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Booster
The Booster is a unique feature in our lending protocol that provides additional benefits to users. By staking HTM tokens in the Booster module, users can unlock extra rewards, which enhance their overall yield.
To fully benefit from the Boosted APYs, users must stake an amount of HTM tokens equivalent to 10% of their total assets supplied to the lending protocol, which they've also activated as collateral. The boost isn't limited to a specific money market and applies to all assets users have activated as collateral.
The APY (Annual Percentage Yield) is calculated on top of the base APY that users receive from the lending protocol. For instance, if a user receives a base APY of 4% from lending a particular asset and an additional Booster APY of 6%, their total APY would be 10%. This combined APY offers users an enticing opportunity to maximize their returns.
The APY on the boosted position isn't fixed; the rate is determined by a combination of factors, including the total amount of HTM tokens staked in the Booster and the overall liquidity of the lending protocol.
To fully leverage the highest Booster APY, ensure that the value of your Staked HTM meets or exceeds 10% of your total collateral position. If your Staked HTM's value falls short of 10% of your total collateral, the Booster APY earned will be determined by the ratio of your Staked HTM balance to your collateral value.
Users can stake HTM in the Booster module without being capped at 10%. This means they have the freedom to stake as much as they want in order to maintain booster benefits, particularly during times of market volatility. This flexibility empowers users to protect their boosted positions and continue to reap the benefits of enhanced yields. It reflects the Booster's design in accommodating market fluctuations while optimizing rewards.
Users can withdraw their staked HTM tokens at their discretion. However, each unstaking action initiates a 7-day cooldown period. During these 7 days, users won't receive the boosted rewards but will only earn the supply APY plus any additional rewards available for specific money markets.
Here's an example to help illustrate how this works:
Suppose Bob has a total of $50K in the lending protocol. The supply APY is 5%, and the Boosted APY is 10%. For Bob to achieve the combined 15% APY, he needs to stake $5K worth of HTM tokens, 10% of his total position in the lending protocol. If Bob opts to stake only $2.5K of HTM tokens, he will qualify for just half of the Boosted APY, equating to 5%. Consequently, his cumulative APY will be 10%, consisting of the 5% supply APY and the 5% Boosted APY.
The Booster plays an important role in distributing rewards on the lending protocol and will also play an important role in the upcoming products of the protocol. Its significance goes beyond immediate benefits and lays the groundwork for future developments and innovations. The Booster's integration into subsequent products highlights its strategic importance, indicating that users can expect even more advantageous opportunities and enhanced yields as the protocol evolves and expands.
Last modified 9d ago