How does CCS Wealth achieve such high earnings for Crypto Bond holders?

How We Arbitrage?

Interest Rate Arbitrage allows CCS Wealth to profit on the interest rate inefficiencies between two DeFi lending or staking platforms. It is a very low risk way to create profit.

With interest rate arbitrage, funds in a stable coin are borrowed at a lower APY (annual percentage yield) then exchanged to another stable coin with a higher APY, the latter cryptocurrency is then used to lend funds to others.

The interest rate margin between the borrowing side and the lending side is where we make our profit.


D.R.E. Arbitrage Example

We arbitrage lending and borrowing rates between assets across DeFi Protocols.

  • On a DeFi lending platform, DAI’s borrowing APY is 5%, while USDC’s lending APY is 10% (both are USD-pegged stable coins).
  • We deposit USDC to the platform and use it as collateral to borrow DAI.
  • After that, we exchange our DAI back to USDC.
  • As the final step, we lend the USDC to others to make a profit on a 5% spread between the two coin’s APYs

This strategy can be deployed on single or multiple DeFi lending protocols.