With the launch of our Degenbox, Abracadabra can now enhance the yield on interest-bearing collaterals on all the chains it is on!
Let’s see how this applies to Fantom Opera with our Spiritswap LP strategy!
The Strategy
Let’s dive into our Degenbox Strategy on FTM, how it works and how our users can benefit from it! Before starting, make sure to read how Abracadabra Lending Markets and Leveraged Positions work here.
Step 1: The Cauldrons
Users join one of the available Spiritswap LP markets (either simply depositing collaterals or leveraging their SLP positions). No matter what they choose, as long as they have a deposited SLP balance, they will receive rewards from the strategy! Currently the only strategy available is the MIM/FTM one, but more will follow!
Step 2: Degenbox
As all of our SLP cauldrons are built on top of Degenbox, Abracadabra can use the user’s deposited SLPs to produce yield. For this strategy, we are depositing the SLPs into Spiritswap Farming contract, and farm SPIRIT with it! Approximately once per day, the SPIRIT rewards are harvested and collected. Note that a 10% cut is taken as a management fee, and treated as protocol revenue (i.e used in sSPELL buybacks)!
Step 3: Distributing Rewards
The farmed SPIRIT are then automatically compounded back into new SLP tokens, that are then redistributed to every Abracadabra user of the cauldron, proportionally to their deposited amount!
And just like this, our SLP cauldrons strategy is now live! Note that from now on, users will see their SLP collateral increase in quantity, not only in value!
The best thing about it is that there is no need to migrate your collateral. If you had a position already open in one of the SLPs markets, you are already earning additional SLPs rewards!
Withdrawing SLP tokens
Our strategies keep approximately 85% of the SLPs in Spiritswap farming contracts, and 15% in Degenbox to allow users to withdraw smoothly!
As a consequence, the amount withdrawable is limited.
Once this limits approaches zero, new SLPs are unstaked and withdrawals are again available!
You can check the amount Available to be withdrawn in the “My Open Position” box, under “Withdrawable Amount”.