We are excited to announce that leveraged yield farming is now available on Bunny. Leveraged yield farming allows farmers to maximize farming profits by borrowing additional liquidity to increase an asset position that has been provided as collateral. Bunny harnesses xLP of Qubit to open leverage position and consequently, it will promote utilization of Qubit liquidity pool too.
As a yield farmer, this process is summarized by the following key steps:
1. Supply a supported single asset or LP token.
2. Set your level of leverage.
3. Choose the type of assets you would like to borrow.
Please refer to the guide below to learn how to multiply your yield farming position as well as adjust your position on our user interface.
How to engage in leveraged farming
- Go to pancakebunny.finance and connect your wallet.
2. Select your desired vault for leveraged farming.
3. Enter the amount of assets you would like to supply and click “Next”.
4. Set the leverage level you would like to enter at.
5. Choose the type of assets and ratio you would like to borrow and click “Next”.
6. Click the Details tab to see your position breakdown and click “Confirm” to complete the transaction.
7. Go to the Dashboard to review the details of your position. Note that your position will be liquidated when your Debt Ratio exceeds the liquidation threshold.
Frequently Asked Questions
Q. Are the vaults auto-compounding?
A. Yes, the vaults are auto-compounding the profits.
Q. What are the risks associated with leveraged farming?
A. There is a risk of Liquidation — in which your debt ratio reaches the Maximum Debt ratio allowed. At this point, your assets will be liquidated, or sold to cover the loss. Please see the table below. In such a case, a liquidation penalty of 5% from the remaining balance after repaying the loans is charged.
** Please note that the team is not responsible for liquidation due to market volatility and that everyone is responsible for managing their risk.
Q. What are the fee structures?
A. 3% of the performance fee is automatically deducted from the Yield Farming APY.
Q. Where will the fees go?
A. The performance fee of Leveraged Farming will go to the Bunny reward pool. and also the liquidation penalty will go to the Bunny reward pool.
Q. What is the maximum level of leverage?
A. The maximum level of leverage varies depending on the vault. The CAKE-BNB Vault, ETH-BNB Vault, and USDT-BUSD Vault allow up to 2, 3, and 3x leverage levels, respectively.
Q. What vaults will be available at launch?
Once we are satisfied with the consistency and stability of these initial vaults, we will work to add additional vaults.
MOUND is the innovative team behind Pancake Bunny, one of the leading DeFi platforms on BSC. Team MOUND is composed of developers and entrepreneurs with extensive experience across games, social platforms, quantitative financial services, and blockchain projects.
One of the most popular auto-compounding yield aggregators on the Binance Smart Chain. https://pancakebunny.finance/