As you now when you stking APT on tortuga you have APY on 7% lv but when you use this option discribe below you can increse APY to 18-20 %
- Deposit 10 $APT in Tortuga to receive 10 $tAPT, earning 7% APY
- Deposit 10 $tAPT into Aries Markets to earn $tAPT variable yield
- Borrow 6 APT from Aries Markets (minute buffer for 65% LTV; note that users will pay borrowing interest on $APT)
- Stake the borrowed 6 APT into Tortuga again to receive 6 $tAPT, earning 7%
- Deposit 6 $tAPT into Aries Markets…
- …and repeat this process several times to gain leveraged exposure to $tAPT and maximize yield generation
Maximizing at ~60% LTV (note risks below) produces a ~2.8x exposure to $tAPT — this results in an estimated 18–20% APY from staking $APT, before factoring in deposit and borrowing yield from Aries Markets.
OF COURSE REMEMBER ABOUT RISK
When users interact with Tortuga and Aries Markets to execute such yield strategies, users are exposed to smart contract risks on both of these platforms. This is applicable to any DeFi platform and interaction. Security is our top priority at Aries Markets and we extend the same level of scrutiny for any of our dedicated partners, such as Tortuga. Aries Markets is audited by OtterSec, and Tortuga is audited by OtterSec and Zellic.
Loan-to-Value (LTV) ratio is a key parameter for users to pay attention to. The LTV of $tAPT on Aries Markets is currently 65%. The maximum amount a user can borrow on Aries Markets is dependent on the value of their deposits, factored by each asset’s LTV, and based on the value of the loan, the account dictates a risk factor. Liquidation occurs for accounts that breach the threshold (risk factor greater than or equal to 100%), refer to Aries Markets Documentation for a detailed breakdown. Accounts that loan near their maximum LTV ratio will be at risk of liquidation if they do not manage price fluctuations well.