Introducing BiFi X

BiFi
BiFi
Jun 24, 2021 · 5 min read

Maximum leverage for yield farming and margin trading in one click with flash loans

TL;DR

  • BiFi X — A one-of-a-kind DeFi service that enables you to get maximum leverage with flash loans — is live on Ethereum
  • Get leverage up to 10X for yield farming and 5X for margin trading
  • Manage your positions and monitor your returns separately — no more confusing heaps of deposits and borrows
  • Get up to 90% discount on fees if you have BiFi in your wallet
  • You can try it now at x.bifi.finance

In this post…

  1. DeFi lending until now…
  2. BiFi X — DeFi lending of tomorrow
  3. How is it better?
  4. How does it work?
  5. BiFi Flash Loans

DeFi lending until now…

There are three main ways to use DeFi lending protocols:

  1. Deposit your asset to earn interest
  2. Deposit and borrow same asset to do yield farming
  3. Deposit and borrow different assets to do margin trading

For both yield farming and margin trading, users have to repeat the process of depositing and borrowing multiple times to reach maximum leverage.

While this is useful, it has obvious drawbacks:

  1. It’s repetitive — it can take 10 or more transactions to get leverage
  2. It’s expensive — more transactions mean more gas fees
  3. It’s confusing — once you have multiple positions open, all the deposits and borrows become added up — making it impossible to track how your position is doing and to close out positions

This has made it difficult for average user to begin leveraging (yes, pun intended) DeFi service like BiFi… until now.

Enter BiFi X.

BiFi X — DeFi lending of tomorrow

BiFi X can get you the maximum leverage in a single transaction using flash loans, instead of repeating depositing and borrowing ad infinitum. This is an entirely new application of flash loans to maximize and democratize the potential of DeFi lending.

How is it better?

  1. It’s simpler — anyone can do it with a few clicks with our intuitive UI
  2. It’s cheaper — one transaction is cheaper than multiple transactions
  3. It’s clearer — it was designed to track each position separately, so you can monitor the performances and close out positions one by one

Now, anyone can maximize their investment with flash loans and monitor their performance without any coding. We’re bringing the power of DeFi lending to everyone.

How does it work?

There are two main features on BiFi X: Earn and Bet.

Earn lets you maximize leverage for yield farming in a single transaction.

If you deposit 1 ETH, you can add 3 ETH in flash loans to deposit, and then borrow 3 ETH to repay the flash loan. You end up with 4 ETH in deposits and 3 ETH in borrows — earning BiFi rewards for 7 ETH worth, instead of 1 ETH you started with — getting 7x leverage.

Maximum leverage depends on each asset’s collateral ratio. With USDC, you can put in 100 USDC to end up with yield farming position worth 1040 USDC — that’s 10X+ leverage.

Bet lets you maximize leverage for margin trading in a single transaction.

Let’s say 1 ETH is trading at 1,000 USDT, and you believe ETH price will go up. You can deposit 1 ETH on BiFi, add 3 ETH in flash loans to deposit, borrow 3,000 USDT, swap USDT for 3 ETH on Uniswap to repay the flash loan. You have 4 ETH in deposits and 3,000 USDT in borrows.

If ETH price goes up to 2,000 USDT, you only need 1.5 ETH to pay back 3,000 USDT. You are left with 2.5 ETH worth $5,000. If you just held on to 1 ETH, that would be worth $2,000. In 100% price increase, you can net 250% in profit with leverage.

Both Earn and Bet requires BiFi X fee, a small amount paid in BiFi. As a token of appreciation (yup) to all our early supporters of BiFi, we give preferential discounts when you hold more BiFi in your wallet. It starts at 200 BiFi and goes down linearly to 50 BiFi when you hold 300K BiFi in your wallet.

Of course, you will also earn BiFi rewards for your deposits and borrows, increasing your returns even more and earning back the fees in rewards!

Learn how to use BiFi with BiFi X Guide: https://docs.bifi.finance/bifi-x/

BiFi Flash Loans

Flash loan is a DeFi-native service only possible on blockchains. It allows users to get uncollateralized loans that must be repaid within a single block. If it cannot be repaid, it reverts. Borrowers do not need any upfront capital, and it is risk-free for the lender.

Flash loans enable anyone to participate in the market to arbitrage between DEXs or liquidate any underwater collaterals, without any upfront capital. Although they have been used to maximize profit in exploits, the vast majority of flash loans are used to make the DeFi market more efficient. They democratize financial market-making, while increasing profitability for liquidity providers.

BiFi Flash Loans allows the liquidity in BiFi lending to be used for flash loans.

In terms of fees, we give preferential discounts to our early supporters holding BiFi tokens. It starts at 0.08% and goes down 90% linearly to 0.008% when you have 100 million BiFi in your wallet. As you earn BiFi rewards, you can hold more and more in the wallet, and pay less and less in fees.

It works a lot like Aave’s original flash loan. The documentation will be released next week.

Looking Forward

Flash loan will also be available….

BiFi began with the mission to create DeFi for all people and all blockchains. With BiFi X, we are taking a step to allow more people to enjoy the full potential of DeFi. In Q3, our next step will be multichain lending for BTC — enabling you to deposit BTC and borrow ETH, or vice versa.

We have a lot more planned — check out our 2021–2022 Roadmap to see where we are headed, and join our community to share your feedback.

Get leverage now at x.bifi.finance

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