High volatility assets: LINK.e, and QI
Total APY of 1000 LINK.e:
The final APY for this strategy is 9.2145%. The total APY is subject to change due to market conditions.
*(For the sake of this example, we will use LINK.e, that said, users are free to select any other listed assets as collateral)
**(We strongly suggest AVAX for the borrowed/farming asset owing to the current APY%)
2. Select Vector’s AVAX pool. Execute the position.
Use “Auto Borrow” to increase your capital efficiency:
1. Drag and drop your Loan (BENQI) and Farm position (Vector).
2. Set the “Target Collateral Ratio” to 50.625%, “Auto Borrow Limit” to 45%, and “Duration” to 12H, “Max Deposited” no maximum, and “Automation Level” to fully automatic. Then, submit the task.
Use “Auto Repay” to prevent liquidation.
1. Choose your two positions on BENQI and Vector.
2. Set “Target collateral ratio” to 50.625%, “Auto repay threshold” to 57.5%, and enable “fully automatic”. Then, submit the task.
1. Select your lending position on BENQI. Set the “triggering collateral ratio” to 62% and the “target collateral ratio” to 50.625%. Then, submit the task.
Enjoy 9.2145% APY with your LINK.e on CIAN.
1. **Smart contract vulnerability
**This strategy interacts with three protocols: BENQI, VECTOR, and CIAN. If one of these protocols was to get targeted by an exploit, it may result in a loss of funds.
**CIAN’s “Auto Repay” and “Flash Repay” can protect users’ lending positions from liquidation under most market conditions. However, CIAN’s automation primitives couldn't protect users’ position in case of an extreme market crash (eg. LUNA).
3. **Collateral reduction
**If “Flash Repay” is executed at the triggering collateral ratio, though your position would avoid getting liquidated, part of your collateral would be transferred to your borrowed assets to reset the TVL.
**Deposit fee and withdraw fee on Vector
**Since Vector is mainly using PLATYPUS’ pools, deposit fees and withdraw fees may apply depending on the Coverage Ratio. Learn more: https://docs.platypus.finance/platypus-finance-docs/concepts/deposit-fee