17/05: The Omnipool Yields
Exploring the latest LAVs and current Conic APRs
This transmission examines the latest liquidity allocation votes (LAVs) results, the recent TVL climb, and the Omnipool competitive yields.
Latest LAV results
The latest LAV went live on May 9th and concluded on May 14th. The newest distribution of each of the pools is as follows:
crvUSD POOL
USDT+crvUSD — 57.57%USDC+crvUSD — 42.43%
ETH POOL
ETH+stETH — 30.53%ETH+stETH (ng) — 26.10%WETH+frxETH — 24.42%ETH+frxETH — 18.95%
USDC POOL
PYUSD+USDC — 41.66%USDC+crvUSD — 28.67%FRAX+USDC — 18.57%DAI+USDC+USDT — 11.10%
USDT POOL
USDT+crvUSD — 70.65%DAI+USDC+USDT — 29.35%
FRAX POOL
FRAX+sDAI — 45.20%FRAX+USDC — 31.60%FRAX+PYUSD — 23.20%
The biggest gainer of these most recent LAVS is the ETH+frxETH curve pool, FrxETH is apparently very popular this week and saw a 709 bps increase. Most of these votes appear to have come from the ETH+stETH (ng) pool, which took a 577 bps hit.
The USDC pool saw the largest swing, with DAI+USDC+USDT dropping from 17.45% → 11.10% and only managing to secure 130,000 votes. PYUSD+USDC continues with its dominant foothold in the USDC pool, locking in another 4.60%.
Competitive Yields
Over the last couple of weeks, we’ve started seeing Conic’s TVL begin to creep up—with the low of $3.3M on April 17th—with the protocol currently sitting at $4.85M.
This could be likely due to several restaking protocols whose point programs ended. A number of these airdrops appeared to cause a lot of disappointment on Twitter, with rewards rather lackluster than what was hinted at. Are we starting to see the farming capital looking for greener pastures?
Let’s examine the current Conic APR offerings, starting with crvUSD:
With a total value locked at $2,68M, the current APR is a whopping 30.63%. This is the second-highest Omnipool yield currently available.
Next, we have USDC, which has a modest $1M in TVL and offers a 20.66% APR. The ETH Omnipool is a little under $1M in TVL and offering 20.72% in yield.
Now to be fair we have seen some LRT ‘fixed’ yields over at Pendle, between 24.6% → 30%, but considering you have to wait till maturity to realize those gains and risk being held hostage in LRT tokens (due to lack of withdrawals) the ETH Omnipool is still a fantastic alternative—let’s us not forget you also have the diversification within the Omnipool as well.
The USDT is currently the highest-yielding Omnipool, at 40.83%. For a couple of weeks, it was shown to be massively inflated at 500%+, but as Conic droid bb8 mentioned in Discord, the calculation utilizes the APY based on a single day and the spike was due to the pool realizing a lot of positive slippage.
Lastly, we have the FRAX Omnipool, which has a current yield offering of 21.40% but, unfortunately, has not yet garnered any interest.
Overall, the yields are very competitive. There are definitely higher-risk strategies in the market but those come with significant Impermanent loss (IL) risk.
So what comes next? Well, there have been interesting talks in Discord about potentially integrating Ethena; this could still bear fruit. We’d also like to see the discussions around a llama lend LAM taken to the discourse once it’s been battle-tested a little while longer—last year, Conic was thriving in unison with crvUSD, and continuing to foster that symbiotic relationship seems like an easy win.
Ultimately, we’ll have to see how Conic v2.1 unfolds and what direction the droids decide to proceed.