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Unparalleled Flexibility with Multiple Borrow Protocols Per Vault

A single vault's liquidity pool can be accessed via multiple, functionally distinct Borrow Protocols simultaneously. This dramatically enhances capital efficiency and use-case versatility.

  • Leveraged LP Token Protocol for Yield Amplification: This is a cornerstone feature for sophisticated liquidity providers, designed to maximize capital efficiency and potential returns from LPing. It allows users to:

    • Provide Initial Collateral: Users can either deposit existing Liquidity Provider (LP) tokens from integrated DEXs or deposit one of the underlying assets intended to form part of an LP pair.
    • Borrow Underlying Assets: Against the provided collateral, users can borrow one or even both of the underlying assets of the target LP token pair.
    • Execute Leverage Loops: The borrowed asset(s), combined with initial collateral, are used to form or augment an LP position. This new/augmented LP token can then itself become collateral for further borrowing (looping).
    • Granular Customizable Parameters: Vault creators define LTV ratios, liquidation thresholds, and debt ceilings.
    • Sophisticated Risk Management: Robust mechanisms monitor the health of leveraged positions, involving accurate valuation of LP token collateral and borrowed debt.

    The diagram below illustrates the flow of the Leveraged LP Token Protocol:

  • Position Protocol for Strategic Leverage and Margin Trading: The Position Protocol serves as a versatile tool for both general overcollateralized borrowing and, crucially, for facilitating on-chain margin trading. It allows users to:

    • Depositing Collateral: Users lock in accepted assets.
    • Borrowing Assets: They can borrow other assets against their collateral up to the LTV ratio.
    • Executing Leveraged Trades: Borrowed funds can be used on external DEXs to purchase more of the collateral asset or acquire other target assets.
    • Integrated Position Management: Yeap Finance provides tools for users to monitor the health of these leveraged positions.

    The following diagram shows the margin trading flow using the Position Protocol:

  • Flashloan Protocol for Atomic Operations: Provides standard uncollateralized flash loans that must be repaid within the same blockchain transaction. Features include configurable fees and support for multi-asset flash loan strategies.

  • Extensibility with Other Specialized Protocols: The architecture is designed for future growth, readily supporting the integration of new Borrow Protocols like NFT Collateral Loan Protocols, RWA Protocols, Fixed-Term Loan Protocols, and potentially Undercollateralized Loan Protocols.