Thread by Olasuky || clarity
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- Apr 12, 2023
- #DecentralizedFinance
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As the Arbitrum ecosystem continues to develop ,
@LodestarFinance aims to bring the critical $DeFi primitive of decentralized money markets to Arbitrum communities. $Lode
A Thread🧵 📌
@LodestarFinance aims to bring the critical $DeFi primitive of decentralized money markets to Arbitrum communities. $Lode
A Thread🧵 📌
1/x
@LodestarFinance is an algorithmic borrowing and lending protocol initially built and launched on the #Arbitrum ecosystem.
Allowing users can earn interest on arbitrage assets like MAGIC, DPX, and plvGLP by supplying them to the protocol.
@LodestarFinance is an algorithmic borrowing and lending protocol initially built and launched on the #Arbitrum ecosystem.
Allowing users can earn interest on arbitrage assets like MAGIC, DPX, and plvGLP by supplying them to the protocol.
2/x
Borrowing assets enables users to access liquidity without creating a taxable event and also choose to perform any of the two common financial strategies called leveraged long or short trading.
Borrowing assets enables users to access liquidity without creating a taxable event and also choose to perform any of the two common financial strategies called leveraged long or short trading.
3/x
$plvGLP is a special asset offered in Lodestar that uses the Plutus Vault architecture to bring amazing potential to Lodestar Finance.
$plvGLP is a special asset offered in Lodestar that uses the Plutus Vault architecture to bring amazing potential to Lodestar Finance.
4/x
$plvGLP is acquired by depositing GLP into Plutus’ Vault contract, and as more GLP is added to the total assets held by the Vault, the exchange rate for GLP/plvGLP increases.
$plvGLP is acquired by depositing GLP into Plutus’ Vault contract, and as more GLP is added to the total assets held by the Vault, the exchange rate for GLP/plvGLP increases.
5/x
The Plutus Vaults are products built on top of existing, successful protocols with the sole purpose of enhancing yield and simplifying the process for end users.
The Plutus Vaults are products built on top of existing, successful protocols with the sole purpose of enhancing yield and simplifying the process for end users.
6/x
Users who deposit funds can benefit from the perpetually increasing exchange rate between $plvGLP and GLP in addition to any supply-side interest earned.
Users who deposit funds can benefit from the perpetually increasing exchange rate between $plvGLP and GLP in addition to any supply-side interest earned.
7/x
Users can also deposit plvGLP as collateral to borrow a stablecoin such as $USDC and purchase more $plvGLP to leverage their position and get high returns. It is understandable that leveraged trading comes with high risks of liquidation.
Users can also deposit plvGLP as collateral to borrow a stablecoin such as $USDC and purchase more $plvGLP to leverage their position and get high returns. It is understandable that leveraged trading comes with high risks of liquidation.
8/x
The increase in this strategy will also create high demand for stablecoins, which in turn translates to increased supply rates for $USDC suppliers on Lodestar.
The increase in this strategy will also create high demand for stablecoins, which in turn translates to increased supply rates for $USDC suppliers on Lodestar.
9/x
Users can purchase any amount of $plvGLP and then deposit it into Lodestar. It allows users to borrow up to 80% of the value of their purchase, and the initial deposit will be used as collateral.
Users can purchase any amount of $plvGLP and then deposit it into Lodestar. It allows users to borrow up to 80% of the value of their purchase, and the initial deposit will be used as collateral.
10/x
@LodestarFinance aims to unlock the full potential of the crypto assets without sacrificing the underlying yield.
@LodestarFinance aims to unlock the full potential of the crypto assets without sacrificing the underlying yield.
11/x
@LodestarFinance will allow users to seamlessly access and interact with multiple $DeFi products.
It also tackles the scalability and liquidity issues that are currently big issues in the $Defi ecosystem.
@LodestarFinance will allow users to seamlessly access and interact with multiple $DeFi products.
It also tackles the scalability and liquidity issues that are currently big issues in the $Defi ecosystem.
12/x
@LodestarFinance also partnered with @FactorDAO , allowing Lodestar yield-bearing derivatives to be integrated into the Factor Vaults.
@LodestarFinance also partnered with @FactorDAO , allowing Lodestar yield-bearing derivatives to be integrated into the Factor Vaults.
13/x
Instead of users having to create their own strategies, an end-user can simply deposit a single asset (like $USDC) into the $plvGLP vault.
Instead of users having to create their own strategies, an end-user can simply deposit a single asset (like $USDC) into the $plvGLP vault.
14/x
The protocol will then automatically mint and deposit plvGLP as collateral on Lodestar Finance while also borrowing other assets at the right GLP ratio to loop it back into $plvGLP.
The protocol will then automatically mint and deposit plvGLP as collateral on Lodestar Finance while also borrowing other assets at the right GLP ratio to loop it back into $plvGLP.
15/y
In conclusion, @LodestarFinance will bring the core features of $DeFi borrowing and lending to Arbitrum while also allowing PLV-GLP holders to borrow against their holdings on the Lodestar protocol.
In conclusion, @LodestarFinance will bring the core features of $DeFi borrowing and lending to Arbitrum while also allowing PLV-GLP holders to borrow against their holdings on the Lodestar protocol.
❤️ + Rt.
Follow for more Defi related updates.
Follow for more Defi related updates.
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Abhi @0xAbhiP
·
Apr 13, 2023
Great thread. Well structured.