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Euler Finance has been a day-1 partner on TAC and has seen substantial growth since the July mainnet. In under two months, Euler on TAC is currently:
- By far the largest DeFi dApp on TAC with over 60m supplied TVL and over 3x the TVL of the next DeFi dApp
- High utilization ratio due to performant strategies, with TVL doubling over the past two months
- The fourth largest chain across all Euler deployments, and the largest, fastest growing new deployment, surpassing stalwarts such as Unichain and Base
- Enabling telegram-based users’ access to best-in-class lend/borrow strategy yields
What are the biggest drivers of Euler’s growth on TAC? Let’s dig in:
Looping Strategies:
LBTC/cbBTC
The most popular BTC-denominated strategy comes from the cbBTC/LBTC Edge UltraYield Cluster market, with over $4m TVL. Lombard’s LBTC is a liquid-staked Bitcoin that brings native yield to BTC holders, and Coinbase’s cbBTC is the ERC20 backed by Bitcoin held by Coinbase. Due to the high LTV, incentivized lending yields at 4.9% and low borrowing yields at ~2.4%, by using cbBTC as collateral and borrowing LBTC, the max ROE for this specific pool, assuming a 9.98x multiplier, reaches 37%. This is especially attractive as there is a low risk of liquidation and users can remain exposed to Bitcoin as the base asset.
USDT/sUSN:
For those more comfortable with stablecoin exposure instead of being BTC-denominated, Noon’s sUSN offers looping of up to 28% in their USDT/sUSN strategy. Noon Capital's sUSN is the yield-bearing staked version of its stablecoin $USN. Users can mint $USN at a 1:1 USD peg with USDT or USDC and then stake it to receive $sUSN. With a max LTV of 85%, the multiplier can reach 6.65x, allowing best-in-class yields across the stablecoin landscape and similarly a low risk of liquidation. The pool currently has $6.3m in liquidity, providing ample opportunity for stablecoin farmers to enjoy high yields with low liquidation risk in size.
tsTON/TON:
Depending on which asset is preferred to be used as collateral, both tsTON and TON have favorable strategies. Although tsTON collateral has lower liquidity and higher $WTAC rewards, this results in a slightly higher headline max ROE compared to its counterpart. Again, due to both assets being correlated, with tsTON appreciating due to staking rewards, the risk of liquidation remains fairly low.
wstETH/WETH:
Depending on which asset is preferred to be used as collateral, both WETH and wstETH have favorable strategies, although WETH collateral has lower liquidity and extra rEUL awards, making the headline max ROE slightly higher than its counterpart.
Other strategies:
For other stablecoin strategies, there are great options such as the sUSN/USN, USDT/USN, USDT/wstUSR that provide best-in-class yield opportunities depending on which collateral users want to supply.
For those that are less concerned with liquidation levels and have specific assets to use as collateral, great opportunities exist in strategies like TON/USDT and cbBTC/USDT, which offer over 40% max ROE on multipliers up to 5x.
Lending markets:
For those who want to refrain from looping or using leverage, there are also solid lending opportunities in Euler that receive a mix of $WTAC incentives and rEUL incentives on top of the native lending yield.
- USDT through Re7 Labs Cluster provides 17% APY
The yields, boosted with a combination of $WTAC and $rEUL rewards, present best-in-class yield on USDT, far surpassing other USDT lending yields across all chains.
- TON and tsTON denominated clusters provide anywhere from 5-14% APY
Similar to the USDT lending pool above, these Euler TON pools present best-in-class yields, far surpassing other dApps that provide single-exposure lending yields.
- Majors, from cbBTC to wETH
Due to the incentives distributed by TAC, supply yields on both WETH and cbBTC are among the best across all ecosystems, sustaining high single-digit yields on a scalable size.
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