Earning Yield
Explanation of Yield Generation At Flasharb, users can earn yield through a variety of mechanisms, primarily by participating in arbitrage opportunities and liquidity provision. The protocol identifies price discrepancies across different decentralized exchanges (DEXs) and facilitates transactions that capitalize on these differences, allowing users to benefit from the resulting profits.
Arbitrage Strategies Flasharb employs advanced algorithms to monitor market prices in real-time. When a price difference is detected, the protocol executes trades that allow users to benefit from this arbitrage opportunity. Users can participate in these strategies by:
Depositing Assets: Liquidity providers can deposit their assets into Flasharb’s liquidity pools, which are then utilized to execute arbitrage trades.
Automated Trades: The protocol automatically handles trade execution, ensuring that users can capture profits without requiring constant monitoring of the market.
Liquidation Mechanism In addition to arbitrage, Flasharb also implements a liquidation mechanism for undercollateralized loans across lending platforms. When a loan becomes undercollateralized, Flasharb automatically liquidates the asset, allowing users to earn a portion of the fees generated from this process. This mechanism not only benefits liquidity providers but also helps maintain the stability of the ecosystem.
Fee Structure Flasharb charges a small fee on profits generated from arbitrage and liquidation strategies. This fee is distributed among liquidity providers, ensuring that they are rewarded for their contributions to the protocol. The fee structure is designed to incentivize participation while maintaining a sustainable model for long-term growth.
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