🌱What is Mole
Last updated
Last updated
Mole is a DeFi protocol providing savings, leveraged yield farms and funds.
If you don't want to learn too much product details, you can skip the principle introduction. Go straight to deposit in savings & leveraged yield farming.
Suitable for users unwilling to bear any losses, it can continuously and steadily make money. Operation guide:
If you are willing to take on low risks and achieve better returns, it is recommend to use market neutral strategy in yield farming. It is very simple to operate. Suitable for users willing to bear short-term losses. In the first 2 weeks, due to the Uni V3 algorithm feature, short-term losses of 0.5% -5% will happen. However, it is high probability to earn more than savings in medium&long term . There is basically no liquidation risk for market neutral strategy.
Operation guide:
Mole borrows tokens from savings pool as leverage for the leveraged yield farming, and then deposits them into Dex as a liquidity provider to earn profits.
Users deposit in the savings pool. When users of leveraged yield farming and asset management funds use leverage, they can choose to borrow money from the savings pool as leverage. At the same time, users need to pay a certain amount of interests to the savings pool.
The level of interest rates will change with utilization ratio. When market capital shortage and the utilization ratio is high, the interest rate will be high, encouraging users to deposit more and lend less. On the contrary, when the market capital are sufficient and the utilization ratio is low, the interest rate will be low, encouraging users to lend more and deposit less.
Many other lending protocols require over collateral because they allow users to withdraw tokens borrowed from the lending pool. For example, if a user wants to borrow 100 USDT, the user needs to mortgage collateral worth at least 120 USDT at a certain rate to ensure the safety of the loan.
Mole does not allow users to withdraw borrowed tokens. It only allows them to use loans inside leveraged yield farms and asset management funds. For example, a user uses 100 USDT as the principal and borrows 200 USDT from the lending pool as leverage. Since the user cannot withdraw the 300 USDT, it can only be deposited in the Dex liquidity pool, so Mole doesn't require over collateral. Assume the position drop from 300 USDT to 240 USDT, liquidation will be triggered. 200 USDT will be returned to the savings pool to ensure the safety of loan. After deducting the fee, the remaining 40 UDST will be returned to the users of the leveraged yield farms.
For details:
Users deposit liquidity to the cooperative Dex Cetus by Mole. At the same time receive rewards from Dex. Users can choose whether they need to increase leverage to obtain more profits. For example, if a user has a principal of 100 USDT, the user can choose to borrow 200 USDT from the savings pool to obtain 2 times extra return. At the same time, user needs to pay borrowing interests to the savings pool. It is a good deal if the farm rewards is bigger than the borrowing interests.
Users can choose not to use leverage, then it will be common liquidity staking like most of the other DeFi protocols.
Holding a position in leverage yield farming is equal to LONG operations. Borrowing from the savings pool is equal to SHORT operation. Mole has both LONG and SHORT operations while other liquid staking protocols only have LONG. It brings unlimited strategies possibilities.
E.g. Users can open position similar to hedge funds in the leverged yield farming.
Also users can open position similar to index funds in the leverged yield farming. Or benefit from the price goes down by the SHORT strategy.
Mole uses uninterrupted auto robots to help users automatically adjust the price range of CLMM's liquidity market making, which can effectively prevent prices from crossing the boundary. It can't obtain farming rewards if crossing the boundary. At the same time, Mole intelligent algorithm can effectively improve the capital utilization efficiency, thereby increasing users’ profitability.
For details:
Mole funds essentially help users auto manage positions in leveraged yield farms. It contains many kinds of funds, such as bond funds focusing on stability, hedge funds focusing on hedging risks, index funds focusing on long-term price growth, etc.
Mole uses smart contracts and machine learning artificial intelligence algorithms to help users achieve the best balance between low risk and high returns. At the same time, Mole asset management funds have no risk of liquidation.
Mole bond fund open dual stable tokens position in the leveraged yield farms. It has extremely high stability. Mole will auto select the optimal leverage ratio to obtain the maximum rewards for users.
Mole hedge fund will open both LONG and SHORT positions for users to hedge the risk of token price fluctuations and earn stable rewards.
Mole index funds will retain the exposure to token price fluctuations in the positions of leveraged yield farms, so that it can track the rise and fall of token prices, also earn extra farming rewards.
Mole liquidity is deposited in the cooperative top tier Dex. Mole currently cooperates with Cetus, which is the biggest Dex on Sui chain. Mole will continue to cooperate with other leading exchanges in the future.
The Uni V2 (AMM) algorithm is relatively simple, with many liquidity protocols supporting it. While the Uni V3 (CLMM) algorithm is more complex. Mole is the first asset management protocol on Sui that perfectly supports both AMM and CLMM algorithms.
Mole is the first asset management fully compatible with AMM and CLMM algorithms on Sui chain.
In the past few years, Dex has achieved good results with the AMM (Uni V2) algorithm . Recently the CLMM (Uni V3) algorithm has become more and more popular with higher capital utilization efficiency, lower slippage. Dex is gradually turning to the CLMM algorithm.
Liquidity providers of CLMM face more complex algorithm difficulties.
Mole cooperates with top tier Dexes. The liquidity of Mole is deposited in Cetus currently. Mole uses smart contracts and AI algorithms to perfectly build a professional liquidity provider and asset management fund solution.
Mole's liquidity provider algorithm can perfectly resolve a series of tricky problems brought by the Uni V3 algorithm, such as:
How to solve the issue of crossing boundaries in the Uni V3 price range? How to avoid higher impermanent losses of CLMM? How to auto optimal the price range of liquidity provider to achieve a good balance between lower impermanent losses and higher rewards? How to auto compound interest? etc.
Mole provides fully automated algorithmic hosting to address these problems perfectly.
Mole is the first to use artificial intelligence algorithms for best revenue in funds on Sui chain.
For the CLMM algorithm, how do users set the price range when providing liquidity? If the price range is set too narrow, although the capital utilization efficiency and Dex reward speed will be improved, the impermanent loss will become larger. The price range cross-border problems will become more frequent. This will result in frequent position adjustments. The final value losses will become greater.
On the contrary, if the price range is set too wide, the capital utilization efficiency and Dex rewards speed will become lower.
To solve these problems, Mole uses machine learning algorithms SVM (Support Vector Machines) and DNN (Deep Neural Network) to use on-chain data as training samples to train AI models and use the models to predict the best price range and position adjustment parameters. Finally obtain the most optimal return for users.
• Traditional lending pools require over collateral, while borrowing funds from Mole savings pools with leverage does not require over collateral
• Mole savings pool cannot be directly deposited into the borrower's wallet. Instead, they are borrowed as leveraged when opening a position in leveraged yield farming, and ultimately deposited into the cooperating Dex through Mole's contract. It brings more security.
• Mole's leverage means more tokens and more rewards
• Mole has both LONG and SHORT operations. In contrast, Dex only has LONG operation for its own liquid staking. Users can benefit from LONG and SHORT operations for more strategies.
E.g. Users can open position similar to hedge funds in the leverged yield farming.
Also users can open position similar to index funds in the leverged yield farming. Or benefit from the price goes down by the SHORT strategy.
• Mole supports users to deposit dual tokens in any ratio as liquidity provider. Mole will auto exchange them to the specific ratio required by Dex. It is very convenient for users. While Dex requires the dual tokens should be deposited in a very specific ratio.
• Mole algorithm can auto optimize the price range of Uni V3 and achieve high returns.
• Mole algorithm can continuously rebalance and auto adjust the price range of Uni V3 to avoid exceeding the range. When user deposit liquidity in Dex, if price out of range, it will lead to bad result that can't get rewards. Even worse is the original two tokens pair will be only one token of which is the lower price.
E.g. When deposit in Dex SUI-USDC. if SUI price goes down, out of price range, the original SUI-USDC will be all SUI tokens. If the SUI goes up, it will be all USDC. Always turn into the lower price token when out of price range.
• Mole can help users auto reinvest and compound interests.
• Mole liquidity provider can maintain zero position exposure, known as a market neutral strategy, to avoid market risk. Simultaneously receive rich rewards.
• Mole provides automated asset management funds, including bond funds, hedge funds, and index funds (under development)
Mole has not released tokens at present based on market conditions. According to the activity of community users and the use of Mole products, it will comprehensively balance various factors, which is an algorithm conducive to motivating users.
