I just want to quickly introduce Advias Protocol, a product we’re working on to come out early this year.
We’re a protocol that has an algorithm that is formulated to guarantee delta-positive debt positions. This same algorithm also creates a stable and high depositing yield.
As an example of what you can do, you can take out a loan with 1,000,000 UST as collateral and receive 20% APY, and then in return take out a debt asset like USDC at a 10% APY, at a 90% LTV.
1. Deposit 1,000,000 UST as collateral at a 20% APY
* will be worth 1.2M in 1 year
2. Take 900,000 USDC as debt at a 10% APY
* will be 990,000 USDC in debt in 1 year
From here, you can do many things, like increasing a position on assets like LUNA or ETH, looping back into the protocol to create more leverage and yield (risky), or simply increasing an APY with other protocols as a strategy.
No matter what, you just created a delta-positive position through Advias. At the end of the year, your collateral is appreciated by 200,000 (1.2M) and your debt by 90,000 (990K). This is a delta-positive position by 110,000 USD valuation.
In the whitepaper, we go over 2: [
There are more technical explanations in the Gitbook link.
1 thought on “A defi app formulated to delta-POSITIVE loans – Advias”
Wait thats cool af. How no comments