AfroChain Labs

A collective bringing the power of the blockchain to empower the African Continent #NFT #DeFi #Ethereum #Bitcoin

[AfroChain Labs @AfroChainLabs]

Check this out @nickazinge3 @CrudeMarkets. This is the derivatives protocol, was pitching.

[Nick ☀️ @NickOnChain]

10/ This was a high level overview happy to answer any questions and go into more detail about it. Will say I think leveraged yield farming should be used my more advances users and obviously adds a significant amount of risk. As always not financial advice and DYOR.

[Nick ☀️ @NickOnChain]

9/ Leveraged Yield Farming isn’t new, many individuals already employ these strategies by utilizing the different DeFi lending protocols. These projects simply the process. So kudos to @AlphaFinanceLab, and excited to see what @kalmar_io brings to the table. #BSC #Binance

[Nick ☀️ @NickOnChain]

8/ Bounty Hunters, individuals who come on the platform and reinvest the farmed yield tokens. In return receive 0.3% of the farmed tokens. eg. Going to AH, hit reinvest on different farms. Need to make sure the 0.3% collected justifies gas fees associated with the transaction.

[Nick ☀️ @NickOnChain]

7/ Liquidators, individuals who come on and liquidate positions that have exceeded the debt ratio. In return the they keep 1% of the to the position value. They need to make sure the 1% collected justifies the gas fees associated and can assume this would be very competitive.

[Nick ☀️ @NickOnChain]

6/ Next you have the lenders, who supply the BNB Yield farmers can borrow. In return are compensated with interest. The interest rate is determined by a utilization Ratio(amount of BNB Borrowed/amount of BNB Available). Lenders rate based on the triple-slope interest rate curve.

[Nick ☀️ @NickOnChain]

5/ For example Yield Farmer A has 1 $BNB, and wants to supply to a pool with 30% APY. A can borrow 1.5 BNB from AH Bank, and achieve an APY of 75% APY. A has to keep in mind the borrowing rate and has to keep in mind the DebtRatio(the balance needed to avoid liquidation)

[Nick ☀️ @NickOnChain]

4/ Yield Farmers, AH behaves as a yield aggregator allowing farmers to stake their tokens on various farms. AH has a Zap feature where you can provide 1 token and they’ll handle the rest. YF on AH have the ability to leverage up to 3x.

[Nick ☀️ @NickOnChain]

3/ AH I believe might be one of the first platforms to do this on #Ethereum and now are also on #BSC. There are three different types of users on the platform, Yield Farmers, BNB Lenders, Liquidators, Bounty Hunters.

[Nick ☀️ @NickOnChain]

2/ Leveraged yield farming as the name implies, allows yield farmers to lever up their position. eg They start with 1 BNB, and borrow additional BNB. And end up with more BNB to farm with, thus allowing them to collect more rewards.They pay an interest rate on the borrowed $BNB

[Nick ☀️ @NickOnChain]

1/ With @kalmar_io looking to launch soon, I thought I would do a quick thread about leveraged yield farming using @AlphaFinanceLab platform Alpha Homora(AH) as an example #BSC #BinanceSmartChain $ALPHA

[AfroChain Labs @AfroChainLabs]

@autofarmnetwork We love being a part of the community

[AfroChain Labs @AfroChainLabs]

@cz_binance @binance $AUTO has over $1B TVL

[autofarm.network @autofarmnetwork]

Have your CAKE and eat it too! 🥞

[AfroChain Labs @AfroChainLabs]

Imagine when celebrities start leveraging social tokens to give holders exclusive access into their lives. #NFTs #NFT

[AfroChain Labs @AfroChainLabs]

Blows my mind and it’s catching on. Look at every farm or protocol that offers stablecoin pairs. Money is running to them.

[AfroChain Labs @AfroChainLabs]

The fact you can park stablecoins with not too much risk and yield over 8% is a completely game changer.

[AfroChain Labs @AfroChainLabs]

Treasury yield is 1.6% which is good enough for a lot as you can see with the rotation happening in the market. Back to the stablecoins they are literally yielding 8% or more with again not as much risk.