In Farmix protocol, there are several strategies available for participants, allowing them to choose the option that best suits their goals and risk tolerance. Here is a brief overview of the current strategies and their participants:
1. Lending (Staking)
- What is it? Participants stake their tokens (NOT, TON, USDT) to provide liquidity for issuing loans (leverage) to farmers who open farms. This is traditional staking, where the yield depends on the utilization rate.
- Yield: At maximum utilization, asset usage can lead to yields up to 200%, but based on protocol calculations, stable yields are around 30-50%. Rewards are paid in the same asset that you staked.
2. Leveraged Yield Farming
- What is it? Participants open farms using leverage, which increases farm yield. Farmers earn rewards both as standard liquidity provider rewards and additional "boosts."
- Yield and Risks: Yield increases proportionally to the leverage used, but it’s important to monitor the health factor (HF) — the security indicator of the position. If HF ≤ 1, the position will be liquidated. To reduce the likelihood of liquidation, the protocol includes an auto-compounder bot, which automatically reinvests rewards back into the farm to boost yield and improve the HF.
3. Liquidator
- What is it? Participants with a certain level of access can liquidate positions with low HF (less than 1) and earn a percentage of the liquidated assets.
- Future plans: Currently, liquidation is done automatically through an internal bot. However, in the future, participants will be able to trigger smart contracts for liquidation and receive rewards for doing so. A hackathon is planned for implementing this strategy in open-source.
4. Auto-compounder
- What is it? A bot that helps farmers increase their farm yields by automating the process of collecting and reinvesting rewards back into their farming position. This reduces liquidation risks and increases potential yields. This feature is still under development and is not yet operational.
Types of Participants in the Protocol:
- Lender (Staker) — The person who provides their assets for staking and receives yield from their use.
- Farmer — The person who uses leverage to open farms and increases yield through borrowing.
- Liquidator — The person who monitors positions at risk of liquidation and can liquidate such positions, receiving rewards for doing so.
- Auto-compounder — A bot that helps farmers increase their farm yields by reinvesting rewards.
These strategies create a flexible and multi-layered system, allowing participants to choose their involvement in the protocol based on their comfort level with risk and desired yield.