What is Apricot?
Apricot is a next-gen lending protocol that supports leveraged yield farming on Solana. Our mission is to help users maximize yield while protecting their downsides.
With Apricot, users can:
1. Deposit assets to earn interests (Apricot Lend)
2. Borrow assets for trading or leveraged yield farming (Apricot Cross-Farm)
3. Pre-configure when and how automated deleveraging takes place (Apricot Assist)
Apricot Lend provides standard lending and borrowing services: users deposit assets to earn interests, and use their deposited assets as collateral to borrow other assets.
Apricot Cross-Farm (X-Farm)
Apricot X-Farm provides cross-margin leveraged yield farming service for users to maximize yield from their existing holdings.
In other leveraged yield farming protocols, users would need to own e.g. USDT and USDC in order to farm the stablecoin pairs. Otherwise, they would have to convert other tokens into these stablecoins. Instead, X-Farm enables users to collateralize non-stablecoin assets to borrow the stablecoins with up to 3x leverage. These stablecoins will then be auto-pooled and staked for LP tokens, resulting in 3x farming yield. Users can therefore:
1. Deposit non-stablecoin assets they already own (e.g. SOL, BTC, UST, etc.)
2. Borrow up to 3x USDT+USDC against the non-stablecoin collateral
3. Stake with the borrowed stablecoins to earn up to 3x USDT-USDC LP farming yield
In this way, X-Farm efficiently and significantly increases users’ access to additional yield without forcing them to sell any assets.
But wait, what about the risk of liquidation?
Apricot Assist 1.0
Fear not, Apricot Assist is designed specifically to help users manage their leveraged positions to reduce liquidation risks through an automated self-deleveraging mechanism. With Apricot Assist, users will be able to control:
1. When to start selling or redeeming your collateral assets
2. What and how much assets should be sold or redeemed
Take the example above where a user has opened a 3x leverage USDT-USDC LP position against SOL. However, now the price of SOL fall dramatically overnight. The user can stay protected if he or she has configured Apricot Assist to perform the following deleveraging actions:
1. When: when “borrow limit used” reaches 95% (liquidation at 100%)
2. What and how: redeem X amount of USDT-USDC LP tokens back to USDT and USDC, and repay the corresponding debt to get back to 90% “borrow limit used”
Apricot Assist’s timely intervention produces the following outcomes:
1. “borrow limit used” goes down to 90%, back to safety
2. All initial SOL principal is preserved
3. Size of USDC-USDT LP position has decreased (lower leverage ratio, less rewards)
As a user, you can program when Apricot Assist gets activated and how many LP tokens get redeemed and etc. using the Assist Simulator.
Note that current version of Apricot Assist 1.0 only supports the repayment of stablecoin debt. In near future, there will be additional support for the repayment of non-stable tokens. For more details, please refer to the Apricot Assist section under Product User Guide.