🔑-GUIDELINE
Last updated
Last updated
You can choose to be Lender, Yield Farmer, Liquidity Provider, Refueler, and Destroyer
👻We will use BNB as an example👻
In this part, we will clarify BNB lenders in detail. BNB lenders have to deposit BNB on the Space system in order to get high borrowed interest APR back depending on the utilization rate.
Utilization Rate = Total Debt Issue / Total BNB Deposit x 100
0-50%, borrowing interest rate goes up linearly to 0-25%
50-90%, the borrowing interest rate is fixed at 25%
90-100%, the borrowing interest rate goes up linearly to 25-100%
The more BNB borrowed, the more borrowed interest rates will be.
BNB lenders have to deposit BNB on the Space system in order to get high borrowed interest APY back. Yield farmers (borrowers) are able to borrow BNB with the leverage up to 2.5x in order to farm on a supported PancakeSwap pool.
For example, users have;
BNB collateral: 100 BNB
Max borrow: 150 BNB
Total debt: 150 BNB
Position: 250 BNB
Max leverage: 2.5x
Users have to select which PancakeSwap pool to farm (UNI LINK, CAKE, BUSD, BTCB, ETH, USDT, DOT, and XVS). The borrowers’ interest rate will be transferred to Space. Yield farmers will get yields of max 2.5x position size. When farmers hold 2.5x of BNB (as an example), Space will swap BNB and another token to make your asset values equal (swap roughly half) depending on each pool farmers select. In this case, we will use USDT-WBNB as an example. Farmers have to add USDT-WBNB pool on PancakeSwap in order to get USDT_WBNB_CAKE-LP token and stake in USDT-WBNB Liquidity Mining pool to get CAKE token. Space system will reinvest for you by selling CAKE to BNB and repeat the process.
For the yield farmer process, users have to add another token of the supported pool and/or BNB to the Space system. You can borrow BNB from the Space pool depending on your leverage level. In this case, we will use 5 BNB as an example. When users have 5 BNB from the leverage, Space will swap the token (to be BNB and another token) to make your asset values equal to supply to the liquidity-providing pool. You will get an LP token and have to stake in a liquidity mining pool to get a farmed token.
Space system will reinvest for you by selling farmed tokens to BNB and repeat the process and increase your yield farming position value.
APR in this pool comes from yield farming on leverage + reinvestment of farmed token + trading fees APR on leverage.
The destroyer can destroy the position and receive a destructive bonus which is 5% of the position value. The position will be destroyed when total debt exceeds the terminator (see the terminator rate at Space key parameters). The least of the position's BNB after paying back the debt will be transferred back to the position owner.
Users can call a refuel function to sell all yield farmed tokens for BNB, and reinvest into the yield farming pool, earning 3% of the total rewards in the process. Refueler must pay for a gas fee every time they press ‘refuel’
