AstroFarming

The AstroFarm vaults contain two new features that allow users to: 1. farm with your collateral, and 2. automate a leveraged degen strategy (looping).

The first feature’s goal is to allow users to farm with their LP tokens while collateralizing them on the OINDAO to mint stablecoins - essentially, you can have your cake and eat it too. The second, automated leveraging, is an automation of depositing, minting stablecoins, selling stablecoins for more collateral, depositing and minting again. The process is now contained all in one transaction through a flash loan and a partnered DEX.

One of the greatest benefits is getting multiples on your yield-bearing assets WHILE you farm with your original and levered collateral, all in a simple transaction that you can also undo with a click of a button!

Features AstroFarms are differentiated by two major features: automated farming, and automated leveraging. Farming When users collateralize their yield-bearing assets, it will automatically be deposited into a corresponding farm on one of our partnered DEXes and automatically compounded. This means users won’t have to miss out on farming opportunities with their LP tokens! Leveraging A degen strategy of “collateralize, mint, swap for more collateral, and collateralize again” can automatically be done in one transaction!

Why use AstroFarming to Leverage Positions?

For yield-bearing positions, the process for the users is often just a simple “hodl for the yields” type of play. While this can be a great part of anyone’s portfolio, depending on the risk tolerance levels of the user, it may leave quite a significant chunk of capital on the table that is left unutilized.

There is also the dilemma of collateralizing on the OINDAO vs farming on DEXes. Users are now able to reap the benefits of both.

The AstoFarm function allows users to lever these assets in a simple click, bringing their rewards up by the multiples of their leverage. In doing so, they can maximize their capital efficiency beyond their starting point of a simple hodl position. In essence, if you’re staking in the stablecoin liquidity pools, you can multiply your earnings while partaking in the farms all in a few simple clicks.

Let's get started!

NOTE: Users will not have any assets in their possession if a leveraged position is liquidated! Also, please bear in mind that leverage is a risky process, and users should exercise extreme caution and pay keen attention to their C-ratio when taking leveraged positions to avoid potential financial losses.

Rewards

Farming rewards will be compounded (currently at 8% APR) and converted to more USDC-USDT TLP tokens without the need to claim TRI rewards and restart the process.

Compounding occurs automatically once 200 TRI is collected collectively for all depositors of the USDC-USDT TLP vault. The system deducts a 10% management fee from the collected rewards as protocol revenue.

C-ratio

As the rewards accrue and are compounded, the C-ratio will most likely rise unless dampened by impermanent loss (unlikely for stablecoin LP tokens), due to auto-compounding - offsetting the stability fees!

Note that users can also take advantage of aUSDO-USDT farm on Trisolaris which has 35% APR as of writing, giving users a total of 43% APR for staking stablecoins! Calculated as follows:

8% APR + 35% APR = 43% APR

Important to remember: When you stake LP tokens into a farm, you also continue to earn trading fees from the corresponding liquidity pool

How It Works

Here is a quick overview of the AstroFarm function, and its behind-the-scenes mechanisms with the example of a USDC-USDT LP token from Trisolaris.

NOTE: Loop refers to one complete cycle of collateral -> deposit -> mint -> swap for collateral

Initiating AstroFarm Start with $1000 that has been put into the USDC-USDT Trisolaris Liquidity Pool (500 USDT 500 USDC).

Step 1: User initiates AstroFarm on the OINDAO with 2x loop, and $1000 of USDC-USDT TLP tokens from Trisolaris

Step 2: AstroFarm takes a flash loan of 1700 aUSDO

Step 3: 1700 aUSDO is swapped for 850 USDC and 850 USDT through Trisolaris

Step 4: The USDC and USDT are staked into the USDC-USDT liquidity pool on Trisolaris

Step 5: The resulting LP tokens from Step 4 are then staked into the Farms on Trisolaris

Step 6: The user now has: Debt position: ~1700 aUSDO Staked: ~$2700 USDC-USDT TLP into the Trisolaris Farm Total collateral value: ~$2700 USDC-USDT TLP Total leverage: ~2.7x C-ratio: ~150%

Unwinding AstroFarm This is done automatically in one transaction as well, just in the reverse order.

Step 1: User initiates the unwinding of the transaction above

Step 2: AstroFarm unstakes the LP tokens from the Trisolaris Farm (which also claims the rewards)

Step 3: The LP tokens are unstaked from the liquidity pool

Step 4: The received tokens (USDC and USDT in this case) from step 3 are used to pay back the debt

Step 5: You have now successfully unwound your levered position, plus any rewards you have accrued, minus any fees paid.

AstroFarm Parameters

Your estimated parameters are shown on the Transaction Settings box once you click the “Leverage” option:

Estimated Leverage: the multiple of your starting value vs. ending value (e.g. start with $1000, end with $2000 = 2x leverage)

Estimated Total Collateral Levered: your starting collateral value + AstroFarm added collateral value (e.g. start with $1000, AstroFarm adds $1000 = $2000 Total Collateral Levered)

Estimated aUSDO Debt Amount: your outstanding debt position added by the AstroFarm

Estimated C-Ratio: the estimated c-ratio once your transaction is complete

Estimated liquidation Price: collateral value at which you can expect to liquidate this leveraged position.