Project Name: APYboost
Project Track: Integration
Team Name: Mythic Warrior
Team Member(s):
@adi99123
DevPost Project Link: (
APYboost | Devpost)
Project Goal: APYboost uses Flash loan (due to unavailability of Flash loan with JustLend it uses leverage by borrowing and reinvesting ) to multiply the interest rates up to 2.5 times.
Project Value: This project provide higher interest rate with less risk, which is vital for investment in Blockchain
Project Info: APYboost uses Flash loan (due to unavailability of Flash loan with JustLend it uses leverage by borrowing and reinvesting ) to multiply the interest rates up to 2.5 times. It is trying to increase the collateral value by borrowing 60% of amount and reinvesting it back to collateral. it will do this process 3 times to reach upto 250% of collateral.
Lets 100 $ deposit after 3 time reinvesting deposit is $250 and borrowing is $150. So now interest rate of sTRX for mainnet is 7.48
250/100-2150/100 = 15.7 %. it has increases interest rate by 210%.
Fundamental goal of this project is to provide less risky higher interest rate for everyone by leveraging the amount multiple time to multiply the exposure.
Project Website: Will be available soon
Project Test Instructions: GitHub - adi99/APYboost: APYboost uses Flash loan (due to unavailability of Flash loan with JustLend it uses leverage by borrowing and reinvesting ) to multiply the interest rates up to 2.5 times. This is the link. Just clone the Project.
Install dependencies with npm install
Run command npm start
Project Details: APYboost uses a Money Market (Lending and Borrowing Platform) to generate interest and uses reinvesting to multiply the deposit amount and earn interest on multiple of deposit. This only works if (borrow rate< deposit rate) otherwise it will provide less interest rate than Lending Protocol.
If borrowing rate=0 then it will increase the interest rate by 150% or 2.5 times. The closer, rate of borrow to deposit rate, less increment in the interest rate will be achieved.
Smart Contract links: Nile Testnet address:- TL9TxfNcThWkYzPKD5kcbvPYF74QYVqm6V
Project Milestones: Project is tested on Nile Testnet. Next step is to deploy on Mainnet
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Welcome to Hackathon Season 7, peace love and light.
Welcome to hackathon season 7
So basically, the less borrow rate, the more interest that users will earn.
Have you think of any plan that can help to ensure that the borrow rate remains consistently lower than the deposit rate to increase interest rate?
For Compound based product like Justlend borrow rate for highly used product generally less than deposit rate. Justlend have four asset which have more deposit interest rate TRX(staking TRX to sTRX(8.15%) than sTRX(8.15%)which can be increased up to 2.5times), sTRX, USDD, wstUSDT.
If we reach a saturation point where the Deposit APY is quite low or Borrow APY is quite high. It will not be feasible to do this. Instead we can do following steps:-
1-First way to generate yield is through building an exchange where user can swap through our Assets used in a liquidity pool. We can use the swap fee to generate yield for the users deposited in our Protocol.
2-Second way to generate yield through model similar to lido finance where deposited tokens pooled together and delegated to a set of trusted, professional validators. These validators participate in the Tron’s Delegated Proof of stake (DPoS) consensus mechanism helping to validate transaction and secure the network. As Validators earn reward these rewards will be used as yield for network.
3-Protocol’s native token BOOST can also be used to provide yield to Users. It can increase the Deposit APY by 5-10%.
4-Token launching platform to generate yield for Protocol, where startup who has successfully raised funding paid a fees to use our platform which can be used to provide yield.
welcome team, reading about this boost but I don’t understand? is it that simple to get 2.5 times the normal interest one is supposed to get?
It uses leverage to amplify the deposit amount. I have used Flash loan to develop this app on Polygon and optimism. Due to unavailibility of flash loan with JustLend, I have used this reinvesting process. I will explain how it works:-
1-Let say you have deposited $100.
2- It will deposit it in Justlend and borrow =60% which is $60.
3- It will deposit it the reinvest the borrowed amount into deposit.
4- Now you have $160 deposit and $60 borrow. Total exposure is still $100 but due to less borrowing rate like sTRX(2%)
5-We again borrow 60% of deposit which is $96
6- Our total deposit is $256 and borrowed amount $156. Total exposure is still $100 but our deposit is increased by 2.5 time so it will earn interest for $256 and have to pay interest for $156 which is borrowed.
7-If we deposit $100 in sTRX we will earn 8.15% which $8.15.
8-Now with this model it will earn interest rate for $256 which is 20.864 and have to pay for borrowed amount $156 and will have to pay 2% which is 3.12.
9- you will total earn 17.744 which is 17.744% of 100 which is upto 2.177 times of original interest.
10- If you deposit TRX you can earn extra 8.15 by staking and getting sTRX.
Risk
You have leveraged the amount so there is risk of liquidation. If borrow rate will be near 75% and TRX price moved downward sharply by 10% than there is risk of liquidation because it will reach liquidation threshold of 80 or 85%.
I have purposely used 60% so if TRX price move downward sharply by 25%. than there is risk of liquidation.
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APYboost’s use of leveraging to multiply interest rates is a clever way to maximize yields without relying on Flash loans, especially in environments like JustLend. By reinvesting borrowed amounts multiple times, you’re providing users with significantly higher returns.
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Thanks for Kind words. Launching it very soon on Mainnet.
alright, I get it now. Thank you
Thank you for detailing out the steps to me
Are there criteria set out in place in the selection of this trusted, professional validators in the lido style staking model?
One thing I forgot to point out that we can borrow different asset in case both borrowing rate and deposit rate becomes same.
Lets say current wstUSDT borrow rate is only 0.63%.
If deposit $100 sTRX and borrow $60 wstUSDT and than swap it to sTRX and then deposit it again.
If we do this 2 or 3 times. We can get higher return than my previous example.
In this case we have swap 2-3 times and borrow 2-3 time so transaction cost will be high.
So as long as there is some asset in JustLend protocol whose borrow rate is less than deposit rate of sTRX, we can do this.
Currently we can do this with TRX, sTRX, USDD, wstUSDT,SUN(borrow wstUSDT) and USDT (USDT->stUSDT-wstUSDT)
Lido Staking
Anyways There is two ways to do lido style staking
1- Become validator (If portocol have enough TRX to stake and vote). Advantage of this is that the my protocol have full control of user’s deposit and I don’t have to share the profit (interest) to other validator but it need to have setup(10k) and monthly expense of 2-5k.
2- Second ways to this by delegating user funds to validator which can be risky. To avert the risk, I will be looking for someone where government from the country he belongs fully support crypto and defi is fully accepted (not necessary but if goverment ban crypto like US, it will be hard to get money back)
Other thing about having a strong reputation in tron community, social media and who interact in forums.
I will look for validators who have close to 100% uptime so protocol can get most reward and also look who gave high percentage of rewards to delegators.
if protocol reach really high deposit (in million) might have to make contract agreement with validators that I staking this much money with them.
The project’s focus on creating a less risky yet profitable investment strategy will appeal to many users, especially those who may shy away from traditional high-risk yield farming options. By ensuring that borrowing rates stay lower than deposit rates, the risk factor is minimized while maintaining substantial gains.
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Only disadvantage with this is that User can only borrow very less or nothing with their deposit. In the first example the protocol is already borrowed 60%. If we allow borrowing it will be minimal Like 10% of 256 which is 25% of 100. It will make borrowing amount 70%
So in our case we should either block borrowing or very minimal borrowing (upto 25%)
