BigfootUSD and Leveraged Stable Farming is here!
Our Bigfoot leveraged yield farming platform has been live for a while now, slowing gaining traction. A phased launch of this platform has always been the plan, but today we take this to the next level with the launch of BigfootUSD (bfUSD) and leveraged stablecoin yield farming.
Introduction to bfUSD
Stablecoins have enabled and revolutionised the defi landscape and enabled a wide range of new products and yield opportunities. Protocols like Nerve Finance have been developed to help maintain the stability (or peg) of these assists as well as provide a place to trade them with low slippage.
bfUSD is a pegged price asset used on the Bigfoot platform to power lending and borrowing, allowing for leveraged yield farming. It’s interest bearing, so lenders bringing stables to the platform can deposit USDT, UDSC or BUSD, in exchange for bfUSD. In doing this their stables are taken to Nerve Finance and exchanged for 3pool tokens that accrue their own interest in the form of NRV rewards. The additional interest the bfUSD earns is from borrowing fees on the Bigfoot platform. It doesn’t stop there though, lenders bfUSD is automatically staked to earn $ELE as well in our farming contract. Additionally users can bring 3Pool tokens from Nerve Finance directly.
Entering bfUSD this way and making use of Nerve Finance’s 3Pool, with it’s deep liquidity (over 400 million at time of writing) and tight peg to the underlying stables, allows users to enter and exit with minimal slippage. The 3Pool is further utilised to maximise capital efficiency, as funds that are not being lent to borrowers on Bigfoot continue to earn NRV rewards rather than laying dormant.
Furthermore if a user would like to withdraw from the Bigfoot Bank and bfUSD they can at any time, back to any of the 4 stable currencies mentioned above (BUSD, USDC, USDT, Nerve 3pool). Here they will incur a small Nerve Finance 3pool withdrawal fee of 0.02% coming out into BUSD, USDC, USDT and 0% for Nerve 3pool.
Today we are excited to announce the launch of the pair USDT/BUSD for borrowers to yield farm with up to x6 leverage.
Borrowers on the other hand can come to the platform with stables as collateral and/or 11TOKENS for the pool they wish to leverage farm with. For example the corresponding 11TOKENS for USDT/BUSD (provided via Wault Finance’s — WaultSwap) would be 11USDTBUSD. They can enter a leveraged position of up to x 2.5 for BUSD/OTHER pairs (not launched yet) and x6 leverage for the USDT/BUSD wLP pair, by supplying these tokens and borrowing from the bfUSD bank. This then buys the assets (in this case through Nerve Finance to minimise slippage) and builds LP tokens for the pool they are entering (on WaultSwap at this point), with the borrowed asset.
Please note during this process fees are incurred on various platforms to enter the position. Think of this like a deposit fee, lets use the USDTBUSD leveraged yield farm as an example. Fees on Nerve Finance run at about 0.02% (which scale with leverage), minimal slippage on Nerve, fees to withdraw the borrowed assets from the bfUSD Bank. This can add to about 0.3% of the position size on entry.
As per the way our leveraged yield farming platform works, users then earn compounding rewards adding to the LP of their position. Leverage is monitored throughout and interest charged. As long as their current leverage < death leverage they remain out of liquidation range.
Users can unstake from the pool at any time by closing their position. Here they will receive their entitled amount of Nerve 3pool tokens.
How to lend to the Bigfoot Bank — getting bfUSD
Entering the the Bigfoot Bank to get bfUSD is quite straightforward. On the dashboard of users can select the ‘earn’ button. This takes them to the Lending table where the bfUSD row appears as below.
From here users can select ‘Supply’ and be presented with the popup table below. Entering the amount of each Stablecoin they would like to supply (the platform will pickup what is available in the users connected wallet) they can then confirm and proceed with the transaction. Note users can enter with a combination of any amount of and number the stables listed.
In completing this transaction lenders will now have bfUSD in their wallet (please note these are non transferable). On the lending table mentioned above they can monitor the APY of the bfUSD, the utilisation % (that is the ratio of how much bfUSD is being lent versus being borrowed, as well as their balance). On the right of this row users will see a ‘Harvest’ button where they can claim pending E11 and 11NRV, which are ELE and NRV respectively that already staked in our vault compounding.
How to enter a leveraged USDT/BUSD position.
The other half of the platform allows users to borrow bfUSD against collateral to open a leveraged yield farming position. This is similar to how one would go about entering a CAKE/BNB position on Bigfoot previously. Using the USDT/BUSD pair as an example. The user would come to the platform and on the landing screen dashboard page see the following row:
Here they can select their desired leverage and the ‘Farm’ button. And the following will appear:
Here users can either supply 11USDTBUSD (which they will have if they are using the eleven.finance vault, but not staked in the farm), or supply BUSD (and the platform will handle all the conversions for them). They can then select/confirm their desired leverage and confirm to enter this position.
Users can then monitor their position under the ‘My positions’ tab. This will show the pools they have positions in, collateral value, current leverage, death leverage and debt ratio. As well as the ability to close or adjust their position.
As with our other farm on Bigfoot, if current leverage = death leverage then the position could potentially be liquidated, and users should be aware and monitor this. To track gains/losses of this position users can note the amount of collateral they entered the position with. A users current ‘Collateral Value’ represents the amount they would be entitled too if they were to close their position at the time.
What’s to come!
In developing bfUSD and opening the USDT/BUSD farm we have paved the way for more leveraged yield farming options to follow. Next up we plan to add all BUSD pairs from Wault Swap by our partners at Wault Finance, so be on the lookout for this.
Keep up to date, and find out more info about everything we are doing at:
Website: eleven.finance
Twitter: twitter.com/ElevenFinance
Telegram: t.me/ElevenFinance
Telegram ANN: t.me/ElevenAnnouncements
Gitbooks: 11eleven-11finance.gitbook.io/bigfoot/
