How does AirPuff Work
AirPuff caters to two distinct user types, each with unique preferences and objectives.
Lenders:
For users who prioritize immediate and stable returns over speculation on airdrops or points, AirPuff offers a "Lending" option. These participants have the option to lend out their capital, gaining access to additional rewards (Average ~20% lending APR), providing a seamless avenue for those who prioritize tangible returns.
Leverage Airdrop Farmers:
On the other end of the spectrum are users bullish on airdrops or points. AirPuff enables them to engage in under-collateralized leverage, empowering them to speculate on the value of airdrops or points. This feature appeals to those seeking to capitalize on the potential appreciation of airdrop assets, offering a dynamic and speculative dimension to the platform.
Key Features
Under-Collateralized Leverage: Empower leverage enthusiasts to strategically position themselves for speculation on airdrop and point values without the need for excessive collateral.
User-Friendly and Competitive Borrowing Rates: AirPuff stands out with its simple and fair interest rate model, offering an optimal balance of risk and reward without the complexity.
Sustainable Lending Yield: Implement a stable interest rate for leveragers, offering lenders a sustainable, low-risk, and high-yield alternative. This dual benefit ensures a balanced and rewarding experience for both user types.
Zero Real Fees: AirPuff adopts a Zero Interest Rate Spread policy, ensuring no fees are collected by the protocol between borrowers and lenders. This approach fosters a more equitable and advantageous environment for all users.
Inclusive Points Farming with Stablecoins: By enabling stablecoin deposits and loans, AirPuff expands the points farming opportunity beyond ETH holders. This approach allows for more diversified strategies, including leveraging stablecoins to take long positions on ETH, thus amplifying potential rewards.
Shared Points Rewards: Both lenders and veAPUFF holders benefit from a portion of the points collected by borrowers—10% and 5% respectively—merging the advantages of high-yield lending with the rewards of airdrop farming.
Expansion Possibilities: Positioned at the forefront of the evolving DeFi landscape, AirPuff has the flexibility to adapt and grow. With the increasing trend of leading projects conducting their airdrop programs, AirPuff holds infinite possibilities for expanding its coverage, ensuring ongoing relevance and value for its users.
AI-Empowered Strategies: AirPuff harnesses AI technology to pinpoint the most promising and profitable airdrop opportunities for our users. By analyzing market trends, our AI enables users to adopt the best strategic positions—whether long or neutral—to maximize their airdrop earnings.
Mechanism Overview
Lending: Lenders contribute lending capital to the AirPuff to earn a stable interest rate on their deposits.
Leveraging: Leveragers have the flexibility to choose their desired leverage size (up to 15x) and deposit the corresponding collateral into the system.
Token Minting: AirPuff combines the borrowed capital and user deposits to mint the protocol token (In our first strategy, it will be LRT)), representing leveraged positions within the ecosystem.
Interest Compensation: Leveragers pay a stable interest rate and point split to lenders as compensation for utilizing their funds to amplify their positions. This ensures a fair and mutually beneficial relationship between lenders and leveragers.
Last updated