Beaver Finance User Handbook
How to Participate? (Section, Phases, Mechanism)
Beaver Finance allows users to leverage a single-asset staking model to obtain returns as high as dual-asset staking but without the hassle of swapping and staking two different assets on exchanges. Beaver is able to offer users higher APYs thanks to its Impermanent loss hedging algorithm, which enhances yields by protecting users’ principal.
In this guide, we’ll talk more about the participants on Beaver Platform or in which two ways you can interact with beaver to achieve true and honest yields!
In Beaver Finance V1.0 (closed fund model), operations are divided into two phases: a Staking phase and a Mining phase. **A countdown clock on the Dapp page of the Beaver Platform has been implemented to indicate the beginning and end of each of the two phases. (Countdown clock image enclosed below)
Beaver Finance Is Divided Into Two Sections: Farm and Hedge
In the Farm Section: the single asset staked/deposited by the users will be paired with another asset pro-rata. The automatically formed LP pair will then be staked on enterprising DEXs to obtain liquidity mining yields. Note that once the single asset is deposited by the user, the rest of the process is completely automated. With all the magic happening behind the scenes Beaver LPs can sit back and enjoy their maximized yields.
In the Hedge Section: the funds staked by users are fed into the Impermanent Loss Hedger which then protects the user’s assets deposited (LP farming positions) in the Farm section from impermanent loss. Stakers of the hedging section receive LP rewards and enjoy guaranteed lossless-principal investing.
What Happens During the Staking Phase?
During the staking period,
- The system will first only open the Hedge Section for users to deposit/invest;
- Once the Hedge Section quota has been reached, the system will close this section and open the Farm Section at an optimal ratio (ex: if the Farm/Hedge ratio for BTCB/BUSD reaches 10:1) for users to deposit/invest;
- When the Farm section quota is full, the system will open the Hedge section again;
- This cycle will repeat itself until the end of the Staking Period;
- At the beginning of the staking period in both the Hedge and the Farm section, the system will open the investment of one asset first;
- Once the token quota is reached, then the system will open the equivalent quota of another token;
The mechanism above has been implemented to ensure the maximum utilization of funds and to provide our users with the guarantee of optimized yields.
What Happens During the Mining Phase?
- After the staking period ends, the Mining will start immediately;
- This phase usually lasts 7–10 days;
- In this stage, both deposit and withdrawal functions are suspended. This is because all the funds locked within the platforms are invested in the mining or hedging algorithm;
- Note that only depositing and withdrawal of the principal asset will be suspended during the Farming Phase. **This means users can still Harvest the yields/rewards(like CAKE tokens) that they are being accrued at any time desired;
After the Mining phase ends, users can withdraw their principal asset (original asset deposited on the platform) along with the yields they accrued during the entirety of the staking and mining phases.
