[Serenity Premium] DeltaPrime [Initial Review Mar 2023]

DeltaPrime is a lending protocol that operates on the Avalanche blockchain with a unique leveraged lending feature. Similar to other platforms such as Alpha Homora, DeltaPrime enables borrowers to obtain loans that are up to 500% of their collateral value.

The Strategy in this Article

This strategy is providing liquidity into DeltaPrime USDC Depositor pool.

Current yield: 12.2% (1 March 2023)

Our risk assessment: Medium

Our yield projection based on this week's Benchmark Yield: 13.1%

The Concept and How the Protocol Works

Overview

DeltaPrime is a leveraged lending and borrowing protocol, with up to 5x leverage. When a user deposits $100 worth of tokens, they can borrow up to $500 worth of tokens. A sub account, termed Prime Account, is created internally under the smart contracts of DeltaPrime for the borrower.

With their newly created Prime Account, users have the flexibility to utilize their borrowed funds for a range of activities such as staking, swapping, or other potentially profitable ventures. For example, a user could deposit USDC as collateral and borrow up to 5 times the value of a combination of assets such as AVAX, BTC, and ETH, and then convert these assets into GLP to earn yields. GLP cannot be borrowed directly through DeltaPrime at this time.