Note: Rodeo currently only accepts USDC into lending pools - no other assets (yet)
Lenders in the Rodeo protocol deposit USDC into the Lending pool to earn safe-yet-high passive APR, paid by farmers. Lenders have no risk of liquidation and collection fees based on the current interest rate.
Lending pools are smart contracts that provide a decentralized place to lend and borrow money. Lenders are given a safe and easy way to earn interest on their assets. In contrast, borrowers are given the ability to leverage up their liquidity pool position size and boost their APY.
At Rodeo Finance, we offer USDC lending pools with returns that can generally beat our largest competitors, such as Aave and Compound Finance. This is because our pools are specifically optimized for yield in mind whereas pools offered by the likes of Aave and Compound finance are primarily optimized for lending markets. Lenders are able to withdraw their tokens and additional yield at any time, assuming there is enough un-lent USDC in the pool.
Rodeo Finance has implemented security measures to protect lenders' capital:
Although not isolated in the traditional money market sense, Rodeo only allows users to interact with approved strategies controlled by the Rodeo Contracts. Prioritizing safety, lenders should know that no matter where a borrower chooses to place their leveraged funds, they will always be in approved high quality vaults. Longterm, the Rodeo DAO will choose the strategies to implement for the protocol.
We let our liquidation process be decentralized, where any MEV searcher can participate, guaranteeing that Rodeo Finance is not a single point of failure and ensuring timely liquidations.
Rodeo Finance will hold protocol reserves ready to reimburse lenders if liquidation doesn't occur in a timely fashion, affecting the lenders' capital.
Rodeo prevents common attack vectors through our smart contracts (such as preventing flash loans and positions from being opened and closed in the same block)
Rodeo utilizes chainlink oracles for all lending pools asset and only proven price oracles for Vaults (such as Uniswap TWAPs). Rodeo is exploring additional redundant methods for added security