Welcome to PembRock Finance PembRock Finance is the first leveraged yield farming protocol built on the NEAR blockchain, providing: Stable and secure returns for lenders. Loans for yield farmers, who can leverage their existing holdings by up to 3x for greater returns. Staking for governance voting as part of our DAO. Rewards for early adopters. Clear and informative how-to and strategy guides to help you educate yourself and get the most out of leveraged yield farming.
Risks Knowing the risks for both lending and leveraged yield farming means you can get the most out of our platform. Take a look through our two documents before you start.
Risks for Farmers The level of risk when engaging in leveraged yield farming depends on both the tokens that are involved in the pair and also the amount of leverage that a farmer takes advantage of.
Impermanent loss Impermanent loss is a risk that comes up every time someone provides liquidity to a liquidity pool. It is to do with the need to keep the dollar ratio of assets in a pool the same at all times, meaning that if one token goes up or down while another stays relatively stable (or moves in an opposite direction), the pool has to be rebalanced.
This changes the proportion of your tokens in the pool and can lead to a loss compared to if you just held the two assets. Impermanent loss is indeed a risk but can be mitigated by the yields gained from providing the funds to the liquidity pool.
Liquidation Liquidation occurs when a farmer’s leveraged position suffers from impermanent loss, taking on more debt than can be covered by the value of the initial investment. The risk of liquidation rises in line with the amount of funds leveraged, as is shown in this table. The more funds that are leveraged, the bigger the risk should a token in the pair fall. Having debt that cannot be covered by the farmer’s initial investment brings liquidation.
Negative APY Negative APY is a risk that occurs when the borrowing interest rate is higher than the yield generated from farming with leverage. With debts growing faster than the gains that are made, this could trigger liquidation if not properly monitored.
PembRock Finance has been created by experienced blockchain builders, and will gain an external audit before launch, making sure that the smart contracts employed in our leveraged yield farming protocol are watertight! Update: Temporary Corner Cases Having just launched and handling the transactions of many users, some have experienced corner cases, including: Temporary inoperability or the freezing of funds Gas usage errors
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses a considerable risk of loss. The speaker does not guarantee any particular outcome.
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