How to Participate
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As a user, you can participate in Akita Finance in four different ways:
Lender: Akita Finance allows you to earn income on your base assets by depositing them into our vaults; these assets are then offered to yield farmers for leveraging up their positions
Yield farmer: As a farmer, you can earn a higher yield by opening a leveraged position on Akita Finance. Of course, this comes with higher risks — liquidation, impermanent loss, etc.
Bounty hunter: Calling a contract to claim pending rewards and reinvesting them back into the pool, receiving part of the reward in return
Liquidator: Monitoring the pool for underwater positions and liquidating them when they become too risky
At launch, we will support two base assets — BNB and BUSD — and integrate our leveraged farming with PancakeSwap.
In this example below, we show how each participant works together in our ecosystem:
Alice deposits her BNB into our deposit vault; her asset becomes available for a yield farmer to borrow; she earns interest for providing this liquidity
Bob wants to open a leveraged yield farming position on the BNB-BTCB pair; he borrows BNB from the vault and enjoys higher yield farming rewards
Akita Finance smart contract takes care of all the mechanics behind the scenes — optimally switching assets to the right ratio, providing liquidity to the pool, staking LP for Pancake Rewards
Carlos monitors the amount of rewards accrued in each pool and helps reinvest it back, compounding returns for all farmers. For this service, he takes 3% of the reward pool
Erin monitors the health of each leveraged position, and when it goes beyond designated parameters, she helps liquidate the position, making sure lenders such as Alice do not lose their capital. For this service, she take a 5% reward on the liquidated position amount
