Pinnata

Pinnata is a leveraged yield farming protocol that offers yield farmers access to leverage when providing liquidity to a decentralized exchange on Celo.

In return, the protocol is able to offer incredibly high interest rate to lenders without the direct risks of yield farming. On one side, lenders lend out their assets in a traditional DeFi money market with variable interest rates based on utilization rate and no locking period. On the other end, more risk-seeking traders can enter a farming position on any of the supported protocols, borrowing from the money market and using their existing position as collateral. In the case that the borrow is worth more than the collateral multiplied by some safety factor, the borrows are liquidated and the lenders are protected. Hence, the Pinnata protocol supports DeFi on Celo in two ways. One by directly by offering high interest rates on idle assets, and indirectly by acting as a liquidity engine for the ecosystem, enabling greater capital formation and price discovery.

This depends on several factors including the fees earned from liquidity providing, rewards offered through our $PINN liquidity mining program, and the amount of leverage you and other LP's take on.

While they innately both provide liquidity to an Automated Market Maker (AMM), yield farming pools have the added benefit of earning extra rewards from staking LP tokens. These rewards come in the form of a DEX's governance tokens.

The debt ratio is the collateral amount over the borrow amount with a safety factor that accounts for the volatility of both assets. This determines the amount of leverage that is available for a particular asset. In order to stay away from liquidation, the debt ratio can never pass 100%. Once the debt ratio is above 100%, the position can be liquidated by any third party.

This is dependent on several factors, most notably the pool itself. On stablecoin pairs, a liquidity provider could in theory access 9x leverage on their initial capital, which the maximum amount of leverage. However, most farms will have a maximum leverage of 2.5x to protect investors.

We currently only support assets on Celo (e.g. CELO, cUSD, cEUR, MOBI, and UBE) In the near future, we will support cross chain assets as well as more Celo-native assets such as governance tokens.

The Fountain of Youth is a fork of the Iron Bank, a simple money market with much of the functionality taken away. It is the underlying lending/borrowing money market used by Pinnata.

When the debt ratio is at or above 100%, leveraged positions are at risk of liquidation. In quantifiable terms, the borrowing credit, cannot exceed the collateral credit.

Yes! The Pinnata contracts were audited by Bramah Systems, LLC. on July 2, 2021. Please note, there since have been slight, low-risk additions to the contracts to allow Pinnata integration with new pools. Check our Audit tab for a link to the report and diff.

Positions are defined by collateral and borrows. Collateral is the current value of the entire position multiplied by the collateral factor for the underlying assets, usually the lp token for that pool.

Each asset also has its own borrowing factor. A borrowing credit value determines how much credit (received from collateralizing an asset) is consumed from borrowing an asset.

The collateral factor and borrowing factor of an asset depend on the volatility of the asset price. If an asset is volatile, the collateral credit will be low and the borrowing credit will be high. For instance, if a user supply CELO as collateral to borrow cUSD, he would be able to borrow more cUSD than if he were to otherwise supply CELO to borrow UBE (or any less stable asset).

In order to make this simpler for users, Pinnata does not require the user to manage one's debt ratio, and the amount of leverage accessible to a yield farmer is automatically calculated in with a 100% maximum debt ratio.

Once the debt ratio exceeds 100%, a user is automatically at risk of liquidation. In this case, a user will want to head over to the position tab and;

Add collateral to their position

Payback their loans

In the Earn page of Pinnata, investors can lend assets to a money market where APR is generated from users on the other end borrowing.

Here, users can see available yield farming pools from different decentralized exchanges on Celo.

In the Positions tab, a user can see his/her position in one of the Pinnata supported yield farming pools. This is where you can see a breakdown of your position including how much leverage you took out and position APR.