Strategies
The Amplifier's strategies determine the allocation of rewards earned from participating in the Stability and Staking Pool, as well as how to manage one's collateral. By pre-defining compounding targets for each component, Amplifier can condense multiple transactions into a single event that it executes for end-users. These strategies can be run manually, or by letting Amplifier do it for you on auto-pilot.
It's important to note that implementing a strategy is not mandatory. Amplifier grants full access to the standard functionalities of EARN Protocol and Liquid Loans, operating as a front end and allowing users to execute transactions at their discretion.
PULSEX / PULSE STACKER STRATEGY:
This strategy utilizes the growing value of collateral in a Vault ($PLSX) to acquire more tokens and increase one's vault size. If the price of $PLSX rises over time, thereby increasing the collateralized percentage, more $PXDC Stablecoins are minted to the user's predetermined collateralized ratio, enabling them to accumulate more $PLSX to add to their Vault position.
Deposit $PLSX collateral into a Vault
Mint $PXDC to your predetermined collateralized ratio - 1000% collateralization ratio is recommended as this ratio can withstand up to a -89% drop in $PLSX price reducing the risk of liquidation to a user.
The minted $PXDC is swapped on PulseX (decentralized exchange) into $PLSX and deposited back into the Vault to increase your position.
If the price of $PLSX rises above the predetermined collateralized ratio, the strategy involves minting additional $PXDC and repeating the process. For instance, if the user has a 1000% collateralized ratio and it increases to 1010%, they can repeat the process to further grow their position in the Vault.
It's important to note that when employing this strategy, it's advisable to maintain a healthy collateralized ratio to prevent the possibility of liquidation. In this strategy, the $PXDC minted from opening a Vault is sold for $PLSX on the open market. However, if the user's Vault becomes undercollateralized and is put up for liquidation, they may not possess the $PXDC required to repay their loan and increase their collateralized ratio.
MAILBOX MONEY STRATEGY:
This strategy involves using the Stability and Staking Pool to earn rewards. Half of the earned rewards are reinvested to compound the current position, while the remaining half is retained by the user for their discretion.
Deposit $PXDC into the stability pool to earn $EARN token and $PLSX
Claim $EARN rewards – stake 50% in the staking pool – retain 50% for user discretion
After $EARN has been staked, claim staking pool rewards - $PXDC and $PLSX
Stake earned $PXDC from the staking pool into the stability pool
Retain claimed $PLSX for user discretion
Repeat
HALF & HALF STRATEGY:
The Half & Half strategy utilizes the rising value of $PLSX in a Vault to mint more $PXDC stablecoins for staking in the Stability Pool. The returns earned from the Stability and Staking Pool are then utilized to raise the Vault's collateralization ratio and maximize exposure to the Staking Pool.
1000% Collateral is suggested as it can withstand a -89% drop in $PLSX price.
(It's essential that users exercise their own discretion when collateralizing an asset to reduce the risk of liquidation.)
Deposit $PLSX collateral into a Vault
Mint $PXDC to predetermined collateralized ratio (for this example we will use 1000%)
Stake $PXDC into the stability pool
Claim $EARN and liquidation rewards in $PLSX for participating in the stability pool.
Deposit $PLSX rewards claimed into your vault to increase collateralization ratio.
Stake claimed $EARN in the staking pool to earn $PXDC and $PLSX as staking rewards
Claim staking pool rewards, deposit $PXDC into the stability pool and $PLSX into Vault.
Every time the collateralization ratio increases to 1010% in the Vault, take another loan and repeat the process.
It's important to note that the $PXDC minted when opening a Vault in this strategy is not sold but retained and staked in the Stability Pool. In case the Vault position becomes undercollateralized, the user can repay all or a portion of the $PXDC loan/debt by unstaking the tokens in the Stability Pool, which prevents the Vault from being liquidated.
PASSIVE PULSE STRATEGY:
This strategy involves utilizing Staking Pool rewards to gradually build up a smaller Vault position.
Acquire $EARN tokens to stake into the Staking Pool
Claim staking rewards in $PLSX and $PXDC
Swap $PXDC for $PLSX on PulseX
Deposit all resulting $PLSX into your Vault, or into your wallet to accumulate enough $PLSX to open a Vault if you are starting with less than the minimum collateral required.
Custom Strategy
The Custom Strategy allows you to create your own personalized strategy based on the functionalities provided. Custom strategies direct the actions taken whenever you Compound within Amplifier. Any combination of the Trove/Vault, Stability Pool and Staking Pool can be linked together.
Trove/Vault compounding targets
Swap newly minted stablecoins to the collateral coin and top up the vault balance
Mint new stablecoins and deposit to the stability pool
Swap newly minted stablecoins to the staking token and deposit into the staking pool
Route a specified percentages of the newly minted stablecoins to any combination of vault, stability pool or staking pool.
Stability pool compounding targets
PLSX to wallet / EARN to wallet
PLSX to vault / EARN to staking pool
PLSX swap to PXDC to stability pool / EARN to staking pool
Staking Pool compounding targets
PLSX to wallet / PXDC to wallet
PLSX to vault / PXDC to stability pool
PLSX swap to PXDC, all PXDC to stability pool
PLSX and PXDC swap to EARN, all EARN to staking pool
PXDC swap to PLSX, all PLSX to vault
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