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Apricot, why should I be interested in this protocol?

Nov 21, 2021
4.86 (362 votes)

Apricot, why should I be interested in this protocol? Discover the new generation loan protocol on SOLANA.

Apricot, a new generation lending protocol, has the following features.

The characteristics of this platform are sufficiently interesting to be known by all and to mark at the moment the decentralized finance news.

Apricot, its characteristics:

With this platform, users can:

  • Deposit assets to earn interests (Apricot Lend)
  • Borrow assets for trading or leveraged yield farming (Apricot Cross-Farm)
  • Pre-configure when and how automated deleveraging takes place (Apricot Assist)

Apricot

Apricot Lend

This protocol provides standard lending and borrowing services: users deposit assets to earn interests, and use their deposited assets as collateral to borrow other assets.

Apricot Cross-Farm (X-Farm)

This protocol provides cross-margin leveraged yield farming service for users to maximize yield from their existing holdings.

Let’s take USDT-USDC LP farming for example. In other leveraged yield farming protocols, users would need to own some amount of USDT and USDC before they can start farming the stablecoin pair. If they do not have USDT and USDC sitting in their wallet, they would have to swap other tokens into these stablecoins first.

On X-Farm, users do not need to own any amount of USDT or USDC to start farming. Instead, they can collateralize their non-stablecoin assets to borrow the stablecoins with up to 3x leverage, and start farming USDT-USDC LP right away. These stablecoins will then be auto-pooled and staked for LP tokens, resulting in 3x farming yield.

Apricot Assist 1.0

Don’t worry, Apricot Assist is designed specifically to help users manage their leveraged positions to reduce liquidation risk through an automated self-degrading mechanism. With this assistance, users will be able to control :

  • When to start selling or redeeming your collateral assets
  • What and how much assets should be sold or redeemed

Take the example above where a user has opened a 3x leverage USDT-USDC LP position against SOL. However, now the price of SOL fall dramatically overnight. The user can stay protected if he or she has configured Apricot Assist to perform the following deleveraging actions:

  • When: when “borrow limit used” reaches 95% (liquidation at 100%)
  • What and how: redeem X amount of USDT-USDC LP tokens back to USDT and USDC, and repay the corresponding debt to get back to 90% “borrow limit used”

As a user, you can program when Apricot Assist gets activated and how many LP tokens get redeemed and etc. using the Assist Simulator.

Note that current version of Assist 1.0 only supports the repayment of stablecoin debt. In near future, there will be additional support for the repayment of non-stable tokens.

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