LP Target APR Archiver

LP APR Protection Mechanism

Earn as Expected Engine (E^3 / E cube)

The Earn as Expected Engine (E^3 / E cube) establishes a benchmark return for liquidity providers (LPs). This mechanism addresses the uncertainty of returns in traditional DeFi platforms, which can deter potential LPs from participating. By setting an expected return level, the AEE can attract more liquidity providers and ensure a healthier ecosystem.

Mechanism

If the actual return for an LP falls below the expected level, the PLP Return Protector provides additional compensation (Emission) to bridge the gap. This feature reassures LPs that their investments are safeguarded by the auto engine, promoting a more stable and predictable return on investment. As a result, more users may be incentivized to become LP providers, supporting the platform's liquidity and overall sustainability.

$$Max(0, target APR - real yield LP APR)$$

Benefit

1. Automatic Yield Adjustment

The E^3 Engine automatically adjusts yield rates for liquidity providers, stakers, and borrowers based on real-time market conditions. Users can monitor current yield rates through an intuitive dashboard, helping them make informed decisions about their participation in the platform.

1. Platform Stability

By continuously monitoring and adjusting yield rates, the E^3 Engine contributes to the platform's stability and resilience, ensuring a reliable experience for users.

1. Simplified Experience

The E^3 Engine automates yield optimization, allowing users to focus on their preferred activities while the engine optimizes their returns in the background.