Extra Finance: Optimism-based leveraged yield aggregator protocol has been launched and will release an airdrop program.

2023-05-12 15:33

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Source: Extra Finance

In early March, Extra Finance, a leveraged yield aggregator protocol built on the Optimism ecosystem, launched its testnet version. During the two-month testing period, Extra Finance completed a series of upgrades, including new product features and UI optimizations, based on feedback from community users. At the beginning of this month, Extra Finance also passed PeckShield's comprehensive audit. With the beta version going live, Extra Finance will soon bring users more new experiences and will announce an airdrop plan.

What is Extra Finance?

Extra Finance is a community-driven leverage yield aggregator protocol built on the Optimism ecosystem.

Extra Finance empowers users to participate in various mining pools on Velodrome and other decentralized exchanges. By providing 3x or higher leverage, Extra Finance enables users to freely combine options such as reinvestment, market neutrality, and long/short mining to customize their own profit strategies.

In addition, Extra Finance can also serve as a lending agreement. Users can deposit funds into their lending pool to earn interest on their deposited assets. This feature provides users with a way to earn additional passive income.

Why choose Optimism?

Optimism is an Ethereum L2 that is the first to develop an Optimistic Rollup solution compatible with the Ethereum Virtual Machine (EVM), providing a fast, low-cost, and scalable solution for Ethereum. As a leading scaling solution for Ethereum, Optimism has become a popular choice for DeFi projects to improve their efficiency and user experience.

One key advantage of Optimism is its transaction cost. Although the transaction input used for Optimism transactions is equivalent to that of Ethereum, the cost of one unit of gas is only 0.001 gwei, which makes transactions on Optimism several times cheaper than on L1. As a result, Optimism creates space for high-frequency activities such as automatic compounding, which in turn leads to higher APY yields.

Extra Finance is committed to providing users with efficient and smooth mining and lending experiences. By leveraging Optimism's scalability features, Extra Finance can offer users lower costs and higher efficiency in transactions. In addition, Optimism's scalability and ability to accommodate more users also ensure that Extra Finance continues to grow and expand its user base.

What makes Extra Finance unique?

Extra Finance can provide a comprehensive range of product features to suit leveraged mining enthusiasts of different levels.

Easy-to-use design

Unlike some leveraged yield protocols, on Extra Finance, you do not need to provide a complete trading pair. To make earning yields easier, users only need to provide one token. Extra Finance's on-chain smart contract will automatically convert the tokens provided and borrowed by the user into the corresponding LP of the DEX (such as Velodrome) at a 50:50 ratio and deposit them into the mining pool to start earning yields.

Customized Leveraged Yield Strategy

Whether you are a conservative user or a radical user, you can find a suitable leverage profit strategy in Extra Finance.

The leverage yield strategy has been proven to increase mining efficiency while reducing market risks. For example, if you hold ETH and seek to generate income, you can borrow an equal amount of USDC to create ETH-USDC LP, which can earn mining income on DEX such as Velodrome. In addition, if you are bullish on ETH, you can open a 3x long-term position by borrowing additional USDC. When the price rises, you can get long-term profits, and the high yield of the leverage yield strategy can also compensate for potential price fluctuations.

In addition to long/short/neutral leveraged yield strategies, Extra Finance will also provide users with an automatic insurance vault (auto-vault) function in the future, which is a pseudo Delta neutral strategy of automatic rebalancing. This will automatically balance your PDN position, ensure neutral exposure, and avoid liquidation risks.

Professional mining profit calculator

Aggregated Yield Simulator: With the Aggregated Yield Simulator, users can see the estimated amount of yield they will receive, how price changes will affect their equity value, and the liquidation price based on different position settings. Users can also simulate the value changes of borrowing assets with different leverage settings.

One-click template: Users can directly use templates to mine long/short/neutral aggregated profits based on market predictions through one-click configuration.

Borrowing to obtain stable returns

Lending is providing assets to a lending pool, which are then borrowed by leveraged yield investors to execute leveraged yield strategies. On Extra Finance, lenders can lend various assets (such as ETH, USDC) to earn lending APY. Due to the clear use cases of these assets within the protocol, they will have higher utilization and generate higher returns than conventional lending protocols.

Token Economics

Extra Finance will adopt the Token model of veToken. EXTRA holders can vote to delegate their Tokens and receive veEXTRA. Holders of veEXTRA can receive rewards in APR, voting governance rights, priority unlocking of higher leverage multiples, and a series of privileges such as product features.

The total supply of EXTRA is 1,000,000,000, and the distribution and specific details are shown in the following figure:

Airdrop Plan

During the initial launch of Token, Extra Finance will distribute airdrop incentives to early supporters, early users, community OGs, and some leveraged mining users in the Optimism ecosystem.

At the end

In May, Extra Finance will launch its Beta version and officially release its Token. As the project progresses, more product features such as CLAMM Integration, One-click Farming Templates, Calculation Tools, Advanced Strategy Vaults, and Social Farming will be introduced to Extra Finance and its users.