Announcing Thorus and Impermax partnership — Get higher APRs with leveraged yield farming!
With the successful launch of both THO and STATIK, we are excited to announce even more good news! We have gained a new partner: Impermax! Impermax is a platform that gives one-click access to DeFi yield farming on Avalanche network with no risk of impermanent loss.
We believe this will not only generate massive yields of OVER 8M% APY, but also cross pollinate our investor communities to drive increasing volume levels. More on that below!
8M% APY you said? How is that even possible???
To understand how these magic numbers can be real, you need to understand what is Leveraged Yield Farming (LYF) and how it drastically increases APRs that are then converted into an APY metric, thanks to the auto-compounding function.
Little reminder :
APR: Annual Percentage Rate (ie: simple farming)
APY: Annual Percentage Yield (ie: farming with auto-compounding)
Let’s keep it simple! APY takes into account compounding, while APR does not.
➡ ️In short, rather than farming your Liquidity Provider tokens on the Thorus App, you will use these LP tokens as collateral to borrow both assets of this pair on the Impermax platform.
This will increase the size of your farming position by up to 4x and thus, your APY and profits will literally skyrocket, as Impermax will frequently claim and compound your rewards to increase your LP position even further, generating endless growth! 🚀🚀🚀
Looks terrific! But what is the risk then? 🤔
Usually, Leveraged Yield Farming, like every crypto or financial feature, doesn’t come without risks.
1️⃣ The first one is common to every LP farming and is called Impermanent Loss, but Impermax solves this problem by allowing risk-averse farmers to lend funds to risk-tolerant farmers! So it’s up to you to decide what kind of risk level you’re willing to take.
2️⃣ The second one is that your position can be liquidated if the value of your collateral strongly decreases and crosses the boundaries of the liquidation prices. But the good news is that Impermax will provide Thorus stable coin-based LPs. It is therefore unlikely that your position will be liquidated! 😊
I‘m a beginner, how does LYF work exactly?
Let’s say you want to operate the STATIK-MIM stable LP pool on Impermax with a leverage of x4 (note: leverage could even be x5 or lesser). As stable tokens, STATIK price is $1, and MIM price is $1 as well.
You provide Impermax some LP tokens you already created on the Thorus POOL section, say $1,000 worth of STATIK-MIM as collateral (500 STATIK and 500 MIM), and borrow from Impermax 1,500 STATIK and 1,500 MIM.
So, instead of holding $1,000 worth of tokens, you now hold a total value of $4,000 worth of tokens (2,000 STATIK and 2,000 MIM), thanks to the x4 leverage!
You can now let your LP position automatically and exponentially grow in the STATIK-MIM pool of Impermax, earning more STATIK-MIM LP tokens daily!
How? The Impermax protocol will claim your farming rewards several times a day, then sell those rewards to build more STATIK-MIM LP tokens, and finally the protocol will compound them to your current position to create a bigger one!
To fully understand how it works, let’s assume you want to close your position immediately after you opened it, without any gain. When you close your position, you owe the protocol 1,500 STATIK and 1,500 MIM (the amount Impermax initially loaned you).
Therefore, you will need to return these tokens to the protocol. Once it’s done, you will then withdraw the 500 STATIK and 500 MIM LP tokens you personally own (to simplify our explanation, we’re not taking into account the Impermax borrowing fee).
Now that you got the concept, the reality is that you will keep your position open for a long while, as the probability of being liquidated with a stable pair is close to zero!
Your position will then generate a HUGE amount of new STATIK-MIM LP tokens daily, thanks to the Impermax x4 leverage and its auto-compounding feature! And at some point, your loan will be paid off and your position will continue to enjoy exponential growth in your income thanks to incredible APYs! 🤑
Any numbers to provide about the Thorus pairs?
We currently have an average of 130% APRs on our STATIK-USDC.e/USDT.e pairs and over 500% on our STATIK-MIM pair.
To emphasize how drastic a difference farming with 4x leverage makes, if any of our current pairs began leveraged yield farming at 4x leverage, a daily compounded rate would return over 8M% APY, as we promised you above!
Eight. Million. Percent. Per Year. 🔥
How this will benefit Impermax:
A portion of our Treasury will be diverted to Impermax to increase their TVL, which will subsequently allow for more leveraged yield farming to generate significant yields — more mentioned on that below.
Impermax will integrate ThorusSwap as the platform’s designated exchange for leveraged yield farming.
Given our prior partners, such as Alpaca Finance and Eleven Finance, we have many investors who already use leveraged-yield farms on other chains. Since a large part of that audience has migrated to Avalanche to follow our launch, we have the capacity to bring additional users and subsequent volume into the Impermax platform — which will in turn fuel our Treasury through additional trading fees!
STATIK has proven to be stable even during the peak volatility movements of our launch.
We will use 8% of the total minted STATIK volume — which equates to 12.5% of the available investable collateral when considering a 20% redemption buffer and additional strategies — to fill Impermax with USDC.e. STATIK is our dynamically adaptable algorithmic/commerce backed stable coin. It has proven to be stable even during the peak volatility movements of our launch.
For example, it was able to handle more than a 50% drop from a 100% increase on the underlying backing within the first few hours after our launch, resulting in a move no higher than 1% to the downside and recovered within minutes. This in turn will allow for more leveraged positions to be established, under which we will receive additional volume based fees.
Furthermore, it is inevitable that some of this excess USDC.e will be used to generate yields on our STATIK pairs, in which case we receive the full benefit of our backing.
THO will also be available to LYF!
Impermax will also include our stable pairs and grant 5x leverage with a higher liquidation safety margin. THO will also be available to LYF! This will help drive rapid adoption rates of our products.
Since we will be providing additional USDC.e to their platform to allow for more leveraged yield farm positions, this will allow for higher returns on our platform and drive more volume through our swap.
Perhaps the most exciting feature is that THO and STATIK will also become lendable through this partnership, which results in another set of utilities for both!
Beyond this, a percentage of the THO and STATIK in our Treasury will also be lendable to drive additional yield performance on our capital, which inherently creates a positive feedback loop between fee generation and rising yields.
We currently have an average of 250% APRs on our STATIK-USDC.e/USDT.e pairs and over 500% on our STATIK-MIM pair. If any of our current pairs began leveraged yield farming at 4x leverage, a daily compounded rate would return over 8m APY.
This caliber of return will all but certainly drive substantial volume through both Thorus and Impermax — resulting in additional revenues for both platforms. Additionally, through this partnership, both Impermax and Thorus receive cross exposure to each project’s social presence, which will subsequently drive additional cross-pollinated adoption.
We are excited to begin this journey!
Impermax Finance gives one-click access to DeFi yield farming with no risk of impermanent loss. It is designed to let users become lenders and/or borrowers. Borrowers use LP tokens as collateral and use the borrowed funds to increase their liquidity providing positions.
Lenders have reduced risk compared to a traditional liquidity provider. Lenders can supply ERC20 tokens to any lending pool and earn interest paid by borrowers.
Borrowers have increased risk and reward compared to a traditional liquidity provider. Borrowers use LP tokens as collateral for loans. Those loans are used to acquire even more LP tokens. In this way, yield farmers can multiply their yield farming positions up to 50x. The protocol bundles many steps into a single transaction to save on gas fees.
Thorus is an all in one cross-chain DeFi Platform with an adaptable treasury system, and a token holder first approach. All protocol functions are designed to reinforce this mentality. Each feature is part of an ecosystem that continually drives value back to the THO token, benefiting holders and stakers above all.
The project also aims to be amongst the first AMM’s with Protocol Owned Liquidity (POL).
If you have any questions or thoughts, please join us on our social networks!