NECT/USDe Stablecoin Looping

This page outlines the stablecoin looping strategy involving NECT and USDe on Euler finance's curated markets.

PreviousWithdraw NECT from the liquid stability pool.NextBeraborrow Structured Products

Last updated 1 month ago

Strategy Overview

This strategy leverages the NECT/USDe stablecoin pair, maximising APY through recursive lending and borrowing. It works as follows:

Deposit NECT into Euler vaults to earn a base supply APY (~30% at time of writing) while simultaneously using it as collateral to borrow USDe. Loop borrowed USDe back into NECT via swaps, and re-deposit into Euler.

  • Target APY: 30–260%+ depending on leverage.

  • Max Leverage: Up to 9.5x supported on Euler.

  • Safety Ratio: Maintain a Loan-to-Value (LTV) with a reasonable liquidation buffer (max LTV: 91.5%).

This strategy hinges on:

  • NECT/USDe price peg stability

Link to strategy

Guide

For simple borrowing

Those wishing to simply borrow USDe against their NECT collateral without any leverage can simply click on the 'borrow' tab for the strategy page as per the image above. This will take you to this interface below:

Input the desired amount of NECT to deposit and a corresponding amount of USDe debt. Click the 'Add to queue' button, followed by 'execute.

For Yield maximisers

Click on the 'Multiply' tab from the first image above. This will navigate you to an interface like such:

Toggle across to the desired multiplier, click 'Add to queue' and then execute. The Euler interface will then display your position value, including your account margin, debt and position health ratio.

Low slippage NECT↔USDe conversion. Right now, there is over $10mil in liquidity for the NECT-USDe pool on Kodiak:

https://v3.info.kodiak.finance/#/berachain_mainnet/pools/0x07fe2ff6c62ff2aaf3892f75a22b9059a9f2273a
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