spotted this new oracle section by @Morpho in our new PT-USD3 / USDT market by @flowdesk_co thank you to the morpho team for making oracle reading more intuitive for all users

here's why this works at scale: there's > $10b of stablecoin supply-side liquidity on-chain by taking on debt to fund capital calls, you're effectively generating commitment fees off a global balance sheet of supply-side liquidity

ex: post $7.5 initial margin (aave usdc), to back $100 commitment hold $25 in reserve (monad aave usdc), knowing that either: a) expected max call is only $25 over full commitment period b) can lever USD3 4x to cover full commitment APY before LCC: 5.6% APY after LCC: 9.5%

net 9.5% APY starting w/ @aave usdc pt 2 of a series on LCC, showcasing the power of running your own shadow bank

3/ in LCC, you're the insurer 3jane (the buyer) pays you a premium for promising to fund usd3 if ever called you hold reserves to fund the promise

2/ the simplest analogy: comparing LCC to insurance an insurer collects a premium from insurance buyers for promising to pay if a claim ever comes in the meantime, they hold idle reserves to pay claims

1/ LCC pays you on money you've promised but haven't handed over yet you post a small amount of margin and earn yield on a much bigger number standing behind it

your usdc earns ~3.5% on @aave with levered callable capital (LCC), the same deposit earns ~20% pt 1 of a series on LCC, starting with an explanation of the mechanics

rates have been elevated for some time get senior exposure to receivables financing along with $JANE incentives : o

for 3jane enjoyers, yvUSD has ~ 20% allocated into lending against USD3 meaning it gets $JANE rewards & you can leverage up ~ 10x on this exposure through @flexmeow while accessing fixed rates

47% net APY + $JANE $2m left to kink (though borrow rates have been varying heavily)