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V2 - Leveraged Yield Farms

Concept of Leveraged Yield Farming

Leveraged yield farming allows users to gain access to assets with undercollateralized loans. Through leveraged yield farming, users can multiply their yield farming principles and achieve higher profits, and on Flux V2’s, the leveraged loan is maxed at 10x.
However, multiplying the yield farming principles comes with higher risks through the leverage! When the collateral cannot cover the platform’s necessary transactions or fees, liquidation of the loan will occur. The liquidation rules state: when the debt ratio reaches a pre-defined rate, liquidation will be triggered. The depth ratio is defined as the debt value divided by position value. The debt value is the value of a user’s borrowed assets, and the position value is the value of a user’s farming position (collateral + borrowed assets + value of LP tokens)

Yield Farming Flow Chart

Farm Parameters

Flux V2 Farm Parameters include platform, LPs, leverage amount, liquidation threshold value, borrowed tokens, etc.
Platform - On which DeFi platform the specific farm is deployed
LPs - The underlying asset pairs to provide liquidity
Leverage Amount - The maximum leverage that is supported for the specific farm, also influencing an account’s total position value
Liquidation Threshold - The debt ratio threshold of a specific position, meaning that a position will be liquidated when the limit is overstepped
Borrow Tokens - The tokens that can be borrowed (LPs) with leverage after the collateral is deposited into the Flux V2 farms
Platform
LPs
Leverage
Liquidation Threshold
Borrow Tokens
MDEX
HUSD/USDT
10x
94%
HUSD/USDT
MDEX
USDC/USDT
10x
94%
USDC/USDT
MDEX
DAI/USDT
10x
94%
USDT
MDEX
ETH/HBTC
3.5x
83.30%
ETH/HBTC
MDEX
HBTC/USDT
3.5x
83.30%
HBTC/USDT
MDEX
MDX/HBTC
3.5x
71.42%
HBTC/MDEX
MDEX
HT/USDT
3.5x
83.30%
HT/USDT
MDEX
MDX/HT
3.5x
71.42%
HT/MDEX
MDEX
ETH/USDT
3.5x
83.30%
ETH/USDT
MDEX
HLTC/USDT
3.5x
83.30%
USDT
MDEX
HT/ETH
3.5x
83.30%
HT/ETH
MDEX
HFIL/USDT
3.5x
83.30%
USDT
MDEX
MDEX/USDT
3.5x
71.42%
USDT
MDEX
HDOT/USDT
3.5X
83.30%
USDT
MDEX
HBCH/USDT
3.5X
83.30%
USDT

Mining APY Calculations

APY Equation
  • APY = (1+Total APR)^356 -1
  • Total APR= Yield farming + Trading Fee + Flux Rewards - Borrowing Interest
  • Yield farming= LP流动性挖矿的单利年化收益率
  • Trading Fee = Average trading fees of the past 7 days * current leverage
  • FLUX Rewards = Flux V2 borrowed assets’ APY * (Current Leverage -1)
  • Borrowing Interest = Flux V2 collateral (lending) assets’ APY * (Current Leverage -1)
APY Calculation Example
  • The APR on Flux V2 is 9.35% for the HUSD/USDT LP on the MDEX platform;
  • Flux Rewards=0%,Borrowing Interest=0%;When the Flux V2 leverage is 1 (no leverage multiplier), both Flux Rewards and Borrowing Interest are 0;
  • Total APR= Yield farming + Trading Fee + Flux Rewards - Borrowing Interest=9.35%+27.68%+0%-0%=37.03%

Flux V2 Fees

  • Leveraged Profit Sharing: 0%
  • Position opening: 0%
  • Liquidation fees: 5%
  • Collateral deposit fees: 0%
  • Auto-compounding fees: 1% - 3% of auto-compounding amount