Overview
AirPuff lending pools play a crucial role in supporting Airdrop / Points farming strategies by providing essential capital for leveragoors. In the initial stage of AirPuff, 6 types of lending pools will be available: ETH, stETH, ARB, USDT, USDC, and USDC.e lending pools.
Lending pools will cater to points / airdrop farming across all protocols we integrated. For pools beside from ETH and stETH, the lending capital will be swapped into ETH (or stETH, depending on the underling protocol), to combine with leverage users deposits to mint / swap corresponding tokens.
Mechanism
Participants engaging with AirPuff's lending platform benefit from hourly lending interest following a non-rebase model, aligning with the ERC-4626 standard. This model ensures a progressive increase in the lending token price over time.
Leverage users deposit collateral and choose their leverage size to request lending capital.
AirPuff matches the borrowing request, ensuring sufficient liquidity in the lending pool.
Borrowed capital combines with the deposited collateral to mint / swap the corresponding tokens.
Lenders receive a stable interest rate, with value accruing into each lending token.
Features
Protective Nature: Continuous monitoring of each leveraged position's Debt-to-Value ratio ensures prompt triggering of the liquidation threshold, prioritizing the protection of lending principals.
Stable and Higher-than-Market Rate Real Yield: Lenders are compensated with a stable and higher-than-market interest rate due to the engagement in high-risk speculative activities related to points yield.
Hourly Yield Compounding: Interests are distributed into the value of lending tokens on an hourly basis, allowing for effective compounding of yields, rather than simple interest rates.
Points Sharing: Lenders in AirPuff receive 10% of the points generated by leveraged activities, offering a blend of high and stable returns along with the potential for airdrop earnings. This allows lenders to gain points through various assets, including stablecoins.
Buffs eligible for the 10% points sharing will be evaluated individually to safeguard lenders against potential risks.
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