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Apricot: leverage mining and liquidation prevention platform to enhance capital efficiency

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A good DeFi protocol should itself be a tool for integrating and managing risk for users. Given that most "real" users tend not to have a deep understanding of DeFi's philosophy and complex beauty, the DeFi protocol is really charged with subtracting ever

Make the Risk Under Control

Originally written by Republic VCs

The Apricot team and I agree that a good DeFi protocol is itself a tool for integrating and managing risk for users. Given that most "real" users tend not to have a deep understanding of DeFi's philosophy and complex beauty, the DeFi protocol is really charged with subtracting everything.

Apricot is a Solana-based lending protocol created by a group of top Wall Street financiers. In addition to the basic lending function, I think the "X-Farm" and "Apricot Assist" designs by Apricot are also worth writing about.

"X-farm" is the first product on the market that allows full-position leveraged mining without requiring users to exchange collateral for leverage. Normally, liquidity mining requires users to deposit liquidity pairs as collateral, for example, if a person wants to provide liquidity for USDC/USDT trading pairs, he needs to sell BTC in exchange for staboins.

Currently, The x-Farm provided by Apricot allows users to borrow stable currency for liquidity mining. It also allows users to use SOL for liquidity mining of stable currency in Sabre/Orca. In summary, with x-Farm, everyone can maximise the return on their portfolio without necessarily buying or holding the assets they want to provide liquidity.

Another exciting feature on Apricot is "Apricot Assist", which is a powerful tool for users to prevent clearing by setting "trigger quotas" and "clearing quotas". When the collateral price falls and the loan amount rises to the "trigger price", Apricot Assist automatically deleverages it until it aligns with the settlement amount, although this deleveraging may not be fully reflected in the price change.

Assist will automatically redeem LP assets and then repay the loan in case the user loses the collateral. In other words, even if the price of the collateral falls quickly, the system can prevent users from running out of collateral to liquidate. To achieve this function, not only strict protocol design is required, but also blockchain performance support. This is why Apricot chose to develop on Solana.

Simply put, Apricot provides users with an easy and elegant stack of integrated tools that allow them to better manage their benefits and risks. And it's all based on borrowing.

After the test network runs successfully, Apricot will soon start the main network. Those interested can visit Apricot.one to learn more and participate in the apricot. one test.

To be sure, the DeFi market is not yet mature and there are still treasures to be discovered.

DeFi's original intention was to empower people who could not use traditional banking services and reduce financial friction (though few people say that anymore). Today, the various DEFIS seem complicated, but lack much to say. In finance, complexity and leverage mean risk, and risk means tread carefully.

As I mentioned at the outset, projects should provide users with an easy-to-use integration tool to help them manage risk. Finally, I'm happy to see the team at Apricot provide us with such a tool and investment opportunity.