Bigfoot… The next step for Eleven Finance
Eleven Finance is still a relative newcomer to the Binance Smart Chain (BSC), but in our limited lifespan, we feel we are well on our way to delivering on our mission. That of building a fast moving, community driven, high APY vault ecosystem with a wide selection of supported assets. However, this is not enough for us…
Do you hear the footsteps coming…
As many of our community members would be aware, our developer team has been keen on adding further value to our platform and for our users from day one of the project. Today we are proud to formally launch Bigfoot, the next step for Eleven Finance.
The Bigfoot platform will allow for leveraged yield farming, utilising our network of our existing Eleven Finance vaults. This will allow for users to harness borrowing (known as leverage) and gain exposure to the upside of even larger yields on BSC. Additionally lenders will be able to provide assets to the platform (initially BNB) to be used for borrowing with attractive interest rates and other farming rewards.
How Bigfoot works
Bigfoot will utilise the Bigfoot Bank BNB contract. This will allow lenders to stake BNB in the contract, in return they will receive bfBNB, an interest bearing BNB equivalent. This interest will be generated from fees charged to borrowers and will be explained in more detail later on.
Additionally as further incentive to lenders, bfBNB will be able to be staked within our ‘Elevenchef’ (Masterchef equivalent) contract where in addition to earning the interest mentioned above, it will also earn our native ELE token as part of our farming rewards. We feel this single asset staking with exposure to yield is an attractive proposition to all BNB holders on Binance Smart Chain.
On the flip side, borrowers on the Bigfoot platform are those who will put up collateral (initially this will be either BNB or 11CAKEBNB) in order to lend additional assets (initially 11CAKEBNB). This allows them to ‘leverage up’ their exposure to a given yield farm.
An example might be the easiest way to explain how this works:
Alice holds BNB and wants to ‘put it to work’ for her in order to maximise yield and is aware of the risks that come with this. Using our the Bigfoot platform, powered by Eleven Finance, the process is quite simple.
Alice comes to bigfoot.eleven.finance . She decides she would like to ‘leverage up’ her exposure to the BNB/CAKE liquidity pool pair, allowing Bigfoot to farm for her with this increased leverage.
Using the platform she selects this pair and her desired amount of leverage (and therefore risk) from the dashboard page. This tells the contract to borrow the additional BNB she needs in addition to her collateral (in her case it’s BNB) from the Bigfoot bank. Here she deposits her BNB as collateral and the contracts take care of the additional borrowing position (as BNB is borrowed from the Bigfoot Bank).
The Bigfoot contract then converts all this BNB into 11CAKEBNB. It does this using 50% of the BNB to purchase CAKE, then adding liquidity to PancakeSwap for this pair, then depositing these LP tokens into the relevant Eleven Finance vault, in this case 11CAKEBNB.
From here, there is no more action required by Alice, she can monitor her position and see her LP rewards grow, through autocompounding of rewards being sold, additional LP tokens bought and re-staked.
All these compounded rewards result in additional value of Alice’s LPs. As this value grows, Alice’s lending and therefore liquidation risk can be reduced.
However the opportunity for gains don’t stop here. The Bigfoot contract goes to work further for Alice, by staking her 11CAKEBNB tokens, in the ‘Elevenchef’ contract. This earns ELE, which is distributed to Alice as E11 — the staked form of ELE that earns platform fees, meaning more gains for Alice.
So to summarise this example lets say the 11CAKEBNB vault is rewarding at rates of 153.82% APY, if Alice opens a position with 2.5x leverage, the APY for her position would be ~ 462%. In addition to this she is also earning E11, which further add to her gains.
At any time Alice can withdraw from the system, where she would pay any relevant fees/interest, pay back her borrowed BNB and receive the remaining BNB she is entitled to (which will be inclusive of compounded LP rewards, minus 0.1% vault withdrawal fee).
Fees and distribution of these
Interest rates across the platform as managed through a flexible rate. This incentivises lenders during times of high amounts of borrowing (by increasing the rate) and incentivises borrowing during the opposite time (by reducing the rate). We have a targeted a rate of 10% for borrowing, with this model. Using this rate as an example, lenders will get a 8.9% lending rate on the interest bearing BNB (bfBNB). The remaining 1.1% is distributed through the ELE ecoystem, through buyback and burns of ELE and team/developer fees.
The Bigfoot platform will launch in stages, with the initial phase being that of lenders lending BNB to the Bigfoot Bank, to build liquidity for the platform to operate effectively. Early BNB stakers to the Bigfoot Bank, will be able to access boosted ELE rewards through the Elevenchef farming contract.
Following this and the building of liquidity. And where we are now, is that a select number of LP Pairs eligible for use on Bigfoot (11CAKEBNB only for now), with our plan to grow the number of these vaults over time to allow more and more BSC users access to leveraged yield farming.
We’d love to hear from you, answer any questions you may have or help you out in any way. Reach out to us through any of the following channels: