NX Finance Whitepaper
  • WELCOME TO NX FINANCE
    • ❓What is NX Finance
    • 💡Background
    • 🧐FAQ
    • 🪂Airdrop
      • 🏃Get Started Now!
      • 💯How to Earn Points
      • 👯Referral
      • 🤝Teams
      • 🏕️Nadventure FAQ
      • Nadventure Pre-season 2
    • 🗺️Roadmap
    • 👣User Guide
      • 🛝Slippage
  • PROTOCOL MECHANISM
    • ⚙️How NX Finance Works
    • ⚖️Strategy 1|Fulcrum Strategy
      • 👓User Interface Introduction
      • 🫳Lending Vault
      • 🫴Leverage Vault
      • 💸Profit & Loss
      • 💵Fulcrum Strategy Reward Calculation
    • 💰Strategy 2 | Gold Mining Strategy
      • 🔨Mechanism
      • 📉Interest Rate Curve
      • 🟢Solayer Integrtion
      • 🟣SolanaHub Integration
    • 0️⃣Strategy 3|Delta Neutral Vault
      • 📉Funding Rate Reversion Vault
        • ❔Funding Rate Reversion Vault FAQ
      • JLP Delta Neutral Vault
        • ❔JLP Delta Neutral Vault FAQ
      • ❗Risks of the Delta Neutral Strategy
    • 🧑‍⚕️Health Factor
    • 💧Fees
    • ‼️Risks
  • NX
    • 🥩Staking
    • 🪙Token Distribution
      • 🔥Token Burn
    • 🍯IDO Details
  • 📪Resources
    • 🖼️Brand Kit
  • AUDITS & SECURITY
    • 🔐Audits
    • 🔮Oracle
    • 🧑‍🎨NX UXUI Bounty
  • Terms & Privacy
    • 📁Term of Use
    • 🔏Privacy Policy
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On this page
  • Borrowers
  • Lenders
  1. PROTOCOL MECHANISM
  2. Strategy 2 | Gold Mining Strategy

Mechanism

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Last updated 2 months ago

Borrowers

  1. Borrowers select the preferred protocol for points farming and specify the leverage size and borrowing asset they want

  2. Leverage users deposit collateral and choose their leverage size to request lending capital

  3. NX Finance matches the borrowing request, securing adequate liquidity in the lending pool

  4. The necessary capital is sourced from the lending pool to meet the requested leverage amount

  5. Borrowers receive the points and pay APR (according to real-time utilization rate) to the lenders

Lenders

  1. Lenders deposit USDC to the lending vault

  2. NX Finance matches the borrowing request, securing adequate liquidity in the lending pool

  3. Borrowed capital combines with the deposited collateral to mint / swap the corresponding tokens

  4. Lenders enjoy extra APR paid by borrowers

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