JewelSwap Farms
Last updated
Last updated
JewelSwap Farms are special farms created by the JewelSwap team that embody more advanced DeFi strategies to it's users.
JewelSwap Farms get to enjoy the following Farm Types:
The EGLD Single-Asset-Farm works like this:
User deposits 1 EGLD, which is used to mint 1 JWLEGLD and then staked for SJWLEGLD
1 JWLEGLD is being flashminted, and sold for EGLD on AshSwap
That 1 EGLD is being used to mint 1 JWLEGLD and that is also staked for SJWLEGLD
Now, the user borrows 1 JWLEGLD from JewelSwap, against his 2 SJWLEGLD.
That 1 JWLEGLD is used to return the flashminted JWLEGLD.
Liquidation can still happen if the open-market price of JWLEGLD were to rise against EGLD. The safety buffer of your position has to fall to zero for a liquidation to occur. However this is unlikely due to arbitrage, but not impossible.
When closing the position, the following happens:
Unstake all SJWLEGLD
Return 1 JWLEGLD, which you still owe JewelSwap
Swap the remaining amount to EGLD on AshSwap and the remaining EGLD are yours.
Be aware of slippage/swap fees when opening and closing positions. After all, the borrowed assets need to be swapped accordingly to create more LP Tokens. When opening or closing a position within a short timeframe, you will not have made any money, perhaps even lost a few dollars due to the swap fees. Leveraged Farms should be used for longer timeframes ideally.
The sEGLD, USDC and USDT Single-Asset-Farms utilize Hatom:
User deposits 1 sEGLD (or USDC), which is lent and activated as collateral at Hatom to earn USDC rewards
1 JWLEGLD (or JWLUSD) is being flashminted, and swapped for sEGLD (or USDC) on Ashswap
Now, the user borrows 1 JWLEGLD (or JWLUSD) from JewelSwap, against his collateral of 2 sEGLD (or USDC).
That 1 JWLEGLD (or JWLUSD) is used to return the flashminted JWLEGLD (or JWLUSD)
And now, closing the position…
Withdraw sEGLD (or USDC) from both, collateral and from lending
Buy 1 JWLEGLD (or JWLUSD) using sEGLD to pay back the debt
The rest sEGLD (or USDC) are returned to the user
Be aware of slippage/swap fees when opening and closing positions. After all, the borrowed assets need to be swapped accordingly to create more LP Tokens. When opening or closing a position within a short timeframe, you will not have made any money, perhaps even lost a few dollars due to the swap fees. Leveraged Farms should be used for longer timeframes ideally.
The other Farms listed at the moment are simply leveraged AshSwap Farms, with the difference being that the user does not borrow from lenders, instead, he borrows JWLEGLD or JWLUSD directly from the JewelSwap protocol. The borrowed JWLEGLD or JWLUSD is swapped to the needed asset to create more LP Tokens.
Be aware of slippage/swap fees when opening and closing positions. After all, the borrowed assets need to be swapped accordingly to create more LP Tokens. When opening or closing a position within a short timeframe, you will not have made any money, perhaps even lost a few dollars due to the swap fees. Leveraged Farms should be used for longer timeframes ideally.
For a UI walkthrough of how to use the farms, check out the tutorial.
For fee information, check out the fee table.
