This week I’ll be taking a closer look at:

Let’s jump in.

This week’s a bit of a mixed bag of things I’m interested in. I’ll keep it brief and include links if you want to dig deeper.

3Jane’s Levered Callable Capital has been breaking my brain since I first heard about it. It’s an interesting way for 3Jane to line up capital before it needs it. But I wanted to understand what I’d actually be signing up for as a user.

The basic idea is that you earn fees for promising to supply USDC when called, while posting only a portion upfront. Most of your capital can stay elsewhere until it’s needed.

What really caught my eye was the headline 41.43% APY 👀

How would I use it?

Here’s a smaller Promise Looping example:

So I’m initially depositing $7,500, but committing to a much larger position. The remaining $42,500 can stay elsewhere until called, provided I can access it in time.

What does the yield look like?

The screenshot shows 41.43% APY, but that applies to the $7,500 posted margin. Here’s how the components roughly break down:

The Aave figure is my estimate worked backwards from the displayed total, so that may not be exactly accurate.

Against the full $50,000 I’d be setting aside, the displayed yield is equivalent to roughly 6.2% annualized, plus anything earned elsewhere on the remaining $42,500.

That’s only before I’m called. It also includes the temporary incentive ending November 24, 2026, at 00:00 UTC, so I wouldn’t expect that rate to last a full year. Unless they continue the incentive of course.

Once called, I’d need to compare what the funded USD3 position earns with what the $50,000 Morpho loan costs. The screenshot doesn’t tell me that net return.

Here are some items that are worth pointing out

When I first looked at the promise loop I was like “sweet so I get a loan from Morpho?” Then I quickly realized that the Morpho borrowing isn’t guaranteed, but your funding obligation still is. In other words, you could find yourself in a scenario where there’s no liquidity on Morpho and you’re still on the hook to meet your call. So use leverage wisely as always.

If you’re called, you have nine days to come up with the money. If the $50,000 Morpho loan isn’t available, you’re still on the hook for the full $100,000. So you could need more of your own money than you planned.

Missing the call puts your margin into a backstop auction, and you could lose all of it.

There are some exit constraints too. After funding a call, the position has a 35 day cooldown, with redemption afterward still subject to liquidity and restrictions. Unstaking from LCC takes at least 42 days at launch, and your obligations continue during that process.

Add in floating borrowing costs, liquidation risk (which I didn’t really cover here) and the underlying credit exposure, and there’s quite a bit to understand. The LCC docs go deeper into the mechanics and risks.

There’s a lot to consider here, but let me be clear, I think it’s a really clever design. And just really cool innovation to see in DeFi in general. Part of me really wants to start doing something here as I see onchain credit being an important new primitive.

In addition to what I laid out above, this thread from the team is really helpful too:

The founder of Ammalgam is a really sharp guy and I think he created something interesting with Ammalgam. Essentially combining lending with a Dex, in a similiar vein to what Fluid did, but a different flavor/approach.

I saw just the other day they shipped something called Capital Release and I thought it was quite useful and clever.

I unrolled their X post where they walked through an example that helped make it click:

If you want to see the original X post it’s here below:

I’m pretty interested in agentic trading from here on out. I’m seeing more an more of it popping up again, but this time it looks like less of a toy and closer to the real thing. The INFINIT team recently became a sponsor of The Edge Podcast and are doing some really interesting things in this space.

Their two new APEX vaults are open for deposit until November 11th. I just deposited $100 in each as I want to be able to track performance myself first hand:

Their first Multi Strategy vault shown in the image above absolutely crushed it. These two new vaults will both follow the same strategies as their first vault with one being 30 days and the other being 90 days.

For more info you can follow through this thread:

Of course with all of this make sure you do your own due diligence, read the docs and know the risks.

If you read this newsletter, you know I’m a fan of what the Metric team are bringing to the LP space. If you’re not up to speed, I an article two weeks ago you should check out called: Is Metric The Biggest Opportunity Since Hyperliquid?

I had been asking the team a bit about how they were showing their APRs and they mentioned an update was coming. It’s nice to see the transparency here:

We followed InfiniFi a lot in this newsletter over the past ~1 year so I wanted to throw it on your radar that they’ve just launched their airdrop registration.

Also, it appears to be a fairly tight registration window as it closes November 10th. So make sure you act now if you used InfiniFi and would like an airdrop.

Full details are here:

7 day benchmark stablecoin rates from Portals: 4.68%:

Here’s the top yields on stablecoins (real yields) for the past 30 days:

7 day benchmark ETH staking rates from Portals: 2.45%

Here’s the top yields on ETH & BTC (real yields) for the past 30 days:

Here’s a snapshot of the front page of looping this week from yieldz.io (30d APY):

Taking a look at the front page of Stablecoin yields and RWA yields this week on Pendle:

Stablecoins

RWA

Thanks for reading!

DISCLAIMER: Nothing written in The Edge Newsletter or said on The Edge Podcast is a recommendation to buy or sell tokens or securities. This content is for educational and entertainment purposes only. Nothing shared here is financial advice. Any views expressed in our content are solely the opinion of that writer, host, or guest. Always do your own research. DeFi Dad, Nomatic, and guests may have positions in the assets or other matters discussed in this content.