DeFi is a word that means financial freedom, but most users think it’s too difficult and risky. USTX Team ultimate goal is to simplify user access to DeFi and provide solutions to give users new opportunities. We now present WARP, a DeFi app within the USTX ecosystem that allows the users to stake USDD and get 30%+ APR with low risk and easy access.
Background
During the last months the DeFi space took some serious hits, beginning with Luna-UST crash and the following down-trend of the market. In the middle of this crisis, TronDAO launched USDD, a very ambitious project to give added value to users via a decentralized, over-collateralized, algorithmic stablecoin promising very interesting yield rates (up to 30%). Everything looks good now with USDD, it ticks all boxes: it’s decentralized, over-collateralized with great APY. But is it enough for users to jump on board?Let’s look at the last part, the promised high yield, up to 30%. How easy is to get that APY? Where is it available? After a quick search everyone can see that 30% is available only on CEX, which is not great for a stablecoin that has the word “decentralized” in its name. So, what about DeFi yields? The 30% APY is not available on DeFi, unless you chose to farm the USDD/TRX LP, which exposes your capital to TRX price fluctuation.
So we did some research and tried to find a way to offer Tron and USTX users the best USDD DeFi APY and the simplest way to access it. We worked the math, coded the smart contracts, tested them and now we present WARP, our way to simplify USDD yield harvesting.
The app
WARP implements a pseudo delta netral farming strategy on the USDD/TRX liquidity pool on SunSwap. This allow to get the best APR on the market and reducing the risk associated to TRX price variations. The user can stake USDD and get weekly USDD rewards using a simple interface.!
What is the role of USTX in all this? WARP will merge in the USTX ecosystem in two ways: to generate more buyback and to increase the APR for USTX holders.The WARP app will distribute weekly rewards to users, but a part of the raw APR will be routed to USTX buyback and increase token price and the staking rewards sustainability.To incentive WARP users to also buy and stake USTX tokens, they will benefit from a multiplying factor over the base APR, called Warp Factor.
The user warp factor is determined by the amount of USTX the users holds in any of the locked staking options that USTX offers. Maximum warp is obtained when 20 USTX are held for every USDD deposited, that corresponds to a 50% increase over the base APR.So, making the best use of Tron USDD DeFi options, we’re able to maximize the user rewards and simplify the overall experience at the same time. Warp users will get over 30% APR, while normal deposits still get 20% APR (these APRs will change over time and will depend on Sun.io and JustLend conditions).
What are the conditions to use WARP
- Interface: web app accessible via browser (pc, mac, mobile)
- Wallet: Tronlink, Math and Klever
- Deposit token: USDD TRC20
- Rewards token: USDD TRC20
- Deposit lock: 1 full epoch (epochs duration is 1 week, changes every Saturday)
- Rewards lock: till next epoch transition (unlock on Saturday after the request)
- Rewards compounding: yes, manual compounding available
- Max Warp factor: 5.0 (+50%) if user has at least 20 USTX in locked staking every USDD deposited
- Fees: app requires energy to operate, a portion of the rewards will be used for buyback and reserve (max 25%), balance withdraw is not taxed unless the equity ratio is below 100%. This can happen after significant changes in TRX price, but recovers naturally within a few days. The team will create a reserve in the contract to avoid equity ratio < 100%.
- Custody: the deposits are fully managed within the contract, they will NOT be moved to team wallets. The smart contract handles all the interactions with JustLend, SunSwap, Sun.io and all other contracts required to manage the strategy.
- Management: the team will monitor the equity level continuously and weekly will re-balance the strategy, to make sure that it stays close to neutrality.
- APR: Warp yield will vary over time and will depend on Sun.io and JustLend conditions. The team will make sure the contract parameters are always optimized for the best yield and lowest risk.
- Anti-whale: There is a limit on how much a single user can deposit. Currently is 15,000 USDD but it will be increased to 25,000 USDD.
Risks
As always, we want informed users, so here’s the risks associated with Warp:
- smart contract risk: we carefully designed and tested the contracts on Nile and mainnet, but human error can never be excluded 100%;
- capital risk: in case of TRX price variations, the value of the underlying assets (deposits, borrows and LP value) can go below 100%. The team will make sure that over time and adequate reserve will be created to handle these events;
- liquidation risk: TRX is borrowed from JustLend against USDD deposits. The strategy is balanced so that if TRX price increases up to 85% there is no liquidation risk. The team will monitor the margin and act to re-balance the strategy in case of significant variation from nominal;
- USDD price risk: the contract works with USDD, so all values are relative to USDD. If USDD price is reduced from nominal (1$), the same will happen to the deposit value. This risk is NOT strictly related to Warp, but is present every time the user holds USDD (or any other token).
This is not financial advice, DYOR.
Contacts
🌐 WEB: https://ustx.io/
🚀 DEX: dex.ustx.io
🚀 WARP: dex.ustx.io/warp.html
✉️ Mail: info@ustx.io
🌍 Twitter: http://twitter.com/USTX6
🇺🇸 Telegram (International): http://t.me/ustx_en
🇮🇹 Telegram ITA: http://t.me/ustx_it
🌍 Github: https://github.com/ustx/ustx-dex
🌍 Reddit: https://www.reddit.com/r/USTX/
🌍 Youtube: https://www.youtube.com/channel/USTX
🌍 Medium: https://medium.com/@USTX
🌍 Linkedin: https://www.linkedin.com/company/ustx
🌍 Facebook: https://www.facebook.com/groups/ustxcrypto
🌍 Discord: https://discord.gg/2stXZjtv9A