Strategy: Land Borrow Farm V2
(Uniswap v3 / Panckeswap V3 )
Overview
The PCS3 strategy leverages the Venus and PancakeSwapV3 protocols to maximise returns for its users. In essence, the PCS3 strategy follows a multi-step process that involves liquidity management, lending and borrowing required tokens, and participating in PancakeSwapV3 liquidity pools and farming. The ultimate objective is to earn rewards and distribute them to users in the form of BLID tokens.
Smart Contracts
Behind each PCS3 strategy, there are the following set of smart contract:
Logic. Defines all methods to operate with Venus and PancakeSwapV3 protocols
Strategy. Provides methods to manage the strategy
PairManager. Provides methods to manage the strategy pairs
Pairs
PCS3 defines pairs as a strategy setting in order to properly manage liquidity on PancakeSwapV3 pools. Each pair is structured as follows:
To obtain a comprehensive list of pairs, users can query the getPairs method of the PairManager contract. You can refer to an example of these pairs here: https://bscscan.com/address/0x4753E0a12e8a997ce24A03F045AD3B6b921B5270#readProxyContract#F1.
Tasks
To support the entire process, the PCS3 strategy relies on a set of Gelato automation tasks.
Supply Task
The Supply Task is executed when there is available liquidity on Multilogic that can be utilised by the strategy. This task involves the transfer of tokens, which are subsequently provided to the Venus protocol.
Example transaction: https://bscscan.com/tx/0xfb939f888f3b3354130b9feb1ebc719049880d3c655891430249842db19e30b0
Venus Rebalance Task
The Venus Rebalance Task comes into play when the strategy needs to borrow or repay tokens within the Venus protocol to maintain a balanced collateral position. The PCS3 strategy operates with the aim of borrowing as many tokens as possible while maintaining a safe distance from the liquidation point. There are two types of Venus Rebalance Task: build and destroy.
Build Venus Rebalance Task
During build routine the strategy:
calculates amount of tokens to be borrowed on Venus and provided to PancakeSwapV3 then
borrow tokens on Venus
provide liquidity to PancakeSwapV3 staking and farming
Example transaction: https://bscscan.com/tx/0x8ac99305fcc3d33d8e80a83a6ef702d18bf344dcdc6bfaa203f749fb62661971 Example of portfolio after build task:
Destroy Venus Rebalance Task
During destroy routine the strategy:
calculates amount of tokens to be removed from PancakeSwapV3 and repaid on Venus
remove liquidity from PancakeSwapV3
repay released tokens on Venus
PancakeSwap Rebalance Task
The PancakeSwap Rebalance Task is executed when the price relationship between the strategy's staked tokens on PancakeSwapV3 experiences significant fluctuations. Each pair within the strategy defines a specific price range for liquidity provision, along with a price change threshold. If the price between tokens deviates beyond the predefined threshold, this task is initiated. During this process, PCS3 temporarily removes liquidity from farming and staking, rebalances token holdings, and put tokens into a new position.
Example transaction: https://bscscan.com/tx/0x5d78aeab6768baa2efd354b24e619408376ce261cd6ba5b849686cd9015683d5
Rewards Distribution
PCS3 earns rewards in the form of XVS tokens from Venus and CAKE tokens from PancakeSwapV3 farming. Additionally, the strategy earns swap fees as a liquidity provider. A substantial portion of these rewards is converted into BLID tokens and subsequently distributed to our users.
Example transaction: https://bscscan.com/tx/0x697b0bb8a585c7a1a47089b6221cba8fac8cedae40f399b29ff4b7d1a593fdb7
Last updated