LEVF - ECOSYSTEM

Let's take a look in details at how things flow within the Levf Ecosystem, tying together all that we have mentioned so far with regards to Levf as a matching platform, Liquidity Providers and Yield Farmers.

Ecosystem full view

1) Liquidity Provider deposits DAI to the Treasury Pool.

2) Yield Farmer choose from the white-listed DAI farming pools and deposit his 1x capital into Levf’s Farming Adaptor.

3) The Farming Adaptor will deploy a 20x leveraged amount to selected Aggregator’s DAI farming pool.

4) Yield Farmer chooses to redeem and exit position when his desired yield is met, the full 20x invested amount plus gross profit will go back to Levf’s Farming Adaptor.

5) The Farming Adaptor will return the 19x borrowed capital plus interest earned to the Treasury Pool. Liquidity Provider can withdraw his deposit amount plus interest earned at any time as long as there is sufficient liquidity in Treasury Pool.

6) The Farming Adaptor will levy a 10% tax on Yield Farmer’s gross profit after interest repaid. This will be transferred to the Reserve Pool.

7) Yield Farmer gets back his 1x capital plus net profit (gross profit on 20x capital - interest on 19x borrowing - 10% tax)

8) The accumulated amount in the Reserve Pool belongs only to the LFI token holders specifically, and not all Liquidity Providers.