(de)Centralized systems

Power corrupts. The more power one or a few people in a system possess, the more prone this system is to corruption and short-term decisions. At the same time, the wisdom of the crowd theory teaches us that decisions made by a large group of non-experts tend to have better results than decisions made by one or few experts. This is one of the benefits of decentralization.

Additionally, reducing a workforce (read: bankers) to a code-based system, severely lowers costs for users of this system. All in all decentralization brings:

• Less corruption

• Better decision making

• Lower operating costs

Creditless

For this reason DeltaPrime works completely decentralized and code-based. Everyone with a MetaMask account and funds for gas can create a Prime Account or deposit funds. There is no single person in DeltaPrime who can refuse this access to liquidity. DeltaPrime does not check whether you are "credit-worthy", nor do we have any humans assessing this. Instead, our safety measures come in other, fully decentralized forms.

Additionally, unlike centralized brokerages, we do not hold your tokens. Although the Prime Account has an interface as easy-to-use as any centralized project, the tokens are instead held in a Dedicated Smart Contract, which you are the sole owner of. Every single action performed is stored on the blockchain, which you can track through your history.

Suspension of withdrawals

In recent times, multiple trust-based, undercollateralized lending protocols have gone insolvent. Through fund misappropriation, bad decision-making, and adverse market conditions, tens of thousands of loans defaulted. This led to depositors everywhere losing access to their funds. DeltaPrime prevents this by keeping borrowing trustless. A dedicated smart contract (DSC) prevents fund misappropriation through a walled garden; should bad decisions lead to the default of a Prime Account, the DSC will automatically repay the loan. Because the code is open source, you can see the exact rules every DSC is following. In doing so, we ensure loan repayment for depositors, preventing the need for withdrawal suspensions other undercollateralized protocols have had.

Apart from a lack of need, any (re)deployment of code to the network has a 24-hour timelock, giving our users time to adapt to the updates where necessary.

DAO

DeltaPrime is on the road to becoming a fully Decentralized Autonomous Organisation (DAO). During the first few years of development, every decision was made by the development team. Community interests are protected by security mechanisms like multisig & timelock, as well as many audits protecting users from any centralization risks.

Since early 2024, the community gets involved more in major decisions through our Discord. The LTIP proposal for example, was drafted up fully based on community concensus. On July 1st, 2024, governance power will come into play, allowing users to quantify their stake in the DeltaPrime platform, and exert even more influence on the decision making process. Over time this influence will increase to the community having full autonomy in DeltaPrime's decision making process.

As DeltaPrime grows into a DAO, this page will be further updated.

Unique to DeltaPrime is its Diamond Beacon Proxy pattern. This pattern allows us to:

• Rapidly scale the protocol

• Infinitely scale the protocol

• Reduce setup costs

Diamond Beacon Proxy Pattern

The Deployment of Dedicated Smart Contracts is one of the core innovations of the DeltaPrime protocol, essential for providing undercollateralized loans. Deploying these logic filled contracts would normally be an expensive operation. An additional challenge would arise when trying to add integrations to DeltaPrime, as these contracts would be unable to interact with newly implemented features. These challenges are overcome by the use of a beacon proxy pattern. Instead of redeploying the same smart contract over and over again, one "blueprint" (beacon) smart contract is deployed to the network. This contract contains all necessary logic and integrations. Prime Accounts use this contract to perform any logical operations, at the same time being able to keep their state separated. This state holds all personal information of the Prime Account, like the tokens and stakes. This solution is cheaper than deploying all of the contract logic for every Prime Account. It also allows for upgrading contracts, enabling users to interact with new integrations when they are deployed to DeltaPrime. This is what makes DeltaPrime future-proof.

This video from DeltaPrime cofounder Kamil Muca explains in-depth what this pattern is, the benefits it provides, and how it works.

Safety First

The safety of your funds is our number one priority. While at times we might skip today's shiny thing (sorry point collectors), this focus on security, combined with continuous expansion, allows us to be where we are today, and safeguard we will still be here tomorrow.

Of course, while we make every effort to ensure protocol safety, protocol risks are existent in every protocol. The below mentioned safety measures are put in place to mitigate these risks where possible.

Should you, in spite of our overwhelming security measures, find a potential vulnerability in our codebase, we urge you to take part in our bug bounty program, with rewards up to $100,000.

DeltaPrime is a trustless borrowing platform on Avalanche and Arbitrum. Depositors can lend out funds by depositing an asset into one of the liquidity pools (eg. $AVAX or $ARB). Borrowers can then borrow these assets for which they pay interest. The interest rate is dependent on supply and demand of that asset.

Borrowers of these pools can invest borrowed funds, together with their full collateral, in a multitude of DeFi protocols. While borrowers can be liquidated if they lose too much value, they can also reap bigger rewards by making good investments. Depending on the strategy borrowers set up, they design their own Risk/Reward.

What makes DeltaPrime's architecture unique is the ability to liquidate funds, independent of the protocol they are in at that time. Borrowed assets are sent to a personal, dedicated smart contract, instead of a personal wallet. See it as an escrow smart contract. While the borrower is solely in charge of this smart contract, it allows the protocol to protect the funds through liquidation if necessary.

This method is very similar to a margin account.

But here, you can use all funds in the account, cross-margin, across a range of DeFi protocols.

The current lending system is broken.

Traditional lending systems like banks rely on trust and credit checks to ensure loan repayment. When that trust is broken, everyone feels it. This type of lending suffers from:

• Lack of transparency

• Tedious credit checks

• Asset mismanagement

Trustless lending platforms like Aave / Radiant rely on locking high amounts of collateral to ensure loan repayment. This locked liquidity is trapped, harming the chain the platform is in. This type of lending suffers from:

• High borrow rates

• Low deposit rates

• Capital stagnation

Prime Brokerage solutions (read: DeltaPrime) rely on keeping access to borrowed funds to ensure loan repayment. While a borrower can use and profit from their collateral and borrowed funds to use in other DeFi platforms, funds are always accessible by an automated escrow smart contract. This ensures trustless loan repayment, without the need for credit checks. This leads to:

• Trustless lending

• High deposit rates

• High capital efficiency

What is DeltaPrime?

DeltaPrime is a decentralised borrowing and investing ecosystem, unlocking trapped liquidity on the chains it operates on. On DeltaPrime users can easily deposit and borrow funds to increase the power of their usual DeFi investments. The minimum collateral ratio for these loans is 20%.

Borrowed funds can be used to invest in integrated protocols. Every platform can be integrated as long as they are safe and liquid.

Why DeltaPrime?

Every year, tens of billions of dollars worth of assets are locked in lending platforms. The vast majority of these funds are locked as collateral, providing little to no value to the crypto community. DeltaPrime returns these funds to the hands of her users. This benefits borrowers, depositors, and integrated platforms alike.

When you borrow on DeltaPrime you get:

• One DeFi account

• Empowered returns

• No credit checks

When you deposit on DeltaPrime you get:

• Trustless depositing

• High Real Yield

• single asset exposure

When you get integrated on DeltaPrime you get:

• Cashflow

• TVL

About this documentation

Note that DeltaPrime is a constantly evolving protocol, leading to elements of the docs potentially being outdated. For updated information on protocol progress we refer to the announcements in our Discord.

Protects

Prime accounts separation

DeltaPrime is a fully decentralized application. This means that nobody else holds custody over your (borrowed) funds. You don't have to entrust any party that your assets are there, but can instead can look it up on chain in your personal Dedicated Smart Contract (DSC).

As the name suggests, the DSC is a smart contract: it is on-chain and follows predefined rules visible to everyone. It is dedicated, because it is yours and yours alone. When you open your Prime Account, the DSC gets created and all funds you deposit and borrow get sent to this account, where it is visible on-chain by clicking the link in the far top right of your Prime Account. Every Prime Account user has his own DSC.

The first security advantage of the seperation of Prime Accounts is that it protects your funds from commingling, something that can happen when you hand of custody to a centralized party (insert FTX flashbacks).

A second advantage is that it gives attackers a hard time gaining access to funds. Instead of one giant safe in the bank protecting everyone's funds with a single door, every account is its own little solid safe. And with thousands of Prime Accounts, gaining access to all funds is a hard nut to crack.

Protects

Solvency checks

If the health of your Prime Account drops to 0% (as explained here), your account will be deemed insolvent. An insolvent account will be partially liquidated to bring it back to a solvent state. This is mainly dependent on the ratio between borrowed assets and collateral. There are multiple reasons this could occur. A drop in the price of collateral assets, or an increase in the price of borrowed assets are the most frequent reasons for liquidation.

But what happens if you accidentally borrow more than your account can support? Or if you pay so much for slippage it turns your account insolvent? Or what if you accidentally swap too much to an asset with lower borrowing power?

DeltaPrime's solvency checks protect you from accidentally turning your account insolvent. Whenever you initiate a transaction, the protocol automatically checks the solvency of your account post-transaction. Does this leave your account insolvent? Then the transaction is reverted, and it will be like you never initiated the transaction in the first place. In the on-chain explorer, it will show that the transaction was reverted with the following error message:

The action may cause an account to become insolvent

Additionally, borrowing can be done down to a minimum of 10% health. This is done in order to prevent rapid price swings immediately liquidating your newly borrowed position.

Protects

Protocol gatekeeping

Protects

Withdrawal guard

The Withdrawal guard is DeltaPrime's security powerhouse. Unique to DeltaPrime, it allows you to withdraw if, and only if, you have all your borrowed assets available in your balance. Next to the liquidation bots, this is DeltaPrime's strongest safety feature. In other liquidity protocols, if you can successfully manipulate the (perceived) price of a token, you can borrow and withdraw the rest of the liquidity on that platform, creating bad debt for the liquidity protocol in the process. A "highly profitable trading strategy".

DeltaPrime's withdrawal guard is an extra line of defense against such an attack. By only allowing withdrawals when the Prime Account owns the nominal number of tokens indebted to the protocol, inflating the "value" of a token becomes futile.

Example:

Jane has deposited $30 USDC and borrowed 10 AVAX worth $10 each. Every other security measure fails simultaneously, and Jane manages to trick DeltaPrime into believing one AVAX is worth $0. Jane expects she can withdraw all borrowed AVAX (valued $100), as her debt seems to be $0. Theoretically, she could repay her borrowed amount, right?

The withdrawal guard kicks in: Jane tries to withdraw her borrowed AVAX and sees a message popping up: She needs to keep 10 nominal AVAX in her Prime Account in order to withdraw any funds. Jane borrows more, swaps, LPs and farms away, but until she has the nominal amount of tokens equal to the tokens borrowed, there is no way she can withdraw. She can only withdraw when the protocol is sure that she can repay her debt. Not theoretically, the exact funds should be there.

The withdrawal guard is a powerful tool that protects the protocol from bad debt, even in black swan events. For a borrower, this manual disassembling of your carefully created portfolio can feel restrictive, and are actively looking into solutions like a flash-repay function, which would automate this process for you.

How to solve

Protects

Token-specific borrowing power

Global Token Cap

Another way that tokens can be introduced is with a max Global Token Cap. This number defines the maximum amount of exposure DeltaPrime can have within all Prime Accounts. Thus, if the global cap on USDC would be 500K, and one user deposits 250K USDC from his wallet, and another user borrows 250K USDC from the lending pool, the global cap is reached and no new actions can be taken to further increase protocol exposure to USDC.

Protects

What are liquidations

Undercollateralized loans are usually based on trust. Lenders do a credit check and hope the loan gets paid back. Whenever that trust gets violated, this has consequences as seen in 2022. For this reason overcollateralized protocols, like AAVE, although inefficient, focus on providing trustless loans. They are able to do this by liquidating loans as they near insolvency.

With DeltaPrime we are evolving this system, combining the best of both worlds: the capital efficiency of protocols like Goldfinch with the trustlessness of protocols like AAVE. Liquidations are one of the main security measures of DeltaPrime. It ensures that loans can be safely repaid. If the collateral ratio of a Prime Account hits or drops below 20%, part of the borrowed funds get liquidated. Part of the outstanding borrows will be repaid in order to increase the collateral ratio back to a healthy percentage.

Liquidation bots

Currently, only whitelisted actors can run liquidation bots. In the future, everyone can run these bots on DeltaPrime. If a Prime Account's health ratio hits or drops below 0%, all liquidation bots are incentivized to perform a liquidation on that account. Instead of liquidating the account fully, liquidation bots can only perform partial liquidations, up to a health of 10%. This way borrowers don't lose everything due to a price spike, while depositors stay protected. Whenever a liquidation bot successfully liquidates a position, it will get a liquidation bonus as an incentive, paid by the Prime Account.

In the extreme case that the loan is so small that the liquidation bots don't have enough incentive to liquidate, protocol-owned liquidation bots will liquidate the position (for Prime Accounts over $50). This might mean the liquidation happens at a small loss for the protocol, which will be covered by our insurance pool ($2.3mm TVL at time of writing). This pool has been created, and is built up with protocol revenue. This method secures the funds of depositors to prevent them from losing their capital due to a large amount of illiquid ghost contracts or black swan events. Eventually, stability pools will be set up, in which users can participate to cover potential bad debt. Information on the specifics of these pools and their rewards will be shared in the fuutre.

Liquidation order

Borrowed funds must be repaid in the same currency they were issued with. When liquidation occurs the bot will pay back the loan in following steps:

1. Calculate how much should be repaid to bring the loan back to a safe level.

2. Repay part of the loan from tokens supplied by liquidation bot.

3. Transfer part of account positions + liquidation bonus to the liquidator (of the same USD value as supplied in pt. 2).

This is a highly summarised version. For the full liquidation process, including a liquidation example, see this document:

Protects

Oracle price data

DeltaPrime uses price feeds from an oracle, RedStone, enabling us to calculate the price from multiple independent price sources. Liquidity protocols are often the target of price manipulation through affecting liquidity on AMMs. In DeltaPrime, every evaluation of assets is based on data from this RedStone. This ensures that solvency checks of accounts are based on real-world data and protects depositors from losing funds due to price manipulation. To guarantee that price feeds are always up-to-date, DeltaPrime uses the RedStone oracle that offers a 10-second update interval. Numerous times faster than the current industry standard.

Whenever a transaction is performed, there is additionally a DEX-Oracle check. If the DEX price differs significantly from the oracle price (which calculates the fair price based on its multiple price sources), the transaction reverts. This protects users from losing funds due to price manipulation.

Protects

Stability Pool

The Stability pool is used as reimbursement in case of an exploit / bug of an integrated protocol or DeltaPrime, leading to a loss of funds despite the user's best efforts to protect his capital. If an underlying protocol is exploited to the point where the protocol accrues bad debt, and the underlying protocol has indicated there will be no reimbursements, DeltaPrime will cover lender's capital first. Borrowers, who allocate borrowed funds to chosen protocols, bear more responsibility for the loss of capital and are therefore not automatically reimbursed in the case of an underlying protocol's exploit. By the team's (and later the DAO's) discretion however, borrowers can be (partially) made whole as well in the case of an exploit, depending on that exploit's specifics.

Borrowers can appeal for stability pool reimbursements if the loss of funds is a direct result of a mistake made by DeltaPrime's development team. In that case, the user has to exhaust all other reasonable options to prevent loss of funds, and has the burden of proof to show the loss of funds is a result of faulty code. Provided a substantiated claim, DeltaPrime's team will assist in finding the source of the loss of funds. Opportunity cost is never covered by the stability pool.

At the time of writing, DeltaPrime has two sources of its stability pool (together shown on the Savings page as Reserve fund). The Protocol Owned Liquidity (~$1.6mm) has been built up since February 2023 through redirecting a portion of protocol revenue to the stability pool. The Atomica insurance ($700k) is paid for from the POL stability pool.

As DeltaPrime scales, more additional sources for the stability pool will likely be introduced. The goal of these pools is to provide a liquidity layer in the case of an (underlying) exploit that isn't covered by any of the other security measures. As a user of DeltaPrime, you will be able to provide DeltaPrime's first line of defense in return for additional yield. Until then, DeltaPrime will only allow the integration of the strictest of protocols and tokens.

Protects

Asset whitelisting

To protect borrowed funds from default, DeltaPrime launches with a restricted number of assets with borrowing power. Before integration, we make sure that every token with borrowing power is:

1. Liquid

2. Stable

3. Protected from DEX price manipulation

Liquid

As exploits on liquidity protocols tend to happen through the manipulation of DEX prices, having enough liquidity in the integrated DEX is an important layer of defense. Inflating the price of a token with one million dollars is significantly harder, than inflating a token with one hundred dollars.

Additionally having a liquid token protects borrowers and liquidators from slippage. AMMs are based on supply and demand. Whenever you swap a token, you increase the supply of that token, while simultaneously decreasing the demand. Because this influences the price during your swap, you end up with fewer tokens than you might have expected: Slippage. The impact your trade has on the supply/demand ratio is based on how big of a swap you are making, compared to the liquidity in the pool. In doing so, swapping liquid tokens as opposed to illiquid tokens, leads to better capital efficiency for you as a borrower, and for liquidators redeeming their liquidation bonus.

Risks of low-liquidity tokens can be mitigated by customizing their borrowing power or global exposure cap.

Stable

Multiple liquidation bots, set up by DeltaPrime and active community members, protect borrowed value from being lost through liquidations. In order to timely liquidate these positions, it is important that the assets acting as collateral don't have a history of price spikes. For tokens with 5x borrowing power, liquidation is always profitable as long as prices change within a 16.66% margin within a 30-second interval. The 5% maximum historical price change is set to ensure enough price stability for liquidation bots to execute on time, even if a token becomes three times as volatile as during its worst moments. For sake of comparison: Would UST be integrated with 5x leverage during the 2022 depeg, liquidation bots would have successfully liquidated all positions.

If despite these strict measures a token's price spikes over 16.66%, DeltaPrime's liquidation bots will liquidate immediately, even if at a loss.

Protected from DEX price manipulation

While liquidity in the DEX is an important layer of defense against price manipulation, the introduction of flash loans (and whales existing) in web3 allows users to move large sums of money in and out of DEXs. Because of this, prices of tokens integrated into DeltaPrime are not solely dependent on their AMMs. Instead, for an asset to be integrated into DeltaPrime, it needs additional fair price-protection measures.

This means using multiple oracle price data sources from RedStone, or ensuring that at least one of the data sources for the price comes from a centralized exchange. Should the AMM price differ more than 3% (excluding slippage) from the oracle price, the action is reverted.

Protects

Protects

Hexagate

Hexagate is a service that monitors and alerts in real time on any on-chain threats or exploits. This allows us to stay on top of what's happening on-chain and react accordingly even before an exploit happens. Should DeltaPrime be targeted by an exploit that might result in financial loss for the protocol, we are well equipped to pause our contracts automatically and then triage the threat with the help of team of experts from Hexagate. Currently a function is being built out, which will automatically withdraw assets from any integrated protocol which has a crucial risk of being exploited in the near future. This means that in most instances, LPing through DeltaPrime will become even safer than LPing directly to the underlying protocol. Apart from the monitoring, alerting and automated responses to threats our cooperation with Hexagate means that our security processes and playbooks are carefully curated together with Hexagate team to ensure best protection of users' funds possible.

Atomica

Many insurance protocols are not yet able to cover complex protocols like DeltaPrime. Because of this, Atomica has built a customized and permissionless system of insurance pools to insure DeltaPrime users. It will automatically cover a significant share of any deposit. A part of the DeltaPrime revenue will be used to incentivize providing liquidity to insurance pools. In the future, insurance providers can choose to provide either to a Stability Pool (high risk/reward), or a set of risk-specific pools (low risk/reward).

These Pools will protect the protocol and depositors specifically from: *Collateral caused insolvencies- quick price drops that lead to unprofitable liquidations *External integration insolvencies- loss of funds caused by malfunctions of integrated protocols (due to exploits, extreme arbitrages etc.)

FCShield

FCShield built an independent control system for DeltaPrime. This is a system that operates autonomously or separately from other systems or entities, with the purpose of e.g. monitoring risks associated with different financial activities. In traditional finance the usage of control systems is often required and regulated by law. On DeltaPrime this system monitors and evaluates economic activity happening on the platform, informing about any anomalies and ensuring proper functioning of the protocol, even in extreme market conditions.

Ledger Works 🛠

Ledger Works (lWorks) has built a monitoring system that keeps track of important on-chain activity and identifies any market irregularities. DeltaPrime uses this system to keep track of, and get alerts on DeltaPrime contract interactions, as well as external market interactions.

These interactions can vary from the number of users that deposited USDC into a DeltaPrime liquidity pool on any given day, to the total value of LINK that has been transacted on the chain as a whole.

Protects

In web3, an audit is an extensive code analysis by (usually) third party companies and individuals. The aim of audits is to find potential risks to user or protocol funds. Any risks that these parties find, whether from external or internal sources, is highlighted and reported back to the team. It is up to the team to either resolve, mitigate or acknowledge the reported risk, but whichever choice they make, it is recorded in the official audit report.

Audits are made to be readable for the general public, so if you can't read code, don't worry. At the start of every audit there is a small overview, showing the amount of informational / low / medium / high vulnerabilities found, as well as the team's response to the found vulnerability. If you have never seen an audit before, give a couple of them a look. Always good to understand the risks associated with getting into a protocol. If you need any help on reading an audit report, feel free to jump in our Discord. We are happy to help.

One of DeltaPrime's doxxed advisors: Jakub Wojciechowski has been an independent auditor for one of the leading auditing companies OpenZeppelin. Together with the rest of the development team, he goes through all of the updated code before it is put up for audit by an external auditor. When we talk about the number of audits that DeltaPrime has had performed, we do not take any internal audits into account.

Good external audits are expensive, generally ranging anywhere from 20-150K. For this reason there are many protocols that have a hard time on deciding whether or not to get an audit for their code. With DeltaPrime we believe that proper security is not something that should be compromised on. For this reason DeltaPrime has one of the, if not the, most heavily audited codebases in DeFi for its age.

Audits

To date, ten audits have been finalized: four by PeckShield; one by independent auditor Piotr Szlachcia, another one by Chainsulting, one by ABKD, one by BlockSec and two by AstraSec. As DeltaPrime develops, additional audits will be performed to provide maximum security.

You can find all audits on our GitHub below.

Protects:

Hi, I'm Gavin, one of DeltaPrime's founders. Nice to meet you! I know the rest of my team by heart, and fully trust them. That being said, we don't want you to have to trust us as well. After all, DeltaPrime is fully trustless. This is why we design our internal security measures with the same vigor as we design our external security measures. The security measures below are put in place to protect you from a hypothetical internal bad actor or compromised wallet.

Timelock

A timelock is an enforced period of time that code submissions have to pass before they are updated in the code itself. Timelocks protect users from unexpected changes in code, yet they also restrict developers in potential crucial code updates should the need arise. Because of this, DeltaPrime has a progressive timelock period.

During the alpha version, which ran from March 2022 until January 2023, there was no timelock, allowing developers to immediately push necessary updates.

Now, DeltaPrime has a 24-hour timelock. This allows users to adapt their Prime Account or deposited funds to the submitted changes in a 24-hour period prior to any code update.

In the future, the 24-hour timelock will be upgraded to a 72-hour timelock.

Multisig

Additionally to the timelock, every code upgrade and treasury transaction must be approved by 2/3 of DeltaPrime's founding team. This is enforced through a multisignature contract which only allows code upgrades when 2 out of 3 core team members have signed the upgrade with their cold storage wallet. This protects you from a rogue dev / teammember pushing malicious code.

Hardware wallets

The team uses hardware wallets for any protocol update. This means that if someone was to hack our computers, they would not be able to push any code changes, as the hardware wallets are physical.

Doxxed team

Audits

Good to know: auditors also check for centralization risks. This means that potential backdoors, deliberate exploit opportunities and other risks are reported by the auditor with or without the team's approval.

For more information on audits and to find the full list of audits performed on the DeltaPrime codebase see the next page.

For the longest time, DeltaPrime had been built with external capital by a small team, together with the support of our community. In order to further scale DeltaPrime, while getting the community in on the action, we now created two tokens: $PRIME and $sPRIME. These tokens, with $sPRIME being the star player, will allow DeltaPrime to retain its sustainable business model while simultaneously rewarding DeltaPrime’s biggest supporters.

True to our cause, DeltaPrime’s tokenomics adheres to three major values we hold dear:

• Efficient (unlocking idle liquidity within $sPRIME is rewarded)

• Sustainable (token value stems from protocol value + holder activity, not the other way around)

• Useful (Prime Features, liquidation bot staking, governance)

In this docs you will read how every element is integrated into the tokenomics. As minor values, we attempt to make the tokenomics as understandable and accessible as possible. $PRIME and $sPRIME should align its owners further than just “price go up”. Instead, they should be a binding factor and work towards the common goal of unlocking the trapped liquidity from overcollateralized platforms. This is how we move DeFi capital efficiency into a new era.

DeltaPrime aims to be completely transparent in her business model. Currently, DeltaPrime charges solely liquidation fees (up to 16.67% on liquidated amount) through its liquidation bots. As DeltaPrime functions on grant and investment money, we can focus on developing the best possible product, without charging every users for use of the protocol.

In the future, DeltaPrime will generate profit through the fees listed below. All our users will be notified through our socials at least 7 days before implementation of a sustainable fee model.

Future cashflows:

• Transaction fee: fee on transactions (~0.015%)

• Interest fee: Spread on the borrowing/depositing rate (~15% on paid interest)

• Success fee: Spread on profits withdrawn from DeltaPrime (TBD)

• PRIME Features: profits generated through $PRIME services

While the numbers for an individual user might seem small, with volume this model allows DeltaPrime to be completely self-sustainable while generating profits for $PRIME holders. As an indication, in February 2023 one month after launch, DeltaPrime put a 10% spread on the USDC pool for 5 days (to kickoff the stability pool). This spread accumulated ~$1000 in revenue every 24h.

PRIME Features

Additional brime brokerage services (PRIME Features) can be bought with sPRIME. Some of these features simply require holding a specific amount of sPRIME, others will be charged in sPRIME over time while in use.

Prime Features can be:

• Fee reductions

• Higher leverage

• More tokens

• Unique statistics

• Important personal notifications

• and more...

PRIME Features can be recognized with a little yellow star. Hovering over the star shows that you have access to a Prime Feature.

PRIME Features 1) contribute to sustainability in PRIME tokenomics, 2) remove PRIME from circulation 3) allow you to design your personal DeltaPrime experience, and 4) reward loyal users.

At DeltaPrime’s roots, we find $PRIME. In many ways $PRIME is like any other ERC20: It can be traded on the open market, sent to a fren, LPd on a DEX. Unique to $PRIME is that it is necessary to create and manage $sPRIME. $PRIME, in its pure form, will be mostly used for speculative purposes. However, due to $PRIME being a necessary element for $sPRIME, with its price therefore correlated to $sPRIME demand, we need a solid emission schedule for $PRIME to create stability and sustainability. “Emission” of $PRIME specifically pertains to bringing the token into public hands.

Many tokenomics aim to have their emissions correlated to demand. Generally 3 types of token emission schedules exist:

• Fixed (based on time, eg: $UNI)

• Flexible (based on event, eg: $DAI)

• Dynamic (based on formula, eg: $CVX)

While a fixed schedule is the easiest to implement, it also requires accurate predictions of how demand grows over time. Dynamic schedules need to incorporate a wide variety of variables and often need multiple iterations in order to keep the formulas accurate, which reduces predictability of token emissions. Additionally both types suffer one major challenge: emitting during periods of high demand is easy; retrieving those tokens during periods of low demand not so much.

While $PRIME is not a stablecoin, a level of stability and predictability is preferred to support sustainability. For this reason, $PRIME emissions will be flexible and based on its current price. To achieve this, we use Trader Joe and Uniswap v3 to provide $PRIME to these markets single-sided. This will be Community Owned Liquidity.

Community Owned Liquidity

Community Owned Liquidity (COL) comes from our Community allocation (see the token distribution below). At TGE, 10% of the total supply is provided on the DEXs to reduce slippage on larger sized $PRIME purchases. This liquidity will remain in the liquidity pools, until a properly decentralized DeltaPrime decides otherwise, or a portion gets airdropped toprevent idle liquidity (more on this in the $sPRIME section). To ensure this, COL will be provided by a public contract of which the owner is a 2/3 multisig (controlled by the DeltaPrime founding team) with a 30-day timelock. The 30-day timelock allows liquidity to be moved if the pools they reside in get deprecated by the DEX, while simultaneously giving the community ample time to respond to triggered functions of the contract.

As $PRIME increases in demand (and thus in price), this liquidity automatically brings more $PRIME in public hands. Conversely, if $PRIME decreases in demand, the countertoken collected will automatically be used to buy back the $PRIME, in turn reducing the supply and providing price stability in a downturn. The 10% COL at day one allows for a max slippage of 1.95% for $100.000 $PRIME, which linearly reduces to 0.97% slippage, as $PRIME reaches 5x listing price ($6.56).

This has a couple of benefits:

• Whales can take part in $PRIME trading / accumulating, straight from day 1

• $sPRIME holders generate more fees with reduced impermanent loss

• Emissions and buybacks happen organically, based on supply and demand

• Locked sPRIME airdrops can be given away, rooted in COL

2021

Avalabs Grant ✔

Acquiring a $300.000 Grant from AvaLabs set DeltaPrime up for a solid foundation. These funds make sure that at time of the TGE, every investor sees, knows and understands the full value of DeltaPrime.

Leveraged Trading ✔

The first feature of DeltaPrime is Leveraged Trading. To provide this, DeltaPrime needs:

• A functioning liquidity pool;

• An integrated Decentralised Exchange;

• An efficient way of creating Dedicated Smart Contracts.

Having Pangolin integrated, and with the borrowing and trading functionality in place, DeltaPrime is officially a functioning dApp.

2022

Q1

First Audits ✔

The first audits are performed in order to ensure protocol safety. The code has been determined as safe, preparing DeltaPrime for retail use. During her lifetime, DeltaPrime will be regularly audited to keep the platform safe to use.

Testnet Deployment ✔

DeltaPrime has been deployed on the Avalanche FUJI C-Chain. During this period every functionality within the platform has been tested extensively to remove any bugs and glitches as well as optimise UI/UX.

Mainnet Deployment ✔

Deployment to the Avalanche Mainnet meant the alpha launch of DeltaPrime. During this period the Development team made sure the application works like it should work, in a real environment.

Trading Competition ✔

Q1 was celebratory concluded with a trading competition on the platform. With over $1000 in prizes and a multitude of prize NFTs, the trading competition gave valuable feedback to the team and introduced the community to DeltaPrime's trading functionality.

Q2

Leveraged Farming ✔

The integration of YieldYak means the integration of DeltaPrime's first staking protocol. With this in place, a lot of new investment strategies are unlocked on DeltaPrime. Additionally, this feature sets up the foundation for other staking protocols to come.

Partner Expansion ✔

In preparation of the community expansion in Q3, DeltaPrime set up a network of partners within and outside of the Avalanche ecosystem. These partners consist of other protocols as well as different chains and will contribute to the core features and marketing efforts of DeltaPrime. Partnership announcements will commence shortly before the launch.

Q3

Leveraged LP ✔

The foundation of leveraged Liquidity Provision (LP) will be set during Q3. This allows DeltaPrime to offer the same service that protocols like Alpha Homora offer, yet within the cross-margin Prime Account. In integrating the first LP option, DeltaPrime has finished her trading/staking/LP foundation and is ready to expand the protocol with more integrations.

Community Expansion ✔

The community is the backbone of every successful web3 protocol. Soon DeltaPrime will open up its protocol to all Prime users. As a preparation, DeltaPrime will reach out to potential investors: Borrowers, as well as depositors.

This community expansion will happen through means of protocol partnerships as well as Ambassador Games. In Q3 we start with the Ambassador Games in DeltaPrime's Discord, during which community members can share educational content, the best of which will win prizes. In Q4, a month before the launch, partnerships and collaborations will be announced through which the main part of the community will be reached.

Integration Expansion ✔

DeltaPrime is ready for her protocol expansion. The Diamond Pattern in the code enables us to bypass the maximum smart contract limit. The Beacon Proxy Pattern, enables us to upgrade the protocol to allow Prime Accounts to interact with newly integrated protocols. With this combination we can upgrade the protocol to integrate as many DeFi protocols as desired.

During this period new protocols and functionalities will be integrated on a bi-weekly basis to create a lot of value for DeltaPrime in a short amount of time. Leveraged LPs will be first, followed by extra DEXs and staking opportunities.

Q4

Third Audit ✔

In preparation for the launch, with the integrations in place, DeltaPrime will once again audit her code to ensure a safe launch. This audit is performed by Chainsulting, and covers the improved foundation, as well as the new integrations in the platform.

Fourth Audit ✔

For good measure, we had an additional audit performed by Peckshield. This audit covers the same codebase as the Chainsulting audit.

January 10, 2023

DeltaPrime Launch ✔

DeltaPrime launches! All prepared UI/UX, integrations as well as depositing and the borrowing of USDC will be available at launch. Although at this point DeltaPrime will be able to offer a unique amount of value, this is just the start. More integrations, partnerships and features will unlock as we progress out of 2022 and into 2023.

2023

Q1

Integration Expansion ✔

With DeltaPrime being live, integrations can be based on community feedback. Based on this feedback, new integrations have been integrated into the DeltaPrime ecosystem:

• Yak Swap (DEX aggregator)

• GLP

• Vector autocompounding pools

Pool Expansion ✔

We had AVAX and USDC. In Q1 three new pools have been added to lend out and borrow. These assets, just like the first two, now boast some of the highest yields for single-sided staking on the chain, while enjoying the protection of your usual liquidation bot.

• BTC.b

• WETH.e

• USDt

Debt Swap ✔

The Debt Swap allows Prime Account holders to trade their exposure. Borrowed $1000 AVAX for a delta-neutral sAVAX strat, and want to go long on AVAX instead? With one tx, you can now change your AVAX debt for USDC debt, turning your dn into a long. This is how we trade.

Team expansion ✔

Next to protocol upgrades, we upgraded the team as well in this period. This means that from Q2 onwards, upgrades and integrations will come even better prepared and faster at the same time. Current DeltaPrime team size: 10

Q2

Integration expansion

This quarter the following protocols and assets were integrated in the Prime Account:

• SteakHut (Concentrated liquidity)✔

• ParaSwap (DEX aggregator)✔

• JOE✔

• GMX✔

Loading optimizations ✔

Data. Loads. Slowly...

But not after this upgrade! For those who remember the "transaction pending" days of DeltaPrime (~3 weeks after launch), this optimization had a similar effect: from snail to rocket.

Night mode ✔

This one is for all degens who haven't seen sunlight in the past years, and would like to keep it that way. With this design overhaul, you can choose to have your Prime Account bright and playful, or dark and neon.

You decide.

Prime Account Statistics ✔

Managing your liquidity through a Prime Brokerage account, like the Prime Account, enables a wide range of cross-protocol statistics to become available. In this first iteration of DeltaPrime's statistics page, users are able to find and track the first statistics of their Prime Account.

With these statistics you can make better informed decisions on how to best manage your capital.

Deposit Swap ✔

You want to change your exposure from bearish to bullish, but you don't want to unstake your working capital? Fret no more! With the deposit swap you can now swap your "borrowed" value with the click of a button, without touching what is already there.

The deposit swap enables users to change exposure between assets, without having to trade the assets themselves.

Q3

Integration expansion

This quarter the following protocols and assets were integrated in the Prime Account:

• EUROC✔

• Yield Yak (Arb)✔

• Trader Joe (Arb)✔

• Beefy (Arb)✔

• All Arbitrum tokens✔

Additional DEX aggregator

We love Yak Swap as much as the next guy. A lot more than the next guy probably. But sometimes, you just want choice. For some routes, aggregators like Paraswap works better. Which is why we integrated, you guessed it, Paraswap. This will not replace Yak Swap, but rather, it supplements it. Users can now choose through which aggregator they want to route their swaps.

LIFI + Notifi

Deposit bridge + notifications. Great stuff, but got buggy, pls come back in Q3 2024.

September 4th, 2023

Arbitrum Launch🛠

DeltaPrime upgrades the lending system by combining the best of both worlds: The efficiency of undercollateralization + the safety of overcollateralization. This unlocks millions, potentially billions of dollars from inefficient lending protocols. Instead, through DeltaPrime, it deepens pool liquidity, and lowers slippage on its host chain.

Keeping that value constrained to any single chain, would be a waste of opportunity.

On the 4th of September, DeltaPrime will expand to the Arbitrum ecosystem. This chain, known for its innovation on DeFi, allows DeltaPrime's users to benefit from a completely new range of strategies, which couldn't be created before. On DeltaPrime, or anywhere else.

Let's unlock the Blockchain.

Q4

Integration expansion

This quarter the following protocols and assets were integrated in the Prime Account:

• Liquidity Book (Concentrated liquidity)✔

• Level Finance (Perp DEX)✔

• GMX v2 (synthetics)✔

• yyAVAX + ggAVAX (LST)✔

• Balancer (DEX)✔

2024

Q1

DeltaPrime incentive programs ✔

In this quarter we created DeltaPrime specific incentive programs. From here on out partnerprotocols and chains can incentivize the value-add of DeltaPrime. Instead of giving rewards based on TVL or borrowed pools, rewards on DeltaPrime are given based on how much of the borrowed value has been LPd to (a) specific partner(s). In doing so, DeltaPrime incentive programs are mercenary, leaving more rewards for those who unlock trapped liquidity.

Gas optimizations ✔

DeltaPrime gives you extra capital to power up your stragies. This comes with a smol increase in gas as well. In this period, we optimized our codebase to significantly reduce the amount of gas used for Prime Account transactions.

While we have one major gas optimization on the horizon, this is a great step in making the Prime Account accessible to the smaller wallets.

Debt swap upgrade ✔

The Debt swap previously forced trades through Yak Swap. With this upgrade you can choose whether to route your debt swap through either Yak Swap or Paraswap. More choice, less slippage!

ZAP expansions ✔

Two new ZAPS have been added to the Prime Account:

• Prime Account creation

• GLP to GM

As the names suggest, these zaps allow for easier onboarding, as well as for easy migration from GMX v1 to GMX v2 pools.

Q2

Integration expansion ✔

This quarter the following protocols and assets were integrated in the Prime Account:

• CAI (Colony) (Avalanche) ✔

• [Redacted] (Avalanche)🛠

• Penpie / Pendle (Arbitrum) ✔

• [Redacted] (Arbitrum)🛠

App cleanup ✔

Outdated and long time low TVL (sub 50k) pools have been removed from the Prime Account on Avalanche. This leads to a cleaner UI, lower gas fees and easier onboarding.

LIFI ✔

Outdated and long time low TVL (sub 50k) pools have been removed from the Prime Account on Avalanche. This leads to a cleaner UI, lower gas fees and easier onboarding.

Q3

Token Generation Event (July 1st)🛠

TGE incoming!

$PRIME tokenomics centre around three core values of DeltaPrime:

• Efficient

• Sustainable

• Useful

Soon we will release more information on $PRIME's tokenomics. This will explain exactly how these three core values are ingrained in the tokenomics, and DeltaPrime's three main tokens.

Join us in our continued path here: socials.

Protects

Introduction

As part of our commitment to ensuring a safe environment for our users, we have established a comprehensive Bug Bounty Program. This program aims to proactively identify and address potential vulnerabilities within our smart contracts and protocol infrastructure.

Why Bug Bounties Matter

Bug bounties serve as a crucial line of defense against security vulnerabilities. They enable security experts, ethical hackers, and developers worldwide to contribute their expertise in identifying and reporting vulnerabilities, which helps us maintain the highest standards of security for our platform.

User Benefits

The Bug Bounty Program offers several benefits:

• Enhanced Security: By actively involving the community in identifying vulnerabilities, we strengthen the overall security of our platform, reducing the risk of potential exploits.

• Engaged Community: Encouraging community members to participate fosters a sense of shared responsibility and collaboration in maintaining the integrity of our protocol.

• Generous Rewards: Ethical hackers and security researchers who discover and responsibly disclose vulnerabilities have the opportunity to earn substantial rewards.

Participate and Contribute

We invite security enthusiasts, developers, and experts to join our Bug Bounty Program and contribute to the safety of DeltaPrime.

For streamlined vulnerability submission and efficient review processes, we have partnered with HackenProof, a reputable bug bounty platform. HackenProof offers a secure and organized channel for researchers to report vulnerabilities and for our team to address them promptly.

To participate, please visit our Bug Bounty Program on HackenProof: Bug Bounty Program. This page provides comprehensive information about the program's scope, rewards structure, and guidelines for participation.

Generous Rewards

In recognition of your contributions, we offer rewards based on the severity and impact of the reported vulnerabilities. The Bug Bounty Program documentation on the HackenProof platform outlines the details of our rewards structure. Notably, rewards for eligible vulnerabilities can be as high as $100,000.

Conclusion

Security is a collective responsibility, and your involvement can make a significant difference in the safety of our protocols. By participating in our Bug Bounty Program, you contribute to the ongoing enhancement of our security measures and help build a safer DeFi environment for everyone.

To learn more and get started, visit our Bug Bounty Program: Bug Bounty Program.

$sPRIME is the main currency within the DeltaPrime ecosystem. It is primarily used in three ways:

• Pay for Prime Features

• Claim 33% of protocol revenue

• Mint Governance Power

In traditional tokenomic models, sTOKEN is the staked version of the native token. The goal is to take the token out of circulation to artificially increase perceived value. In return for staking the token, the person who stakes gets rewarded through token emissions. Variations on this model experiment with the lockup time, withdrawal penalties, and additional lockup benefits after certain lockup milestones have been reached. Many of these models temporarily succeed in creating price-growth. That is, until the token crashes, the market crashes, or another event occurs which makes people lose trust in the future value of the token. When that inevitably happens, stakers are presented with a choice: 1) keep their stake, accumulating yield that, together with their principal, rapidly loses value or 2) sell their stake, potentially buying the asset back at a lower price. Whenever the perceived value of staking drops below the perceived loss of unstaking, holders will sell their token, further crashing the price. While lockup periods do decrease the intensity of the token crash, they also tend to extend the crash as people who have made up their minds about exiting, simply wait out their lockup to eventually sell. It mitigates negative effects, but does not solve them.

(3,3) becomes (0,3) becomes (0,0) becomes (-3,-3).

The $PRIME assets should support the ecosystem. Having sustainable price growth is a means to that end, it is not an end goal in and of itself. While locking $PRIME would temporarily help stabilize price growth, it would simultaneously result in trapped liquidity within the DeltaPrime platform. Liquidity that would do nothing, but exist in a vault. The very thing that crushes capital efficiency across chains, and the very thing that DeltaPrime is fighting to solve.

Efficient staking

Since locking $PRIME would lead to less capital efficiency than locking an LP token, $sPRIME cannot be created by just staking $PRIME. Instead, it is a receipt token that represents a $PRIME LP position in either Trader Joe (AVAX-PRIME on Avalanche) or Uniswap (ETH-PRIME on Arbitrum). From a user-perspective, the process of creating $sPRIME is very straightforward. To create Avalanche’s $sPRIME for example, you bring either $AVAX, $PRIME or TJ AVAX-PRIME to the DeltaPrime app. Here you click on “mint $sPRIME”, and select the asset and the quantity you wish to convert into $sPRIME. The range is automatically set to be equal for all DeltaPrime participants.

As long as the current price is within the price range of your $sPRIME, your $sPRIME is considered “active”. Your liquidity actively deepens the pool, supporting DeltaPrime’s growth. Active $sPRIME is eligible for 33% of all of the protocol’s revenue.

The benefits of $sPRIME

In holding active $sPRIME, users are actively contributing to the DeltaPrime ecosystem in three major ways:

Efficient swaps

In order to mint and hold $sPRIME, one has to provide an LP token. It is this liquidity that allows other users to swap $PRIME for other assets with minimal slippage. As regular $PRIME trading is necessary to use any of the Prime features, low slippage benefits everyone within the DeltaPrime ecosystem.

Increased stability

The volatile nature of crypto assets is a major deterrence for many potential crypto-users. Through enforcing deep pool liquidity, high volume trades can be absorbed by the liquidity without affecting the price too much. This stability empowers users with the ability to predict what $PRIME will do in the future, allowing them to adjust their buying behavior without having to take into account the effects of smaller whales entering or exiting the ecosystem.

Buffer for unlocks

Like the vast majority of projects, DeltaPrime has raised funds for development. While short cliff- and vesting periods have been the bane of many projects, so too has been shallow pool liquidity. The expectation of the price crashing, due to shallow pools and large unlocks, has had many self-fulfilled prophecies as a result. The way to prevent this is not by preventing users from selling their tokens, but instead, by creating a liquidity buffer large enough that any selling pressure can seamlessly be absorbed without significantly affecting the price.

Depositing in DeltaPrime's Savings section means depositing in a capital-efficient pool while staying protected by liquidation bots. In contrast to other liquidity protocols, deposits in DeltaPrime's liquidity pools get lent out to other users, without the need for them to put extra value in. In doing so, you know that your liquidity is being put to good use.

This also means that deposited funds do not automatically get counted as collateral to borrow against. In order to put down collateral on DeltaPrime, read the Adding Collateral section.

DeltaPrime's liquidity pools are fully decentralized. Depositors and borrowers use token-specific liquidity pools to deposit and borrow funds. As a depositor you lend out AVAX or USDC to make reliable returns in the form of APY. Contrary to overcollateralized protocols, you cannot borrow against these assets. Borrowing is only possible within the Prime Account. On the upside, generally generates high yields liquidation-protected protocols.

While the protocol protects your funds, borrowers will put your capital to work, in order to generate profits. They will pay you a relatively stable return in exchange for lending out your funds. If a borrower's investments make a change for the worse, they will be liquidated to ensure your funds stay safe.

Locked $sPRIME

“Once tokens are emitted, they can’t be returned”. Fixed emissions run the risk of external event impacts, which is the reason our main emission schedule is event based. The same goes for our incentives. The vast majority of incentives not provided by our partners will be given out in locked $sPRIME. While locked $sPRIME can’t be redeemed for underlying assets, it can be used for their other use cases:

• Locked $sPRIME can be used to pay for $PRIME features. This benefits the user without inflating the token

• Locked $sPRIME can be used to support DeltaPrime by keeping the LP active. This rewards the user with 33% of protocol revenue

• Locked $sPRIME can be used to generate governance power

Locked $sPRIME is created from the community allocation. Because the Community Owned Liquidity (COL) is provided over a very wide range, without rebalancing, the percentage of idle COL increases if $PRIME appreciates in price. This reduces its capital efficiency as opposed to turning it into $sPRIME (concentrating it around the current price). For this reason, idle COL will be matched with $PRIME from the community allocation to create $sPRIME. This $sPRIME will be locked to prevent token inflation, while providing recipients with the $sPRIME benefits stated above. Locked $sPRIME is airdropped based on achievements reached by individual DeltaPrime users (think: over x$ USDC provided over three months, or total borrowed value over one month, etc.). These achievements will be determined and adapted over time. Most of the achievements will also be connected to certain prerequisites for keeping the locked sPRIME. For example: The $sPRIME might be required to stay active for at least 21 days per month; or the realized IL might need to stay under 10% of the airdropped $sPRIME value. If the requirements are not fulfilled, the locked $sPRIME can be retrieved and redistributed to other DeltaPrime users. All benefits received within this period however, remain with the person who received them. Note: this potentially excludes generated governance power, based on the $sPRIME / usage ratio. More on this in the Governance power section.

Due to its inflation-resilient design, as well as the possibility to retrieve and reallocate airdrops, DeltaPrime is able to allow for significantly larger incentives than many other projects. This allows the project to adapt its incentive strategies over the long term without having to hold back in incentive allocation size.

Note that turning COL into locked sPRIME does not involve the buying or selling of $PRIME, nor does it involve the removal of any AVAX / ETH from the underlying liquidity pool. AVAX / ETH is reallocated to concentrate around the current price, while community allocation is used to equalize price stability to the buy-side. The users receiving this as locked $sPRIME are tasked with keeping this capital as efficient as possible, and are rewarded for this in the process.

Governance power

As DeltaPrime moves into decentralized governance, your voting power will depend on the governance points you accrue. Your currently accrued governance points will be visible from the DeltaPrime UI. Since these points are all on-chain, you will also be able to find them in any explorer with your wallet or PA address. Governance points can be used to decide on what protocols to integrate, what chains to expand to, where to allocate any collected fees, etc.

How to earn governance power

Governance power is earned within the DeltaPrime protocol. By holding $sPRIME and using the platform, you can earn these points. The amount that you earn depends on your actions on DeltaPrime: For every $10 borrowed and $1 $sPRIME owned, your balance increases linearly with 1 point per year. For every $10 deposited and $1 $sPRIME owned, your balance increases linearly with 5 points per year. Only full 10-1 pairs can produce governance points. That means that if you have $200 USDC deposited, and $100 $sPRIME, your account will create points as if you have $200 deposited and hold $20 $sPRIME (leading to 100 points per year).

Governance power cap

Governance points are capped at 3 years. With $100 borrowed and $10 sPRIME owned, your governance power can grow up to 30 points. With $100 deposited in a savings pool and $10 sPRIME owned, your governance power can grow up to 150 points.

How to lose governance power

You can lose governance power by withdrawing deposits, repaying borrowed value or redeeming $sPRIME. Your governance power only reduces if your current governance power exceeds the governance power cap. If this happens, your points that surpass the cap will deteriorate over a period of 14 days. This means that if a user after two years has accumulated 10.000 points with $10.000 in deposits and he withdraws 50% of this, his new governance cap is reduced from 15.000 to 7.500 points. This means his balance will decrease by 178.5 (=(10.000 - 7.500) / 14) points per day, over the course of 14 days. In this example, after 14 days his total points will amount to 7.500, meaning he will not accumulate any more points until the amount deposited is increased.

Total Supply

40mm $PRIME (Cliff / Vesting in months starting at TGE)

Community

12.597.778 $PRIME (0/0)

Community Owned Liquidity (COL) + locked sPRIME Airdrops. Locked sPRIME airdrops are designed to increase adoption, without increasing inflation. More on how this works can be found in $sPRIME. At TGE, 10% of total supply (31.8% of community allocation) will be used for COL. Initial $sPRIME airdrops will come from the launchpads / IEO allocation.

DAO Treasury

8.000.000 $PRIME (12/12)

In order to provide the DAO with the freedom to develop DeltaPrime in their preferred direction, a part of the tokens will be reserved for the DAO to decide on. To prevent tyranny, this treasury will only become available to the DAO once 40% of all $PRIME tokens are in circulation and DeltaPrime has fully decentralized governance. Until then, the DAO treasury will not be used.

Team

6.400.000 $PRIME (12/24)

Core team allocation for 3+ years of development without guarantee of success.

Advisors

2.000.000 $PRIME (12/12)

Allocation for DeltaPrime advisors, which had and have a significant impact on DeltaPrime’s successful development. The cliff and vesting here are minimum. The vesting can be larger for advisors with a larger share.

Private seed

700.000 $PRIME (8/8)

pre-TGE Contributors who receive a discount for locking and vesting their $PRIME over 16 months.

Bridge

924.444 $PRIME (8/8)

Both private and community contributors, contributing to DeltaPrime in late 2023.

Pre-seed

1.866.667 $PRIME (8/8)

Earliest (pre-launch) contributors, took extreme risk to support DeltaPrime in development and team expansions.

Grant

228.571 $PRIME (12/12)

A 300k grant has been provided by the Avalanche foundation in our early days (2022). This came with an option to buy the token back at a discounted price up to the grant amount in the future. While there is no set date for this, we do reserve a part of the allocation for this grant.

IEO

571.429 $PRIME (0/0)

$PRIME used to bootstrap DEX liquidity at launch. This is matched with 100% of the launchpad proceeds and 50% of the Community Seed proceeds.

Launchpads

444.444 $PRIME (0/6)

Allows early community members to contribute to DeltaPrime liquidity pools, and get in early at the best no-cliff $PRIME rate. 100% of liquidity raised from launchpads will be matched with IEO to deepen liquidity pools at TGE.

Community Seed

666.667 $PRIME (6/6)

The first raise open to all community members. They receive a discount based on 1) cliff, 2) vesting, 3) decentralized party. 50% of these funds ($250k) will be matched with IEO to deepen liquidity pools at TGE.

Bounties

800.000 $PRIME (0/0)

$Prime allocated to individuals who find critical severity bugs in the code. Informational to high severity bugs will be covered in FIAT instead. This allocation has no cliff / vest, as, while none has been found so far, we should not assume the number of these bugs found upfront.

Ecosystem growth

4.800.000 $PRIME (0/0)

$PRIME allocated to the growth of the DeltaPrime ecosystem. This is a broad use-case with examples including Market Making (MM) on future CEXs for price stability, or providing grants to partnered protocols and contributing community members. The vast majority of this allocation is reserved for (future, potential) CEX market making requiring a large allocation at once, which is the primary reason for the lack of cliff / vest. Realistically speaking, the vast majority of this bucket will remain idle until a CEX has been chosen to list on.

Investment rounds & listing price

Additional vesting schedules

The interest rate tells you how much you pay / receive per year for borrowing / lending out an asset. Lenders benefit from high interest rates, and borrowers benefit from low rates. An efficient system, therefore, has an interest rate both parties accept and that has the lowest possible spread between both interest parties.

For a protocol like DeltaPrime, fitting interest rates is crucial. In the following pages, we explain how DeltaPrime decides on its interest model and how the interest is calculated.

Similar to other decentralized liquidity protocols, borrowers put down collateral, prior to borrowing funds. With DeltaPrime however, you can borrow up to 5 times the amount of your collateral. This is what makes DeltaPrime undercollateralized and in turn capital efficient. Although your deposited collateral will not earn APY on its own-DeltaPrime does not lend out your collateral-, you can use your collateral within your Prime Account in the same way as you use borrowed funds.

By investing your collateral and borrowed funds simultaneously, you unlock the full power of your capital and literally multiply your returns (note: your returns are multiplied, regardless of whether they are positive or negative).

How to add Collateral

In order to borrow, you first need to add collateral. Collateral can be added in every token that has a borrowing power of 1x or higher and does not necessarily have to be in the same token as you are borrowing. You can even add LP tokens as collateral for your Prime Account. To add collateral, press the + button in the row of the (LP)token you want to add to your Prime Account to deposit your collateral.

How to borrow

Press the ... button in the row of the token you want to borrow and press "Borrow". A screen pops up in which you can enter the desired borrowing amount. Before pressing borrow you can see the Health Ratio and Balance you will end up with.

Keep in mind that the amount that you can borrow is dependent on the Borrowing Power of all assets in your Prime Account combined.

Calculating borrowing interest

Utilisation Breakpoints

By having multiple utilisation breakpoints instead of just one, DeltaPrime creates an optimal utilisation range. Instead of suddenly increasing the slope, there are ranges, to stabilize the interest rate around the ideal pool utilisation.

Slope

The slope defines the steepness with which the interest rates rise. In the beginning, it equals 0 (a constant function) to ensure low borrowing APR and encourage borrowing. In the second range rates moderately rise.The ideal pool utilisation percentage is in this range. In the third part, rates grow rapidly to encourage deposits and repayments and keep liquidity available for withdrawals. In the final range, liquidity must be freed up to bring the utilization back to a healthy ratio. In this last part rates grow with exceptional speed.

Offset

Calculating deposit rate

Deposit rate is calculated based on current borrowing rate and pool utilisation and balances total interests of all borrowers and all depositors.

Graphs

Non-stables

Stables

Borrowed

This is the most straightforward value: It shows the total value of what you have borrowed. Of course, the nominal value of your borrowed funds don't change, except for interest: 1 AVAX borrowed means there will be 1 AVAX (+ interest) to pay back. The dollar value can differ, depending on what you have borrowed.

All Prime Accounts get their borrowed value incremented with their interest whenever someone interacts with one of the liquidity pools.

Health

Collateral

Your Prime Account is your main hub within the DeltaPrime Ecosystem. It consists of your account overview and your portfolio. It is the central place from where you manage your collateral and funds. Here you trade, provide liquidity, and farm. It is also the place where you can find and invest in your preferred combination of integrated protocols.

Dedicated Smart Contract

When you create your Prime Account, a new, dedicated smart contract is created on the blockchain with it. Any borrowed funds, as well as your own collateral, is sent to this smart contract. As the account holder, you are the sole owner of this smart contract. Through interacting with your Prime Account you decide what the contract does. Should it trade AVAX for ETH or the other way? Should it stake all your borrowed funds for multiplied returns, or keep a part in stables to DCA? You are the only one who decides what happens with the funds in your Prime Account.

Safety

At the same time, the smart contract of your Prime Account has safety features built in. It is, for example, not possible to send all borrowed funds to your own personal wallet. Neither can you create your own token and invest borrowed funds into that to rug pull yourself. The smart contract has safety measures in place like liquidation bots and whitelisted protocols to make sure that you can go as safe or as degen as your heart desires, but that you never risk more than your collateral.

Cross-margin

Prime Accounts work fully cross-margin: No matter the pools you borrow from or investments you make, your health factor is calculated over the full combination of your passive and active investments. By investing cross-margin, you soften potential effects of sudden price spikes in one specific asset, and can perform better risk management on your full portfolio.

Your portfolio is the place where all your tokens, borrowed as well as owned, are shown.

Assets in your portfolio can be invested across a selection of the best Avalanche protocols. This means you are free to trade, LP, or Farm to your heart's desires. DeltaPrime can safely lend out assets deposited into its pools, by integrating other protocols in the ecosystem. You as the investor decide which combination of integrated protocols to invest in.

All assets in your portfolio also share the same margin: The minimum collateral percentage is calculated over the total value of your assets, independent of the type or place of the assets.

Pool utilisation

DeltaPrime interest rate model is optimised to achieve high pool utilisation and simultaneously manage liquidity risk. High pool utilisation has several benefits. It leads to:

• More capital efficiency

• Lower spreads for borrowers/depositors

• Faster DeltaPrime TVL/TVU scaling

Yet a highly utilised pool also lowers the buffer until a liquidity crunch occurs. The lower the risk of a liquidity crunch, the higher the ideal pool utilisation ratio. To evaluate the ideal pool utilisation ratio, and the interest rate surrounding this utilisation ratio, two variables are taken into account:

• Opportunity cost

• Volatility of asset

Opportunity cost

Future borrowing rates can be anticipated depending on an asset's opportunities within DeltaPrime. Before the GLP integration, the best rates on USDC (without impermanent loss) rarely exceeded 4-5%. Because of this, the mean rate for USDC tended to be lower than the rate of AVAX. With the integration, new opportunities arose, shifting the demand for USDC, and demanding a different interest rate model.

Of course, opportunity cost can also come from missed capital gains. When there is bullish sentiment, the mean interest rate for USDC can be higher than for AVAX. With bearish sentiment, this reverses.

Asset volatility

The risk of a liquidity crunch on an asset is also dependent on the volatility of that asset. An asset that is in the middle of a crash tends to be in high demand (if only to sell). Borrowers will want to borrow and sell that asset, whereas depositors would want to retrieve and sell their assets to manage their risk. An asset with a higher chance of dropping significantly in value, should have this reflected in its interest rates. This is not only to incentivize repayments at a high utilization rate but also to pay a fair price to the depositors, willing to lend out their assets during volatile times. In DeltaPrime this means that USDC is allowed to have a lower final interest rate than AVAX.

⚡️ZAP⚡️

... and your position is there.

With Zaps, you can set up a new strategy. Quick and simple. Zaps simplify the Prime Account for beginning users. Today, Zaps are confined to leveraged trades, and the migration from GMX v1 to GMX v2 positions. In the future, Zaps will allow for isolated strategies. Isolated strategies can have (significantly) higher leverage for positions.

Currently, four zaps are available:

Leveraged Long & Leveraged Short

As the name implies, these zaps borrow and swap an asset for another in one click, resulting in a leveraged position. As the platform automatically puts the position in your cross-margin Prime Account, there is no need to specify the amount of leverage. You only have to determine what asset you want to borrow, what to swap it for, and how much of that asset you wish to use.

GLP -> GM conversion

When GMX transitioned from v1 to v2, many users had to readjust their positions from GLP (v1) to GM (v2). This Zap smoothens this readjustment process, allowing for easy migration.

Create a new Prime Account

Create a new Prime Account (PA) is only visible for those who, you guessed it, don't have a Prime Account. While the process of creating a PA isn't particularly complex, this gives a clear "start here" button to DeltaPrime.

Zaps on the horizon

The first Zaps to be added in addition to the Long / Short Zaps will be:

Borrow to withdraw

This Zap replicates an Aave loan with the option to use your collateral in liquidity pools. Say you want to borrow $50K USDC against your $100K BTC. This Zap will:

• Deposit $50K BTC into your Prime Account

• Borrow and swap $50K USDC for BTC in the Prime Account

By swapping your remaining $50K BTC to USDC, you now have $100K BTC in your Prime Account to use in DeFi protocols, while also having $50K USDC to spend on the expenditures of life.

Same token exposure, more utility.

GLP Hedge

A major reason for the GLP hedge's popularity is that the 70% GMX fees received are multiplied, while simultaneously price exposure of the underlying blue-chip assets is offset. Amplified upside, reduced downside.

Say you want to have 4x exposure to GLP, while having no price exposure in the current GLP weight. This Zap will:

• Borrow underlying assets at today's weights

• Mint GLP with those assets

You now have a (temporary) delta neutral position on GLP. While you collect fees accrued, you have no price exposure to the underlying assets. This is until, through trades, the weight of the underlying assets changes. You will have to rebalance your position to the current weights to become delta neutral again.

Follow up: GLP Rebalance

Rebalancing here means: repaying borrowed assets that have a lower portfolio allocation than the current weights, and borrowing assets that have a higher portfolio allocation. Where you would normally redeem and remint your GLP position to do this (paying additional fees in the process), DeltaPrime's Debt Swap feature removes this need. The Zap makes this even easier by:

• Debt Swap all borrowed assets to match underlying weights.

This zap resets the exposure back to 0, reducing the effects of Impermanent Loss in the process.

sAVAX carry

Carry trades on DeltaPrime offer an amazing opportunity for LSD (LST) maxis and minis. Those who trust the peg to hold, benefit from compounding their sAVAX with AVAX as a countertoken (carry trading AVAX). This amplifies their sAVAX yield, while running no price risk if the peg holds. With others willing to take this 'pegging' risk, anti-LSDers can deposit AVAX in DeltaPrime, receiving real yield close to the yield received by staking AVAX.

Say you are an sAVAX maxi who wants to compound their $100 worth of sAVAX. This Zap will:

• Deposit sAVAX into Prime Account

• Borrow 4.5x AVAX

• Swap all AVAX for sAVAX

• (optional:) farm sAVAX with partner DEX to receive additional swapping fees.

You can use all tokens from your Prime Account, whether deposited, borrowed, or swapped, to create LP positions. If you use borrowed tokens, you can provide capital into integrated DEXs beyond your usual limitations. This is capital that would usually be trapped as TVL in lending protocols but instead regains life to provide depth into Avalanche's (syntethic) DEX liquidity pools.

By providing liquidity through DeltaPrime you not only lower the slippage for people swapping on these DEXs, improving capital efficiency across the chain, but you also capture a multiplied percentage of the swapping fees these protocols pay to liquidity providers.

Interface

Filters

At the top of the LP interface, you see the tokens & DEXs integrated into DeltaPrime. If you want to provide a specific token, or to a specific DEX, you can select them here.

LP Token

Here it shows the token-pair you are providing, as well as the DEX the tokens are provided to.

Balance

Similar to the token balances in the Exchange section, your Balance shows how much of the asset you are holding. Contrary to what you might expect, these numbers do not say a lot about the tokens that you provided. This is where the dollar value comes in handy. In the USDC-AVAX pair in the example above we own ~0.000041 USDC-AVAX, which amounts to a pair of ~200 USDC and ~16 AVAX. Instead of the exact tokens, this number represents which part of the pool you own.

Composition (optional)

Some liquidity pools (eg concentrated & synthetic) don't always hold a 50/50 ratio of your assets. In those pools you often see a composition column. The composition can change based on its use in the underlying protocol, and is a key metric for managing price risk.

Trend (7D) (optional)

Some LP tokens show its pricing over the past 7 days. Initially this only shows for GMX, where counterparty exposure significantly affects profitability of the pool. In the future this will show for more pools.

Rewards (optional)

Pools that don't autocompound rewards or give bonusemissions in different tokens (like Trader Joe or Balancer) there is a reward column. This column shows the pending rewards. While there is a claim function, withdrawing from the position automatically claims as well.

TVL

This is the Total Value Locked (TVL) in the liquidity pool. In general: the higher this number, the more stable the APR shown, and the lower the impermanent loss (IL). This is a general rule, as trading volume plays a crucial part in APR just like the exact IL is dependent on the price divergence of both tokens within a pair. Additionally, with similar trading volume, a lower TVL pool will generate a higher APR than a higher TVL pool.

Min. APR

This is the APR that the pool gives at 100% health. By placing your full portfolio in this pool, without borrowing or compounding, you can expect to get the shown percentage in rewards, over the course of one year. This number does not take into account potential impermanent loss.

Max. APR

Multiply your returns. Sometimes, your returns can be multiplied through borrowing and investing. This depends on the yield received from the pool and the interest paid for borrowing. Where the Min. APY shows the returns with 100% health, the Max APY shows the returns with 10% health, if you put your full portfolio into this pool. While you could further lower your health for a higher APY, this also brings the account closer to liquidation. In the end, DeltaPrime provides you the freedom to manage your own risk, so the exact place on the 0%-100% health meter where you feel confident is all up to you. This number does not take into account potential impermanent loss and assumes you are borrowing the asset with the lowest borrowing APY.

Actions

If you already have LP tokens on one of the integrated DEXs, you can add them to your Prime Account here. This will increase your health, and allow you to use the LP tokens within your Prime Account to borrow against, or farm.

You can also choose to create an LP position directly through DeltaPrime. For this you need an equivalent value of the two tokens you want to create an LP of. If this token is in the LP asset list, you can create an LP token right there.

Withdrawing LP tokens works the same way as withdrawing other tokens. As long as you have the borrowed assets covered 1-1 on the Exchange, you can withdraw as much as you want, back to your wallet, up to the point of liquidation (which is not recommended).

If you instead want to unwind your LP tokens, you can do so by pressing "Unwind LP Token". When you do this, the value of your current LP balance will be split into the two tokens you started with. You can then freely use them across your Prime Account however you want.

Risk/Reward +

By using borrowed money to trade, you can decrease the capital needed for the same returns. This goes for positive and negative returns equally. For example, If you borrow 200% of your collateral to trade with, your profits and losses will move precisely three times as fast. Through borrowing, good traders need less capital to hit their target profits. Bad traders, on the other hand, run the risk of getting liquidated by the protocol. For this reason, you always need to ensure that your collateral is sufficient to keep your Prime Account solvent. If you make your trades right, borrowing can be a perfect tool.

Interface

All idle tokens are at the top of your portfolio in your Prime Account. Every row shows data specific to that token and is updated with every page refresh or transaction. Remember that it takes ~30 seconds for a transaction to be updated in UI. The data of a row consists of the following:

Asset

Under the asset column, you see the different assets tradable. It shows the image as well as the name of the asset. If the asset is borrowable, it also shows the current borrow APY. DeltaPrime integrates DEX aggregators like Yak Swap and Paraswap to provide the lowest slippage for any trade.

Balance

The amount of tokens you are holding in your Dedicated Smart Contract is shown under this column. These are the "free tokens", which can be used for farming or LPing.

Below the number of tokens, the dollar value of your asset is displayed. This value comes from the RedStone oracle.

Farmed

The balance that is currently in farming in vault protocols. Soon, this will be called "Active" with the liquidity provided to DEXs included.

Borrowed

The borrowed column only shows numbers for the assets that are borrowable. For these assets, it shows the number borrowed and its current dollar value. Before withdrawing any assets, you have to have a Balance equal or greater than Borrowed, to pass the withdrawal guard.

Power

This shows the Borrowing Power of an asset. Collateral with a Borrowing Power of 5x means you can borrow 5 times the value of the asset, given that the borrowed asset also has a 5x Borrowing Power. Read more about how the Borrowing Power is calculated here.

Trend

The trend shows the historical price data over the past 24 hours, displayed in a graph. TradingView is integrated into the graph to empower your trading decisions. Lines can be drawn and a range of indicators can be used.

Price

This shows the price of the given asset. As the price is sent as metadata with every transaction, this is calculated by using multiple data sources per asset to prevent price manipulation. The actual price while buying and selling might be slightly different due to slippage. Your max slippage can be set in the swapping modal

Borrow APY & Profit APY

Some assets show a Borrow APY below their name. This is the interest you pay for borrowing the asset. In the example above, DAI has a Borrow APY of 21.47%, meaning that ceteris paribus, you pay ~21.5% interest on every DAI borrowed over the course of a year.

Other assets have Profit APY. These are yield bearing assets like GLP, sAVAX or stETH. Value accrual differs per asset. In the example above, GLP has a Profit APY of 16.75%, meaning that ceteris paribus, you receive 16.75% worth of value on every GLP held over the course of a year.

Where the Borrow APY is DeltaPrime native (interest is paid to DeltaPrime lenders), the nature of the profit APY is token-specific. Please find the documentation of the respective protocols in Tokens, to read more about how every yield bearing asset's value-accrual works.

Actions

Depositing collateral increases your account health and allows you to borrow assets from DeltaPrime's liquidity pools. Depositing collateral is often the first action you take in the Prime Account.

By pressing this button, you can swap one asset for a different asset. You can do so with one of the integrated DEX aggregators. The second feature is that it shows your health Ratio post-transaction. A glimpse into the future. Keep in mind that these numbers are not continuously updated, so returning to your computer after streaming GoT and pressing "swap" might result in unexpected slippage or health ratio.

Here, you can find several other actions you can take on the assets page.

• Borrow

• Repay

• Swap Debt

• Withdraw Collateral

Borrow

You can borrow up to 5x your collateral. The exact borrowable ratio depends on the Borrowing Power of your borrowed and held assets.

Repay

Repay your borrowed assets here. While there is no deadline for repaying borrowed funds, your account will accrue interest as long as any assets are borrowed.

Swap Debt

The Swap Debt function allows you to swap the borrowed value of your assets, without having to hold the assets themselves. So if you have $200 USDC borrowed, but you'd rather have $200 ETH borrowed instead, you can change the borrowed source with the click of a button. You do not need to hold ETH or USDC to perform a debt-swap between these two assets.

Power of the Debt-Swap

Let's say you are bullish on ETH. You borrow 200 USDC, swap that to ETH and deposit it in a farm. You are now exposed for $200 to the ETH price. If your ETH appreciates, your debt remains 200 USDC and you make a profit. If ETH depreciates, your debt remains 200 USDC still, and you make a loss (having less assets to pay off the same debt).

If you become bearish on ETH, you might assume you will have to withdraw your ETH from the farm to sell it and reduce your ETH exposure. But what if you are bearish on ETH, but have your assets in a high-yielding farm you want to stay in? Or if you only want to reduce your exposure temporarily, anticipating a short-term drop, but long-term appreciation? In this case you might want to use the Debt-Swap instead.

By swapping your Debt from USDC to ETH you can reduce your ETH exposure to 0, or (depending on how much USDC was borrowed) even reverse it. All without removing your ETH from the farm it is working in. The reason this reduces your exposure similarly to selling the asset, is because a falling ETH price now not only reduces the value of your ETH in the farm, but simultaneously reduces the value of the debt that you will have to pay back. This leads to no loss or profit regardless of price movements: you are delta neutral.

Whenever you want your ETH exposure back, just reverse your debt-swap, swapping your debt back to USDC or one of the other stables available in DeltaPrime.

Withdraw Collateral

Pressing this button allows you to withdraw assets to your wallet. Withdrawing collateral reduces your health. Additionally, you need to cover all borrowed assets with your asset balances. Read more about the Withdrawal Guard here.

How to interpret the health meter

Let's have a look at the first and last row in the Asset Health table above:

Having 5x borrowing power, with $100 in collateral, means you could theoretically borrow up to $500 before getting liquidated. If you would borrow $250, exactly half of that, your health would instead be 50%. If you use the same $100 as collateral for an asset with 3x borrowing power, you would be able to borrow up to a maximum of $300. If you borrow $101, a little over one-third of your max borrowed amount, your health meter will drop to 66.3%, a little under two-third of your health.

Combining assets, the token price, and differences in borrowing power are taken into account, yet the basic idea stays the same: Your health meter represents the percentage of the value that you can borrow based on your collateral. If you have 60% health, that means that you have borrowed a total value of 40% of what you can borrow with your current collateral. A health meter of 0% means liquidation.

Of course, your collateral value changes, as this is based on your account value minus your total borrowed value. Through investments and trades, your account value might go up and down. If your investments make you a $20 profit in the first scenario, this will automatically be counted towards your collateral, increasing this to $120. This would increase your Asset health to 58.3%.

If you instead make unprofitable investments, dropping your total account value by $50, your collateral would be worth $50 with the same $250 borrowed value. That hits the 5x bringing your health to 0%. At this point positions in your Prime Account will be partially liquidated to automatically repay part of your borrowed funds.

An additional parameter that affects the predictability of the health ratio is the borrowing power of the tokens you are holding or borrowing. Depositing a 1x token and borrowing a 5x token, means you can borrow up to 3x the value of your collateral before hitting 0%. Depositing a 5x token and borrowing a 1x token means you can borrow up to 1.67x the value before hitting 0%. The reason for this is that borrowing an asset integrates that asset as part of your collateral, changing your total asset allocation in the process, and thus impacting your overall borrowing power. One way to avoid this is by swapping your borrowed tokens into the 5x token, improving the health meter with every swap. If you were to do this consistently, you would eventually have 5x borrowing power on your portfolio.

Predicting health

There are three main ways to predict your health based on certain transactions:

Long term it's best to understand how it works. If you are more of a numbers guy/gal, read and understand the Calculations section, if you instead prefer more laymen's terms, read the above Interpretation section. For any question, you can always join us on Discord.

Trying to create a balanced portfolio for the Medium term? Awesome. You will find a lot of value in the Health Playground of DeltaPrime. Here you can play around with token, price, borrowing power and allocation, to see how it affects your health meter.

Want to know how in the Short term one transaction will impact your health meter? With every transaction you can perform that may affect your health meter, a smaller version of it will appear in the bottom-left corner. This shows you what your health meter will look like when you push that button. In doing so, you'll never be surprised by a transaction changing your health!

Indicator

The health meter is an indicator; A tool that helps you evaluate your current portfolio. That being said, having low health does not directly translate into high liquidation risk. A portfolio with 2% health, where your collateral is the same token as the borrowed tokens, has no liquidation risk. The liquidation risk severely increases if you trade your assets for tokens with low correlation to the borrowed tokens.

For this reason, managing your portfolio as a borrower is paramount. There are different strategies explained in Investing strategies, but the full possibilities are endless. To get the most out of your risk management, make sure to collaborate and engage with the community of DeltaPrime.

We all know investing has its risks. But what if you just made an OG play, which resulted in lambo-deserving profits? Well, that's great! You probably want to withdraw some of that to buy it! In order to provide a safe environment for lenders, there are two elements the Prime Account focuses on whenever anyone withdraws collateral. The health meter and the Withdrawal Guard. Both may be encountered mid-withdrawal with the following error messages.

Health should be higher than 0%

Not all 'borrowed' is covered by its 'balance'. Update missing balance(s) to withdraw. Read more.

In DeFi, (yield)farming refers to the process of providing liquidity, with the intention of gaining passive income - yield. Although plenty of protocols and investors alike use liquidity providing and farming interchangeably, on DeltaPrime we make one direct distinction:

Farming interface

Asset

Staked

"Staked" of the pool shows how much tokens are currently staked across farms. Below that you have the amount of tokens, as well as the current dollar-value of the tokens staked in individual farms. If your yield gets compounded, this number will slowly rise. The value of your tokens might rise or drop as the underlying assets appreciate or depreciate in price.

Available

Min. APY

This is the APY that the farm gives at 100% health. By placing your full portfolio in this farm, without borrowing, you can expect to get the shown percentage in rewards, over the course of one year. This number does not take into account potential impermanent loss.

Max. APY

Multiply your returns. Sometimes, your returns can be multiplied through borrowing and investing. This depends on the yield received from the pool and the interest paid for borrowing. Where the Min. APY shows the returns with 100% health, the Max APY shows the returns with 10% health, if you put your full portfolio into this farm. While you could further lower your health for a higher APY, this also brings the account closer to liquidation. In the end, DeltaPrime provides you the freedom to manage your own risk, so the exact place on the 0%-100% health meter where you feel confident is all up to you. This number does not take into account potential impermanent loss and assumes you are borrowing the asset with the lowest borrowing APY.

Protocols

Health calculations

borrowing Power ratio (Pr): The borrowing power ratio of an asset is a number between 0 and 1 and describes how much you can borrow against this certain asset. It is calculated as:

Collateral (Ct & C): DeltaPrime being fully cross-margin, means that "collateral" as such does not exist, but is either a token-derived collateral value (Ct):

Or a portfolio-derived value (C):

In words: The dollar value of your collateral is equal to the dollar value of your assets, minus the dollar value of your borrowed tokens, either for one token, or for the whole portfolio.

Cross-margin Borrowing Power

Health of single asset (Ha)

Examples

Health of all assets (H)

Weights

In order to calculate a cross-margin portfolio, we need to take different borrowing powers and token prices into account. To do this we calculate the weighted collateral value of a token (Cw) and the weighted borrowed value (Bw) of a token. By multiplying either with both the token price and Borrowing Power ratio (Pr), we get a value that represents that token's weighted collateral/borrowing value.

Compounding the collateral weights of all tokens within one Prime Account, we get the portfolio's Total Collateral weight (ΣCw). Compounding the borrowed weights of all tokens within one Prime Account we get the portfolio's Total Borrowed weight (ΣBw).

By using the same formula we used with the single-asset health meter, but taking into account the different token prices and borrowing powers, we get:

Health Playground

The Health Meter

Health should be higher than 0%

How to solve this

To withdraw you can do two things:

• Withdraw less.

• Repay part of borrowed funds.

In this case, we repay 4500 of our 4800 borrowed USDT.

Now our account will be solvent even after withdrawing 500 USDC. We can withdraw successfully!

The health meter

The health meter indicates how close your Prime Account is to insolvency. If your health meter shows 100%, you have not borrowed any funds, and there is no risk of becoming insolvent. If your health meter shows 2%, your Prime Account is on the brink of insolvency. Depending on your constructed portfolio, this most likely means that a small price movement in your held or borrowed assets will make your Prime Account insolvent. The account gets liquidated at 0% health, which depending on the composition of assets has a minimum of 20% collateral ratio.

Borrowing Power

Tokens available on DeltaPrime have different borrowing powers: If you deposit $100 USDC, you can borrow up to $500 USDC or AVAX before liquidation; but if you deposit $100 PNG, PTP or QI, you can't borrow anything against it. USDC has 5x borrowing power, PNG has 0x.

To understand why different tokens have different weights, please read the safety section.

As your Prime Account is cross-margin, your borrowing power is shared across tokens. For more information on how it's calculated, read the health calculations below. If you instead want a simpler way to interpret the health meter, read the interpretation. Lastly, you can play around with your own health meter in the Health Playground.

DeltaPrime allows for a range of new and unique strategies, as well as redefining older -arguably outdated- strategies. The freedom that you have within the Prime Account enables you to design the strategy that suits you best, making the possibilities endless.

For starters, any strategy that you are currently running, can be performed better on DeltaPrime. Whether you borrow capital for on-chain gaming, airdrophunting, or need to liquify assets for anything in meatspace, we promise you: you can do it better on DeltaPrime. Check out the Efficient OC for more on this.

If you do want to check out the power of the new and unique strategies available on DeltaPrime, below we have outlined a few strategies that have become popular among the DeltaPrime community. Although they are popular, you have the complete freedom to design your very own strategy, or tweak them to your liking. After all, it is your strategy, and whether it fits depends on numerous factors, among which: your risk/reward, investment goals, available effort and time, expertise, etcetera.

Some strategies are easier than others. The simplest strategy by far is still to deposit into the DeltaPrime Savings pools for the most passive investment strategy. Other investors will do the work for you as they borrow your capital in return for interest; single click, no impermanent loss, and your capital is protected by liquidation bots.

Not convinced? Want to get everything out of your Prime Account instead? Great. Grab yourself a beer or coffee and let's dive in.

Overcollateralization (OC) is the normal borrowing play: borrow to keep exposure on a held asset, while using the borrowed assets in everyday life (groceries, mortgage, the usual). On first glance, DeltaPrime's walled garden makes it seem impossible to do this. After all, the cost of trustless undercollateralization is the inability to withdraw borrowed funds right?

Wrong. Efficient OC not only enables investors to use the exact same amount of fiat IRL-while keeping exposure-as on an overcollateralized protocol. Moreover, they can efficiently use their collateral simultaneously.

The Efficient OC is perfect for investors who want:

• To simply copy their existing strategies

• To liquify an asset, without losing exposure on said asset

• Their collateral liquid and yielding, even while fully functional as collateral

Example strategy: Wedding Gift

In this strategy, an investor is planning to propose to his wife with a nice $700 wedding ring, yet to be purchased. While he does have the money to buy it right now, he holds it in BTC.b, an asset he expects short-term bullish price-action on. The total value of the BTC.b is $1000. He has three options:

1) Save ~250 a month and propose after three months. 2) deposit $1000 BTC.b on Avalanche's main overcollateralized protocol, borrow $700 USDC against it, and get liquidated if BTC.b drops by 6.6% before mooning + save 3 months in order to unlock the BTC.b for DeFi.

Or 3)

• Deposit $300 BTC.b as collateral in Prime Account

• Sell $700 BTC.b for wedding ring

• Borrow $700 USDC

• Swap USDC for BTC.b

• Use $1000 BTC.b for DeFi

By using strategy 3, the investor can immediately liquify his assets, while keeping $1000 of BTC.b exposure. While from his perspective he borrowed undercollateralized, the protocol covers $700 in borrowed funds with $1000 in BTC.b, leaving him with the exact same exposure as in option 2: If BTC.b doubles in value, after repaying, he has the same capital gains as in option 2. Bonus: where in option 2 the BTC.b is locked as collateral, yielding 0.11%, with DeltaPrime, the investor can use the full $1000 BTC.b in integrated protocols for additional yield, potentially out-earning his interest. Efficient overcollateralization.

The Health Meter

This way of borrowing does not lead to higher liquidation risk: with option 2, at the time of writing, liquidation happens if BTC.b drops 6.6% in value (max LTV = 75%). On DeltaPrime, liquidation happens if BTC.b drops 16% in value (max LTV USDC -> BTC.b = 500%). Moreover, the amount liquidated in option 2 is 50% whereas, with DeltaPrime, only 25% gets liquidated. This means a softer cushion for the mistaken investor. Leaving him with more collateral should his price expectation turn out to be wrong.

What to check?

• You have sold the amount you want to keep exposure on

• You borrowed USDC on DeltaPrime, and swapped it for the desired asset

• (Optional:) You out-earn your USDC interest rate in a farm or LP

Important note

1. The goal of this strategy is to liquify part of your assets without losing exposure. It is very likely the Account APY is not at its optimal level, and possibly even negative (as it would be elsewhere).

Below is a list of the integrated tokens in DeltaPrime. DeltaPrime provides decentralized loans which can be swapped for these tokens. This list includes their borrowing power, Snowtrace contract, and a link to their creator's platform. When you deposit funds on DeltaPrime, your deposit might be swapped for these tokens. While the development team attempts to only integrate high-quality tokens: Always Do Your Own Research (DYOR) before investing.

Name: Name as it is shown in DeltaPrime's UI Contract Name: The actual token name. Wrapped AVAX, bridged Bitcoin and Ether, etc. Borrowable: Whether you can lend and borrow this token on DeltaPrime Borrowing Power: How much you can borrow against this token when deposited in your Prime Account Contract: Smart contract on Snowtrace, showing all details of the token Creator: Creator of the token

Avalanche

Arbitrum

Below is a list of the integrated protocols in DeltaPrime. DeltaPrime provides decentralized loans which can be used for these integrations. This list includes their main purpose and a link to their platform. When you deposit funds on DeltaPrime, you are indirectly investing in these protocols. While the development team attempts to only integrate high-quality protocols: Always Do Your Own Research (DYOR) before investing.

Avalanche

Current integrations

Upcoming Integrations

Indirect integrations

Farming protocols like Vector and Yield Yak often optimize Liquidity Providing to other protocols. This means that providing liquidity through them might also expose your capital to other protocols. For sake of transparency, these protocols are listed below.

Arbitrum

Current integrations

Upcoming Integrations

Indirect integrations

Got some amazing DeltaPrime content, made by your own hand? Awesome! Let us know!

Vedran Mijatović - Moj Kripto

Lucas Baker - Jump Crypto

Margim

BETA VERSION

Harry.Avax

ALPHA VERSION

Crypto Cam

Caesar - Heroes of NFT

Dammy Dee

Valency

Intechlligence

KCee

CryptoBoy

Withdrawal guard

The origin

Not all 'borrowed' is covered by its 'balance'. Update missing balance(s) to withdraw. Read more.

When you get this message, it might help to see visually what this entails. If you were confused and pressed "Read more", you ended up here. Welcome! Here is what it means and how you solve it in order to withdraw:

Imagine you have 1000 USDC in your Prime Account with 300 borrowed USDt deposited in a farm:

If you try to withdraw any USDC, the withdrawal guard will prevent this. The following error message will be shown.

This happens because some assets have borrowed value larger than the balance. While USDC is covered, with a Balance (1000) larger than Borrowed (0), for USDT, this is not the case. USDT's Balance (0) is smaller than Borrowed (300).

How to solve this

To unlock withdrawing, the Balance must be larger than the Borrowed for every borrowed asset. In this case, only USDT has been borrowed, so that asset needs to cover its Balance value by at least its Borrowed value.

There are two ways to solve this.

• Withdraw farmed or LP positions to increase the balance.

• Swap any other asset to the borrowed asset to increase the balance.

In this example, we swap 301 USDC for 301 USDT. This brings our balances to the following values:

After the swap, we have USDC assets with a Balance (699) bigger than Borrowed (0), and we have USDT assets with Balance (301) bigger than Borrowed (300).

Success! Withdrawing is now unlocked.

Discord

Medium

Twitter

HealthRatio

HealthRatio used in smart contracts differs from the one displayed in the UI. Health meter presented in the UI stays inbetween 0 and 100%; 0% meaning that the account is insolvent. HealthRatio used by smart contracts is defined as ThresholdWeightedValue / Debt. Those two values can be obtained by calling the SolvencyFacetProd.sol:getThresholdWeightedValue() and SolvencyFacetProd.sol:getDebt() respectively.

Get SmartLoan address

In order to perform liquidations one first needs to obtain SmartLoan(s) address(es) which can be achieved by interacting with the SmartLoansFactoryTUP (TransparentUpgradeableProxy) contract that is deployed on the Avalanche mainnet under the address 0x3Ea9D480295A73fd2aF95b4D96c2afF88b21B03D.

The SmartLoansFactory.sol contract exposes a public getAllLoans() method that returns an array containing all SmartLoans addresses. It is also possible to obtain a SmartLoan contract address for a specific user (wallet) by calling the following method SmartLoansFactory.sol:getLoanForOwner().

Get SmartLoan full status

With the use of a SmartLoan address one can call that contract's SolvencyFacetProd.sol:getFullLoanStatus() method that returns an array consisting of the following values [totalValue, debt, thresholdWeightedValue, healthRatio, isSolvent].

To execute a liquidation of a chosen loan one has to execute the SmartLoanLiquidationFacet.sol:liquidateLoan() method.

The assetsToRepay parameter specifies which assets are going to be repaid back to the lending pools. The amountsToRepay parameter defines in what amounts should the selected assetsToRepay be repaid. The _liquidationBonusPercent parameter defines the liquidation bonus % value. It's value must stay inbetween 0 and _MAX_LIQUIDATION_BONUS. _MAX_LIQUIDATION_BONUS can be can be obtained by calling the SmartLoanLiquidationFacet.sol:getMaxLiquidationBonus() method.

The above values should be calculated in a way that results in a loan which HealthRatio ∈ <1;_MAX_HEALTH_AFTER_LIQUIDATION>.

_MAX_HEALTH_AFTER_LIQUIDATION can be obtained by calling the SmartLoanLiquidationFacet.sol:getMaxHealthAfterLiquidation()method.

Unstake positions

By default no swaps or unstaking takes place during a liqudiation. The liquidator specifies the repay amounts, supplies tokens if needed and at the end the liquidator receives tokens from the account being liquidated equal in the USD value to the USD value of the tokens supplied (+ the bonus fee). However, in some cases the staked positions are non-transferrable (e.g. VectorFinance). For this reason it is possible to unstake one's staked positions despite not being an owner of that given loan. This is only possible in a scenario where the loan is already insolvent and serves the purpose of preparing the loan to be further liquidated. You can obtain loan's staked positions using the following method SmartLoanViewFacet.sol:getStakedPositions(). Use the balanceSelector & unstakeSelector methods selectors to check the balance of a staked position and to execute the relevant unstake() method respectively.

Example liquidation bot implementation

Avalanche

All of the contracts are verified in the snowtrace block explorer.

Arbitrum

All of the contracts are verified in the arbiscan block explorer.