A New Dawn: Leveraged Farming
Hello SolFarmers, a lot of you have been waiting for this release. Our team has been tirelessly working to improve the product since the Hackathon and today we are excited to launch SolFarm’s leveraged farming function on main-net.
The function consists of two parts: SolFarm Interest Reserves & Leveraged LP Positions.
Interest Reserves
SolFarm Interest Reserves allow users to deposit and earn an interest on their single asset deposit based on the usage of the platform. The higher the utilization rate, the higher the interest rate. We utilize a 3 slope interest curve to calculate lending interest. SolFarm takes 10% from any interest charges and the rest is distributed back to lenders. You can find more details here.
Leveraged LP Farming
SolFarmers will be able to open leveraged positions at 2x leverage at launch. Positions are capped with a lower bound of $100 notional ($50 notional deposit) and an upper bound of $100k notional ($50k notional deposit). The position limits are to ensure an orderly market and we will look to scale this along with leverage as reserves and liquidity on Solana grows.
On launch, we will have the following pairs available: RAY-USDT/RAY-USDC/RAY-SRM. We will be looking to add more pairs as we scale based on stability and load. For more details on the function, please review our Gitbook here.
Protocol Update
As the platform scales, costs associated do increase as well. Platform fees will be increased to 1.5% in total to compensate for this. Note that this fee is a performance fee and is charged on any compounding profit and not on principle/deposit/withdrawal.
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We are extremely proud of our progress and we invite all users to join us on the next evolution of SolFarm. Happy farming!
A guide to using the new functions can be found here.
About SolFarm
📧contact@solfarm.io
