Introducing Pole Finance
Pole Finance is a Solana-based Decentralized Finance (DeFi) yield aggregator that is designed to automatically provide leverage and compound yields. Other applications and protocols can use Pole Finance as a piece of DeFi Lego.
Why we need yield aggregators
We have seen tremendous growth of DeFi in Solana. As projects got more complex, DeFi farmers found increasingly difficult to manage their yield farming positions. As a yield aggregator, Pole Finance provides a one-stop solution for sourcing opportunities, auto-leveraging and auto-compounding to simplify DeFi operations.
Why we choose Solana
Solana is a high-performance blockchain. It is 3,000 times faster and 16,000 times cheaper than Ethereum. The approximate models used by Ethereum projects can be replaced by accurate ones due to the performance of Solana. For instance, order books (e..g Serum) which are more capital efficient and provide less slippage will replace AMMs.
The advantage of its speed doesn’t come at a cost of composability. All the Defi protocols on Solana run in a single shard. The TVL of Solana DeFi has risen from $150M to $14.8B since March 2021 and the DeFi market will be more efficient as the Solana ecosystem keeps growing.
Pole Leveraged Yield Aggregator
The borrowing interest APY is higher than the lending interest APY in traditional markets. However, a DeFi protocol often offers protocol tokens to early users to encourage lending and borrowing. This makes the combining APY of lending interest and token reward to be higher than borrowing interest. Thus, repeatedly lending and borrowing the same asset will maximize the overall return in the form of leverage. Pole Finance is designed to seek the most profitable opportunities on Solana to ensure users obtain the highest interest in the whitelisted platforms.
To enable composability, all vault pools are tokenized as poToken. The pools are programmed to find the best return, to provide leverage and compound automatically.
For example, Alice deposited 100 USDC into the USDC pool at the price of 1 poUSDC = 1 USDC. Alice would receive 100 poUSDC. After a while the pool earned 5 USDC and now contains 105 USDC. Alice can redeem her USDC at a price of 1 poUSDC = 1.05 USDC and her 100 poUSDC becomes 105 USDC.
Let’s talk about a more complex condition. Alice does not redeem and Bob deposits another 105 USDC at the price of 1 poUSDC = 1.05 USDC. Now Alice and Bob both have 100 poUSDC. The pool keeps earning and the poUSDC price goes up to 1 poUSDC = 1.1 USDC. Both Alice and Bob have 110 USDC but Alice deposited less 5 USDC than Bob. The earlier you deposit and the longer you hold, the more return you’ll get.
As an interest-bearing asset, poToken is not only can be staked or traded, but also promisingly to become a part of other DeFi activities such as being used as collateral.
Join Pole Community
Pole Finance will launch on Solana mainnet in a few weeks. You can join the Pole community now to talk about the protocol and receive the latest updates.
Twitter: https://twitter.com/Pole_Finance
Discord: https://discord.gg/RASngHfHhS
Telgram: https://t.me/polefinance
