HODL
Last updated
Last updated
Hey there, Diamond Hand!
How are you feeling today, relaxed and comfy? We would assume so. You aren't worried about the market; everything is just noise. You know where this is going, have your winners, and you hodl on. It's just a pity that the degenerate activity of AI- and Memecoins can feel value-extractive, sometimes, right?
That is until DegenPrime.
On DegenPrime, you as a Diamond Hand, can deposit your assets so that you can capture some of this value too. By in the Savings Pools of DegenPrime, you facilitate the as they can borrow assets from the Savings Pools to boost their trading strategy and generate profits. You obviously don't do this for free, you get a variable interest rate for this. This way, you can grow your stack of precious assets, and the Degens can do whatever Degens do, as long as they pay up.
Deposit assets and receive yield - that's it
Your assets can be lent out. This is how you receive yield, and that's great! It also means that a portion of capital is lent out and unavailable to be withdrawn. To offer an appropriate risk/rewards for Diamond Hands, the encourages repayments by Degenerates or additional deposits. Degenerates can only borrow up to 92.5% of the total deposits of a pool. This makes sure not everything can be borrowed. Diamond Hands can, however, withdraw up to 100% of available capital.
The TLDR of this is: the lower the available capital, the higher the incentive to pay back loans or new deposits to come in to ensure available capital for withdrawals.
While your assets can be lent out to Degenerates, they will remain protected by the protocol due to its . This means that your assets will be used by Degens in their trading strategy to generate profits. At all times, bots will be monitoring the Degen Account of Degenerates to make sure loans can be repaid to protect your assets. If a Degen Account risks becoming insolvent, they will be liquidated.
For any Degen wanting to deposit in Savings and borrow against the deposit, you're in the wrong place. Any deposit here does not count as collateral, and borrowing can only be done in the . You can always choose to deposit your longer-term assets here as a hedge. If the borrow rates on the Degen Account are high, that means your assets in the Savings Side will earn high rates: hedge.