ALP Leverage - GIN
ALP Leverage has features of:
Multiplied rewards from ALP in terms of real yield
Additional CAKE rewards from restaking ALP in Pancakeswap
Dynamic reward split mechanism that users pay the leverage cost only when they gain
Approach
ALP itself can be minted with multiple assets, including volatile assets like BTC, ETH, etc. Hence, the price of ALP itself will be volatile due to its basket-of-asset nature.
In the ALP Leverage Vault, users deposit USDC.e and leveraging will be achieved through borrowing extra funding from USDC.e Lending Pool at the cost of reward splitting
ALP minted will be then be staked in Pancake Swap Syrup Pools to earn extra CAKE rewards, such that users can claim their leveraged CAKE rewards on Vaultka's page.
Workflow
Step 1: Users input the deposit amount and choose the desired leverage level (up to 10x).
Step 2: The additional capital required for the leverage strategy is borrowed from the USDC.e lending pool.
Step 3: The borrowed USDC.e is combined with the deposited USDC.e in the ALP Leverage strategy to mint the corresponding ALP tokens on ApolloX.
Step 4: The "Debt-to-Value (DTV) Monitor" and "Liquidation Monitor" continuously monitor the health of the strategy.
Step 5: When the leveraged positions are closed, the rewards are split to the Redistributor, which is a protocol-owned middleman contract that facilitates the distribution of rewards to USDC.e Lending Pool. See here for more details.
Features
Unique Reward Split Mechanism
Leveraged position borrowers benefit from a zero-borrowing interest rate, and the Reward split occurs only when their closed positions have positive earnings. This mechanism ensures lenders' profitability while safeguarding the interests of borrowers.
Flexible Leverage
Users can employ flexible leverage (up to 10x) based on the amount they deposit in the Sake vault. The โManagerโ will check the availability of the lending vault and match the leverage amount to mint ALP.
Harvestable Reward
For Leverage users, ALP CAKE rewards are harvested by the protocol whenever a user opens/closes a position, or every 24 hours. Rewards can be claimed from the Vaultka page
The userโs harvestable reward will already be deducted from the reward split for lenders
For Lenders, rewards are distributed whenever it is harvested
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