ALP Leverage - GIN

ALP Leverage has features of:

  1. Multiplied rewards from ALP in terms of real yield

  2. Additional CAKE rewards from restaking ALP in Pancakeswap

  3. 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 β€œManager” 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 user’s 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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