The degen seigniorage stablecoin strategy

Seigniorage protocols (more commonly, “Tomb forks”) are all the rage nowadays. There are some protocols pegged to stablecoins. Some of those offer extremely high rewards for liquidity pairs and single stake. Why not take advantage of that?

NOTHING HERE IS FINANCIAL ADVICE AT ALL. PLEASE DON'T SUE ME IF THIS GOES WRONG

TL;DR: Buy seigniorage tokens (GRAPE, CASH) close to peg, stake them in the single stake (or create an LP, even less volatile), earn ridiculous yields.

Risks

First and foremost, the main risk is that the protocol gets underpegged. This can happen, so try and minimize this by going with protocols that have a track record of hovering around peg.

Another risk is rug pull/smart contract hack, so make sure the project is audited, and follow the rug spotter guides in the Seigniorage Circus.

Alright, let's get on to the strategy

It's honestly very simple. Find a trustworthy stable-pegged seigniorage protocol, for example Grape Finance, DYOR.

Swap some of your coins for the pegged token (GRAPE, in this case, not WINE, that's a different strat).

Stake your delicious GRAPEs in the Vineyard, you can go with single stake or GRAPE-MIM Liquidity. At Grape Finance, it doesn't give too much of a difference, but for most protocols single-stake yields less than LP, and the LP is less exposed to the fluctuations of the pegged token.

Then... just leave it be. If you want, a helpful but optional part is to put it into an autocompounder (which does create sell pressure on the reward token though, beware).

Passive income! (but do check in once in a while of course)

Honorable Mentions

Here is a list of great resources and protocols to start with on your new degen strategy!

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