Lending has long been a staple when it comes to DeFi and it doesn’t seem like this will stop anytime soon. The latest generation of lending markets have put the points meta to great use, using the prospect of potential points earnings to reward desired behavior, including depositing certain assets, borrowing, etc. Options on the Blast network encompass all of these above attributes, giving users of the chain plenty of places to put their assets to work.
In this edition, we’ll go over a couple of key protocols on the chain, in Juice Finance and Orbit Protocol. At this current point in time, Orbit Protocol leads the pack when it comes to TVL, with nearly $300M deposited, in addition to having a live token in $ORBIT. Juice Finance has notably also already launched its token, $JUICE, currently commanding a ~$132M FDV. $ORBIT is also live, though the protocol is currently valued at an FDV of ~$40M.
Stay alert in these markets ⬇
Orbit Protocol
Orbit Protocol is a money market on Blast, leveraging the native yield capabilities of the chain. It is an open-source and non-custodial decentralized liquidity protocol designed to enhance the lending and borrowing experience on the Blast network by leveraging Blast’s native yield. Lenders supply assets to earn additional yield, receiving Orbit Assets (oAssets) which embody both the principal and accrued yield over a lending period. These oAssets can later be redeemed for the initial principal plus the yield, simplifying the yield collection process.
Users looking to borrow can do so by offering supported Blast assets as collateral within the protocol’s loan-to-value (LTV) ratio guidelines. Orbit introduces a novel approach by utilizing native yield from lender assets and collateral to accumulate to the $ORBIT token. This is accomplished in a few main ways;
Open Market Purchases; Blast native yield is used to purchase $ORBIT on the open market via DEXs. This buy pressure of course competes with the native staking inflationary rewards.
Supply Removal; Another portion of the native Blast yield is used to simply remove $ORBIT from supply via burning, reducing the amount of tokens in circulation (without accounting for emissions). This buy and burn pressure grows greater over time, linearly increasing to 100% of Blast native yield going to this initiative over a 4 year period.
$ORBIT also acts as a means to advance future yield value to the present, benefiting both lenders and borrowers by subsidizing the yield through token distribution (inflation/ emissions). Those who lend, borrow, and stake $ORBIT will receive 20% of the protocol’s Blast Gold. Stakers already will receive rewards up to 500% APY, denominated in the $ORBIT token, in addition to a boost in Blast Gold. Staking rewards are in alignment with how long a user opts to stake their tokens for, up to 4 years as a maximum amount to achieve the 500% APY figure. Upon specifying a time period to stake for, no $ORBIT withdrawals are possible on Orbit. The token’s max supply is 100M tokens, with distribution as follows:
Juice Finance
Juice Finance is an undercollateralized lending protocol on Blast. It differentiates itself by offering cross-margin lending capabilities that allow for up to 3x leverage on $ETH collateral. This leveraged approach not only magnifies potential returns for users but also grants them access to a broader range of rewards and airdrops opportunities across the Blast ecosystem. Rewards are prevalent across Blast lending projects, or any projects on the chain for that matter. Juice emphasizes their offerings of ‘more yield, points, airdrops, & rewards’. Being the premier destination for yield optimization and points farming is the self-stated core vision of the protocol.
Juice’s seamless integrations with external protocols facilitate a broad spectrum of trading and farming activities, thus enhancing capital efficiency and promoting open-source collaboration within the Blast ecosystem. This is in a sense similar to the offerings of Gearbox, which may be an apt comparison to describe what Juice Finance brings to the table. Users can access leverage upon their deposited funds, and use this to farm various protocols within the Blast ecosystem. The platform supports various activities, including:
Lending
Users can deposit either $USDB or $WETH to earn a passive APY. Both $USDB and $WETH are passive deposits and don’t need to be managed. It should be noted that depositing into the Lending pool doesn’t allow users to borrow against this collateral. Lenders play a key role within the platform, as they enable other activities on the protocol to be possible by providing necessary liquidity.
Borrowing or Looping
Users can loop $WETH or LRTs up to 3x. $WETH is initially used as collateral, with borrows denominated in either $USDB or $WETH. Borrowing and looping strategies on the platform make use of other integrated protocols. After borrowing, funds can then be deployed into Juice Finance’s various vaults/ strategies (Farming).
Farming $USDB or $WETH
Farming is done via JUICE vaults with integrations with Thruster, Hyperlock, Particle, and Wasabi.
Farmers or users of the vaults can choose a strategy of their choice based on risk appetite, desired yield, etc. These options allow users to maximize their yield, rewards, and points accumulation. The protocol ensures a comprehensive optimization of returns for all participants while maintaining lender security through effective collateral liquidation processes and a dynamic interest rate model.
Despite not operating as a trading platform or managing its own order books, Juice’s seamless integrations with external protocols facilitate a broad spectrum of trading and farming activities, thus enhancing capital efficiency and promoting open-source collaboration within the Blast ecosystem as a whole.
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