As a user, you can participate in Rabbit Finance in 2 different ways:
Lender: Rabbit Finance allows you to earn returns on your base assets by depositing them into our vaults. These assets will then be offered to yield farmers for leveraging up their positions.
Farmer: As a farmer, you can earn a higher yield by opening a leveraged position on Rabbit Finance. Of course, this comes with bigger risks: liquidation, impermanent loss, etc.
At launch, we support 5 base assets BTCB, ETH, USDT, BNB and BUSD , and integrate our leveraged farming with MDEX and PancakeSwap
In this example below, we show how each participant works together in our ecosystem:
Cora, the lender deposits her BNB into our vault; his asset becomes available for a yield farmer to borrow; he earns returns for providing this liquidity.
Dunn, the yield farmer wants to open a leveraged yield farming position on the BTC/BNB pair; he borrows BNB from the vault and enjoys higher yield farming rewards.
Rabbit Finance's smart contract takes care of all the mechanics behind the scenes - optimally switching assets to the right ratio, providing liquidity to the pool, and staking LP for MDEX or PancakeSwap rewards.
For more Rabbit Finance Protocol details, please click👇