Crypto is out, Gold is in🪙 🚨BEST GOLD YIELD GUIDE EVER MADE🚨 I'm only half-joking. But definitely bookmark. 🧵👇

Gold is difficult to get a native yield on. Virtually all gold yields involve collateralizing a gold derivative and farming against borrowed stables. That said, you can deposit smart XAUT/PAXG collateral on @0xfluid for ~4.5% Next, we'll look at where to borrow against Gold...

1) @MorphoLabs I love morpho and am currently using it for my own gold farming. Pros: ⇒ Highest LLTV at 77% ⇒ 5% borrow cost ⇒ Only large EVM market with both PAXG and XAUT Cons: ➢ Thin liquidity compared to Aave ➢ Isolated margin (could be a pro?)

2) @aave Aave has XAUT Pros: ➢ Borrow USDC, USDT, USDe between 3-6% ➢ Billions to borrow on mainnet (no one else compares) ➢ It's Aave ➢ Deep liquidity on Plasma and Ethereum ➢ Cross margin Con: ➢ 75% LLTV slightly lower than Morpho ➢ No PAXG unless I'm blind

NOW, for yields, the math is simple. LTV * (stablecoinYield - borrowCost) Example: ➢ 50% LTV ➢ 4% Borrow Cost ➢ 20% APR on Stables (Pendle is my go-to) 0.5(20%-4%) = 8% net APR on your gold. Pretty dang good for a gold yield

Don't forget liquidations! ► Drawdown to liquidation = 1-(LTV/LLTV) ► Liquidation price = price*(LTV/LLTV) Ex: • Gold: $4200 • LTV: 50% • LLTV: 75% Drawdown to liquidation = 1-(.5/.75) = 33% Liquidation price = $4200*(0.5/0.75) = $2800

SO, what are some good ways to farm this and their net APRs? Assume borrow at 5% and 50% LTV. 1) XAUT | PT-AIDaUSDC: 12.5% (med risk) 2) XAUT | syrupUSDT Loop: 13.5% (higher risk) 3) XAUT | Simple Lend-Agg SummerFi: 3% (low risk)