Pseudo Market-Neutral strategy involves a series of actions and storage that require gas fee, including:
- 1.Calculating the correct amount of non-stable coins and stable coins to borrow
- 2.Borrowing the calculated amount of the two tokens from their respective lending pools
- 3.Calculating the amount of tokens needed for liquidity and swapping as required
- 4.Harvesting DEX yield, swapping tokens, and adding liquidity (aka auto compounding LP)
- 5.Adding the two tokens to liquidity pool
- 6.Storing the position details to start receiving SINGLE reward for the position holder
- 7.Storing the capital value and capital-protection ratio on the contract for capital protection purpose
Single Finance does not make any profit out of the gas fee. Gas fee in Cronos chain for complex transaction is relatively high compared to some other chains in the market, and Cronos is working on lowering the gas in the coming future.
When you compare the gas cost with similar services on other leveraged yield farming platforms, you may discover that we have already optimized the gas to the best of our ability! And we won't stop here. Our team strives to optimize the gas and hopefully launch V2 soon.
Alphafinance V2 on Avalanche
Alpacafinance on Binance Smart Chain
Single Finance on Cronos Chain
Open leveraged farming position
Manually 0.117-0.237AVAX (~US$2.4-4.8)
Manually two positions 0.027-0.04BNB (~US$7-10.4)
Our team reviews the parameters from time to time. There are a few figures we will take into consideration when determining the fee ratio:
- 1.The balance between the charged fee (used to burn SINGLE) and SINGLE rewards
- 2.The fee ratio of other leveraged yield farming facilities
- 3.SINGLE rewards to compensate the fee
100% of the fees goes to protocol profit redistribution back to SINGLE stakers, as well as the burning mechanism. The reason that we charge fees is to regulate buying demand for SINGLE from the protocol and upkeep the deflationary mechanism.
Strategy Performance Fee
19% of net profit (not applicable for net loss positions)
Lending Reserve Fee
Capital Protection Gas Cost
US$10 (Cronos) / US$5 (Fantom)
Other platforms usually charge performance fee based on yield while our strategy performance fee is charged only if the positions are making profits. Strategy Performance Fee is only applicable to Pseudo Market-Neutral Strategy.
Case 1: Capital: $100; Net Equity Value: $110; Strategy Performance Fee: $10*19%=$1.9
Case 2: Capital: $100; Net Equity Value: $90; Strategy Performance Fee: $0
Furthermore, 100% of the strategy performance fee will be used on SINGLE buyback.
- 1.10% fee is distributed as performance profit sharing to SINGLE Lending Pool Vault stakers. (as Protocol APR)
- 2.9% fee goes to SINGLE buyback and burn.
Single Finance provides Capital Protection to Strategies and Leveraged Yield Farming. The Capital Protection Fee per position per close is $10 (for Cronos) and $5 (for Fantom).
When the Net-Equity-Value-to-Capital ratio (after paying Capital Protection Fee) hits your configured Capital Protection Ratio, Single Finance will close your position and pay gas cost for you. The gas cost will be covered by this Capital Protection Fee.
If the position value is too far below US$200 (for Cronos) or US$100 (for Fantom), the position could be easily capital-protected as there is little equity buffer after paying the Capital Protection Fee.
E.g. A position of $200 is opened in Cronos with capital protection ratio set at 90%. When the Net-Equity-Value drops to $190, the position will be capital protected and $10 will be deducted as Capital Protection Fee, returning the final $180 protected principal in USDC to the user's wallet.
There are three common scenarios:
- 1.For adding positions, the assets you want to borrow may not be available for borrowing due to high utilization of lending asset pool. You may need to wait until the market deposit more assets to the lending pool.
- 2.If there are no specific error messages and you can't trigger the MetaMask/wallet pop-up approval windows, gas estimation might have failed. Please contact our support team and we will come to your assistance.
- 3.If both gas estimation and MetaMask action approval succeed, but adding position action still fails, it is likely to be a problem with slippage. To protect the user's best interest, we have set a 0.5% slippage tolerance. If the first attempt fails, the contract will increase the tolerance to 2% for a final attempt. If a 2% slippage tolerance still can't get the tokens swapped, the price impact is too high at the moment. We suggest you try later instead of re-approving again.
It is a known bug of EVM-compatible chains. Due to gas overflow, while the transaction may not be viewable on EVM level, it was actually executed at underlying chain level. For Cronos, the transaction is mined at the Cosmos chain level.
If this happens to you, please stay clam and provide your wallet address and transaction execution time to customer support. Our team will identify the block number along with other related information, and use smart contract to add your position detail back to our SubGraph such that you can view and track your position on our platform. You may, however, still not be able to find the related transaction info from the Chain Explorer.
If this happens to you, please stay clam and provide your wallet address and transaction execution time to customer support. Our team will identify the block number along with other related information, and use smart contract to add your position detail back to our SubGraph such that you can view and track your position on Single Finance. You may, however, still not be able to find the related transaction info from the Chain Explorer.
There are two main reasons:
- The "Capital" value shown in the portfolio area is in fiat USD, which is calculated according to the real-time price of the supplied assets at the moment of position opening. There is always slight deviation even if the supplied asset is a stablecoin. (e.g. 250 USDC deducted from the wallet, capital marked as $249.65)
- There is Price Impact during swapping between tokens to create such farming position, user should take Price Impact estimation into consideration before the action. (Further illustration on Price Impact)
Same as the reasons when opening a position:
- The "Current Value" shown is in fiat USD, which is calculated according to the real-time price of the position net asset at the moment of withdrawal.
- There is Price Impact during swapping between tokens to repay debts and close such farming position, user may refer to the Price Impact estimation in the withdrawal window. In case the estimated Price Impact is high, users are suggested to close their position by batch. Single Finance also calculates the optimal withdrawal amount to limit the Price Impact level to be within 1%. See further explanation of Price Impact here.
- For manual harvest farm, "Current Value" = "Equity Value" + "Harvest Rewards", thus it is better to refer the withdrawal token amount to the Equity Value.
Our Capital Protection Bot tracks the latest net equity value of every position. Once the estimated closing value hits the capital protection threshold, the bot will execute the closing action.
There are two main reasons for the slight deviation:
- 1.To better protect our users' positions from price attack / short-term price fluctuation in the liquidity pool, we take reference from external price oracle (e.g. Chainlink) to reach the capital protection decision. Due to the price difference between the price oracle and the liquidity pool itself, the final outcome may be different.
- 2.Price Impact would be one of the associated factors as token swap is involved in capital protection. Though Price Impact is taken into consideration for the protected value estimation, best path of swapping is chosen and Stable Swap is employed in order to minimize the Price Impact, there may still be deviations depending on the actual market situation.
They are separately two types of rewards.
The SINGLE rewards under yield farming is specific to a number of farms (e.g. SINGLE-USDC in VVS), while the reward shown under "Total SINGLE earned" is the protocol rewards which can be further boosted by holding veSINGLE. "Total SINGLE earned" also includes all the SINGLE reward earned by lending, borrowing, strategy and yield farming position opening.
The two figures are not double-counted, one should sum up both figures to estimate his/her total SINGLE earned.
Single Finance has migrated VVS farm V2 from V1 recently. After the migration, some of the yield farming reward has changed, take VVS SINGLE-USDC farm as an example:
- original yield farming reward: VVS (auto-compound)
- new yield farming reward: SINGLE (manual harvest)
In this case, the auto-compound yield farming figure will be retained in the upper section of the breakdown as usual after the migration while the new yield farming reward (require manual harvest) will be shown separately after "Equity Value".
After Capital Protection, the protected principal will be converted to USDC and deposited directly to your wallet. Please check the USDC balance in your crypto wallet. If you have not added USDC in the wallet, you may import it as a new token with the following token contract address of USDC.
The residual value of the position will be returned in your original supplied token after debt repayment and liquidation fee.
Not at all, Single Finance does all at the backend for you, just enjoy with our “Single-Click”.
Nil, all the fees and borrowing interests stay the same.
No, the boosting effect will be added automatically at the backend.
Yes, you will enjoy the boost for all your existing positions, just not be able to put in extra principal.
You may stake your SINGLE in “Boost” page and start to accumulate veSINGLE. Please be reminded that only claimed veSINGLE will be counted.