Elemental USDG lend vault on Kamino has averaged ~8% APY over the past 30 days the DeFi dollar benchmark rate averaged ~2.8% over the same period per @AllezLabs post Drift, the question everyone's asking about lending vaults is where is the yield coming from and what am I actually exposed to interestingly, this pool allocates solely to the OnRe Market that means two things: - the collateral risk you're underwriting is exposure to $ONyc - you are not exposed to unrelated assets across multiple pools while this brings concentration risk, it conversely eliminates contagion risk with the pool being entirely isolated from others the OnRe market looks compelling for stable allocation for several reasons: - NAV-based oracles protect LTVs during panic selling - low max leverage + wide 10% liquidation LTV window - ONyc price is tied to booked profit + proof of reserves, not speculative future profits - reinsurance premium losses hit APY rather than NAV you can always check where lend vaults on Kamino allocate via the allocation panel per vault - learning to assess risk rather than chase the highest APYs is an essential skill in DeFI
