Converter.Finance is a leveraged yield aggregator and leveraged liquidity provision protocol that helps users optimize DeFi yields. Users only need to deposit assets, and Converter.Finance will automatically find the highest-yield chain protocol to invest in to help them optimize the financial return rate, and increase leverage for their investment to maximize financial returns when the risk is low.
The main sources of yield include:
- Fundamental investment income, for example, adding LP will get a transaction fee commission reward;
- The token rewards of the yield farming, some investment or staking can get token incentives, and Converter.Finance will also get corresponding benefits;
- TDken incentives of Converter.Finance
Converter.Finance's token is $CON. The total supply is 48.8 million. Each block will produce 2.6 $CON. The production will be reduced by 7% every 30 days. Such reduction will suspend until each block generates 0.26 $CON. All tokens will be produced with the output of the block.
###Q4. What is the distribution of $Con?
The token distribution rules are as follows:
• 85% for motivating users to provide liquidity and for the ecological
governance DAO funds;
• 5% for early investors;
• 5% for foreign cooperation and operation;
• and 5% for the long-term development of Converter.Finance.
For the 85% liquidity incentive and DAO fund part:
- 6%-12% is used to encourage liquidity mining;
- The remaining part is used to encourage users to participate in staking and yield farming.
The DAO funds for ecosystem governance come from the output of liquidity
mining, which is similar to the collection of "mining taxes11. Since the first
reduction in production, 1% of the liquidity mining output is allocated to the
DAO funds. Every time the production is reduced, the percentage will
increase by 1% until it reaches 20%.
The DAO fund is an important way to realize ecological governance. Users
who hold $CON can participate in the ecological governance of Converter.
The use of DAO funds is initiated by the community and determined by
community voting. It can be used (including but not limited to) to encourage
community developers, provide services for Converter users, and all other
initiatives that are conducive to the development of Converter's ecology.
Users can get $CON as rewards by staking LP tokens, liquidity mining or leveraged liquidity mining on the official website of converter.finance. Please refer to the tutorial for specific operations.
As any other lending activity, Converter.Finance has its own risks. For nonleveraged liquidity providers (open positions at 1 time the price), users in this case face the risk of impermanent losses. For liquidity providers with leverage (open positions greater than 1 times), users also face the risk of impermanent losses, and the level of leverage will magnify impermanent losses.
When debt ratio = 100%, leveraged positions (greater than 1x) will be liquidated.
Users need to keep the debt ratio under 100% to avoid liquidation risks. Specific operations to avoid liquidation include: add collateral to repay loans, loans, and close positions, and automatically repay all debts.
- The platform charges 15%-35% of yields to repurchase $CON;
- According to different strategies, users will be charged a 0-0.2% transaction fee for withdrawal.
- Converter.Finance completely relies on smart contracts to automatically find highest yields that maximize returns, eliminating the inconvenience caused by manual operations；
- Leveraged liquidity mining strategy can bring more efficient investment income;
- Automated operation can save users network gas costs to a greater extent.
The Converter smart contracts have been designed from the ground up with security
in mind, by using as many audited components as possible. At present, Converter
has been audited by a well-known security auditing agency Fairyproof Tech.
We would like to thank Fairyproof Tech fortheir hard work on the audits.
Liquid mining is a very important innovation in DeFi, and we believe it will not disappear in a short time. The goal of Conveter is to help users to earn DeFi yields easily and efficiently. Converter.Finance launchess basic staking and liquidity mining strategy in the first phase, and will launch leveraged liquidity mining in the second phase.
Users only need to deposit assets, and Converter.Finance will automatically find the highest-yield chain protocol to invest in to help them optimize the financial return rate.