3 Ways to Participate

How to participate in Camel Finance?

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Last updated 3 years ago

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3 Ways to Participate

How to participate in Camel Finance?

Joining our protocol, you can choose to be Lender, Farmer, or Liquidator.

💰Lender: Camel Finance allows you to earn safe and stable returns on your base assets by depositing them into our lending vaults. These assets are then offered to yield farmers for leveraging up their positions.

👨‍🌾 Farmer: As a farmer, you can borrow base assets from our lending vaults, allowing you to open a leveraged farming position, multiplying your farming APR by up to 9x(minus borrowing interest). Of course, these higher yields come with larger risks than lending: liquidation, impermanent loss, etc.

🚨 Liquidator: Monitors the pool for underwater leveraged farming positions (when equity collateral becomes too low, thus approaching risk of default) and liquidates them (Bots only).

We currently support the following base assets : MATIC, USDC, USDT, DAI, WETH, and WBTC. Our available leveraged farming is integrated with QuickSwap, SushiSwap, WaultSwap & Dfyn.

As the example below, we show how each participant works together in Camel Finance's ecosystem:

Lender (Alice) deposits her MATIC into Camel Finance's lending vault and receives ibMATIC: an interest-bearing asset representing her shares of MATIC in the lending vault. Her MATIC then becomes available for a yield farmer to borrow. Meanwhile, Alice ibMATIC accrues interest internally, which she can withdraw for more MATIC than the amount she deposited (representing principal MATIC + interest).
Farmer (Bob) wants to open a leveraged yield farming position on the MATIC pair; he borrows MATIC from the vault and enjoys higher yield farming rewards. Camel Finance’s smart contract takes care of all the mechanics behind the scenes : optimally switching assets to the right ratio, providing liquidity to the pool, and staking the LP tokens for QuickSwap Rewards.
Reinvestor(Caleb) reinvest into the pool every time there is an interaction with the contract (opening & closing positions, adding collateral maximizing the compounding effect.)
Liquidator Doris monitors the health of each leveraged position, and when it goes beyond designated parameters, she helps liquidate the position, making sure lenders such as Aaron do not lose their capital. For this service, she takes a 5% reward from the liquidated position.
In-house bot. At Camel, we also have an in-house bot for this.

PreviousTransaction takes too long in Polygon network NextStep-by-Step Guide

Last updated 3 years ago

Was this helpful?

Joining our protocol, you can choose to be Lender, Farmer, or Liquidator.

🚨 Liquidator: Monitors the pool for underwater leveraged farming positions (when equity collateral becomes too low, thus approaching risk of default) and liquidates them (Bots only).

We currently support the following base assets : MATIC, USDC, USDT, DAI, WETH, and WBTC. Our available leveraged farming is integrated with QuickSwap, SushiSwap, WaultSwap & Dfyn.

As the example below, we show how each participant works together in Camel Finance's ecosystem:

Lender (Alice) deposits her MATIC into Camel Finance's lending vault and receives ibMATIC: an interest-bearing asset representing her shares of MATIC in the lending vault. Her MATIC then becomes available for a yield farmer to borrow. Meanwhile, Alice ibMATIC accrues interest internally, which she can withdraw for more MATIC than the amount she deposited (representing principal MATIC + interest).
Farmer (Bob) wants to open a leveraged yield farming position on the MATIC pair; he borrows MATIC from the vault and enjoys higher yield farming rewards. Camel Finance’s smart contract takes care of all the mechanics behind the scenes : optimally switching assets to the right ratio, providing liquidity to the pool, and staking the LP tokens for QuickSwap Rewards.
Reinvestor(Caleb) reinvest into the pool every time there is an interaction with the contract (opening & closing positions, adding collateral maximizing the compounding effect.)
Liquidator Doris monitors the health of each leveraged position, and when it goes beyond designated parameters, she helps liquidate the position, making sure lenders such as Aaron do not lose their capital. For this service, she takes a 5% reward from the liquidated position.
In-house bot. At Camel, we also have an in-house bot for this.