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Leverage Lending DeFi Strategy
The Bolide team created an approach that simplifies the usually complex process of Leverage Lending algorithms for users without deep technical knowledge.
By doing so, users can now take advantage of powerful algorithms that they would not have been able to do before.
- 1.User: The user invests stablecoins (USDT, USDC, DAI, BUSD) or ETH, BTC into the Vaults.
- 2.Bolide: Funds are allocated to the lending platform (dForce, Venus, etc.) to secure initial users' liquidity.
- 3.Bolide: The user's assets are put up as collateral with a specified leverage ratio.
- 4.Bolide: The smart contract uses these assets and deposits them into the lending protocols and borrows against them as collateral, repeating this process multiple times.
- 5.Bolide: Constant monitoring of the liquidation factor is done to remove the risk of liquidation.
- 1.Bolide: Bolide harvests all rewards: Leveraged Lending interest, DeFi platform fees, and additional incentives.
- 2.Bolide: Bolide repay the dept by using a part of harvested rewards
- 3.Bolide: Bolide buyback $BLID tokens. Bolide swaps the rest part of the rewards to $BLID on DEXes.
- 4.Bolide: Bolide distributes the rewards to Users based on the amount of the user's deposit (if a user deposits assets after the last Harvest time, then Bolide uses the user's deposit time to calculate rewards).
- 5.User: Gained Bolide tokens ($BLID) are transferred to the user as profit from the Leverage Lending Strategy.
- 6.User: The next step is for the user to be able to deposit Bolide ($BLID) tokens and earn additional profit or sell Bolide ($BLID) at DEXes.
- 1.User: User wants to withdraw everything or just a part of their assets.
- 2.Bolide: Bolide checks if there are enough tokens on the Storage contract (check the Contract Architecture section here).
- If tokens are enough, Bolide withdraws assets and all $BLID rewards to the user's wallet.
- If tokens are not enough
a. Bolide initiates a process of releasing assets from the Lending pools (in this case, transaction costs may be higher due to many internal transactions).
b. Bolide withdraws assets and all $BLID rewards to the user's wallet.