Opening the discussion with the community to add rETH and sETH2 to the Tribe ETH pool. https://app.rari.capital/fuse/pool/146
The Tribe DAO recently opened this pool to boost stETH rewards, and the same can be done with rETH and sETH2.
How the stETH arb opportunity works:
Head to Tribe ETH Fuse pool → deposit wstETH → borrow ETH → stake
As long as borrow rates < staking rates (4.8%) and the stETH peg holds, it’s a low-risk rate arb
Look forward to hearing feedback from the community on adding rETH and sETH2 to the Tribe ETH pool.
I think it’s a great idea. This wst/r/sETH leverage is a great opportunity for Tribe.
First, it is important to be clear (if that is the case at all), that providing ETH for such an leverage opportunity is less profitable on a profit basis than exploiting this leverage opportunity (or really just investing ETH into those stacked ETH).
rETH/sETH2 should be carefully managed as liquidity for those is thinner than wstETH.
Aave will also provide higher leverage and might implement a better utilization yield curve (better than the fuse one).
Finally, rates shows that people are not arbitraging with Fuse 146 so a lack of marketing. I’m not even sure there is a plan to sustain rates if there was serious demand.
Bottom line, great opportunity but will need a great focus to make it useful.
I think this is a great idea. Currently StakeWise is in the process for setting up a chainlink oracle for sETH2 which should be far more secure than their univ3 twap used in https://app.rari.capital/fuse/pool/149. We should wait until then to add them to the pool.
I’m not sure if there is a chainlink oracle for rETH but we should certainly ensure they have a secure oracle before adding rETH to the pool and putting any users funds or the PCV at risk.