Lenders
Lenders in the Rodeo protocol deposit USDC (Arbitrum) into the Lending pool.
Note: Rodeo currently only accepts USDC into lending pools - no other assets (yet).
Lenders then earn interest on their deposit. The interest rate (APR) earned by USDC lenders is calculated based on the utilization of the lending pool. Lenders can further boost their APR by locking their ribAssets for a fixed amount of time to receive a % of the Rodeo platform fees (earning from real yield).
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
Rodeo aims for the least surprise, with lending and interest rates following a similar model to commonly used protocols, ie Compound and Aave.
The supply interest rate is calculated using several variables, and changes according to the level of utilization in the lending pool. The supply rate value consists of a base rate, which is then added to a 'low' variable rate that increases or decreases depending on the level of pool utilization.
When the level of utilization reaches a pre-defined 'kink' value, a 'high' dynamic rate is used. This jump in dynamic rate is designed to stabilize the system by encouraging greater amounts of funds from lenders when utilization reaches high levels, while dampening borrowing activity from users.
The protocol may or may not bootstrap pools. Regardless, incentives will be put place so that farmers get a good rate and lenders also get good yield and can withdraw. In the future, we might implement some bonding mechanism that will generate ProtocolOwnedLiquidity which, yes, would mean there's always a buffer for withdrawals.
There are no time limits for entering or exiting positions, except for some strategies that depend on external protocols rules and restrictions.
Yield for lenders comes from the interest paid by borrowers on the platform. Yield for borrowers that enter positions is generated from fees and protocol revenue that varies depending on the particular strategy used. This includes revenue from Uniswap, Sushiswap, and GMX trading fees.
Interest is calculated every second, and is updated and accrued during any lending, withdraw, or borrow action.
No, only borrowers that use leverage can be liquidated if price moves too far against them
It's extremely unlikely. Rodeo Finance uses conservative liquidation thresholds to protect lenders, so liquidation will be completed even during extreme price movements.
Additionally Rodeo Finance has numerous additional security layers including Chainlink price feeds for major assets, battle tested oracles for Farm prices, decentralized liquidation bots, flash loan protection, and defines allowable actions for utilizing assets within Rodeo
Rodeo also maintains Lending Pool Reserve Assets to pay back bad debt, should the unlikely situation occur
Last modified 1mo ago