Farmers (borrowers)

Farmers or "investors" on Taurus borrow funds for leveraged yield farming in protocol strategies.

Users deposit iUSD or DJED into any of the strategies, and borrow via leverage to increase potential APY earned. Adding leverage is as simple as sliding the leverage bar to the desired amount

Entering into a Farm (vault) and earning yield is simplified. Users will be able to manage and learn about top vaults across Cardano in a single location, the Taurus UI

Where does the Yield come from

Yield comes from earning in the Farm you have deposited into based on your assets + leveraged assets. This includes real revenue from strategies.

Are there time limits for the Farms

There are no time limits for entering or exiting positions. There may be some strategies that depend on external protocol rules and restrictions (ie hedged positions with epoch based options)

Is my position an NFT?

Farming on Taurus gives you a tradable NFT representing your position. Each position is a unique combination of borrowed asset + strategy + initial collateral amount + amount borrowed + opening time, and thus needs to be represented as an NFT.

When you open a position, Taurus builds a wrapping NFT which form the basis of liquidity that is used for lending and borrowing.

How is the borrow APR calculated?

The borrow APR is based on a configured "interest rate curve / model" and the current % of utilization of the pool determines where on the curve - ie, what APR - is currently in effect.

The curve is the typical "1. base rate" + "2. a slowly increasing rate" until a certain "kink/point" (of utilization) is reached, then a "3. higher increasing rate" kicks in until 100% utilization to incentivize either more lending or less farming when a pool is over-utilized (so that lenders always have some free tokens to withdraw).

How do you determine loan health?

Loan health is calculated by comparing the users' position value with their total borrow value. If this ratio falls below a value of 1, their position can be liquidated.

Note that the liquidation factor must be taken into account. For iUSD/DJED it looks like: position value * 0.95 / borrow value (including interest)