Interpretation of ForTube Farming: How to Improve Capital Utilization and Liquidity?

The rise of the DeFi concept has given birth to a more inclusive, transparent, and open digital financial system. For projects and users in the DeFi ecosystem, fully utilizing every part of their funds and seeking to maximize returns is a common goal.

Currently, liquidity mining and yield farming models are becoming increasingly popular, with users locking their assets into smart contracts to obtain expected returns. However, in this process, users temporarily lose the liquidity of their locked assets and may fall into the dilemma of impermanent loss.

If we define the Asset Utilization Rate as the proportion of the amount of funds that can flow freely and generate effective returns to the total locked amount (TVL), then undoubtedly, improving the asset utilization rate guides the innovation and iteration direction of DeFi projects.

As a forward-looking new DeFi product, ForTube has launched the fully upgraded ForTube V3 version.

This version has passed security audits by PeckShield and has made significant improvements in four areas: asset security, platform governance, system risk control, and community building, while also providing users with more ways, higher returns, and more flexible value capture opportunities. The launch of ForTube V3 marks ForTube's evolution from a simple liquidity pool lending protocol to a comprehensive digital asset bank.

At the same time, the upcoming Farming module will release the liquidity of LP Tokens that meet risk control rules, helping users obtain higher aggregated returns.

（Aggregated mining schematic, for reference only）

The workflow of ForTube Farming is as follows:

1. Users lock LP Tokens supported by ForTube into the Farming module and authorize ForTube to implement the aggregated yield strategy.
   Currently, the ForTube Farming module supports 8 LP Tokens: FOR-BUSD, CAKE-BNB, BUSD-BNB, BTCB-BNB, ETH-BNB, BETH-ETH, USDT-BUSD, USDT-BNB.

2. Users will not only receive the expected returns from the LP Tokens but will also obtain a staking asset position vLP corresponding to the value of the LP Tokens;

3. In the ForTube innovation zone, based on the obtained staking asset position vLP, users can borrow target assets and invest them in other projects to earn returns.
   

Example:

After the ecological token FOR of ForTube was launched on PancakeSwap, both parties initiated a joint mining activity for the FOR/BUSD trading pair. Users holding FOR can deposit an equivalent amount of FOR and BUSD into the corresponding liquidity pool to obtain the corresponding LP tokens. Users can then deposit these LP tokens into the designated LP pool to receive mining rewards settled in the token CAKE (currently with an APY of about 180%).

If users choose to deposit these LP tokens into ForTube Farming, they can still receive the expected APY mining rewards while also obtaining a certain staking position vLP. Users will be able to borrow specified currencies (such as FOR and BUSD) based on vLP in the BSC innovation zone.

Essentially, Farming provides an additional flexible borrowing limit while ensuring users' original expected returns, releasing some liquidity of locked assets, thereby improving the asset utilization rate: users can implement other yield strategies, such as leveraged trading and other financial derivatives.

Note: The value of LP Tokens may fluctuate with the price of the coins, and users borrowing against these staking assets may still face liquidation issues.

Currently, ForTube is in discussions with relevant project parties to gradually introduce real-world assets into the ForTube protocol, allowing users to not only obtain expected returns from digital asset investments but also access the diversity of real-world assets.