Taking farming to the next level
Equilibrium is a master contract focused on active management. Similar to portfolio management from TradFi, Equilibrium will constantly monitor yield farming opportunities of various risks to provide liquidity and farm the most profitable strategy out there; compounding and migrating profits according to the set strategy. This will allow users to automatically earn the best yields YEL has to offer and get paid in YEL tokens. This will create immense buy pressure on the YEL token and provide balance to our yield farms and products.
There will be three strategy levels introduced by YEL Finance to start with:
- H2O (Safe)
- Tesla (Medium Risk)
- Frankenstein (High Risk)
Any user may enter the pool with one of four single deposit assets depending on the Network (i.e. ETH, BNB, Polygon or FTM). Once the deposit is completed, the user is accounted for a share of profits based on that user’s share of the total Equilibrium pool within that Network.
Smart contracts monitor and evaluate all farms for the chosen strategy, taking into account: liquidity depth, trading volumes, fees earned for LP and farming rewards. Once the most profitable opportunity is defined, Equilibrium swaps the original deposit to the required pair to join the pool, and received LPs are automatically placed into the farm. The contract will be auto-compounding, meaning that the contract will regularly sell half of the received rewards for the needed pair token and allocate it to the liquidity. This will constantly increase the investor’s share of the farm/pool which will generate more trading fees and rewards. If a new farming opportunity presents itself that is more profitable within the chosen strategy, Equilibrium will automatically reallocate all deposits to the new farming opportunity.
This model will be delivering users the best farming APYs on the network, as well as creating constant buy pressure on YEL token. Collected fees will be used to cover YEL enhanced farms, or simply burn YEL, depending on current price and circulation.
Equilibrium automatically performs auto compounding and allocates investments into multiple farms in order to optimize returns and perform the most efficient usage of funds. The protocol is built from multiple contracts that are operating simultaneously and have built-in triggers with each other.