๐งFAQ
General
What is NX Finance?
NX Finance is the yield layer in Solana which provides yield leveraging and point farming strategies
How does Fulcrum Strategy work?
NX Finance delivers a variety of vault options for different tokens and risk levels. The intuitive strategies offer some of the highest APR found within the Solana ecosystem.JLP will be our first asset to leverage in Fulcrum strategy, users can leverage up to 5X.
How does Gold Mining Strategy work?
Gold Mining Strategy (GMS) offers a reliable mechanism for borrowers and lenders to augment their points & interest within point farming pool, fostering risk redistribution.
What is the vision of NX Finance
Our vision is to position NX Finance as the central yield layer on Solana, seamlessly integrating the entire ecosystem. We aim to offer a comprehensive suite of strategies that meet the varied needs of our users, from conservative to high-risk preferences, while enhancing potential yields. Through NX Finance, the potential of airdrop points can also be fully unleashed, empowering users to maximize their airdrop rewards.
What is the roadmap of NX Finance?
In short, we will expand our horizons to different Solana ecosystem projects and provide new strategies for users. Read the details on Roadmap.
Strategy 1 - Fulcrum Strategy
What is Fulcrum Strategy?
Fulcrum Strategy (FS) allows users to leverage interest-bearing assets for yields with options for up to 5X leverage.
What is the yield of the JLP?
JLP yields originate from 75% of the fees from Jupiter perpDex transactions, creating an APR for JLP holders.
Where can I see my JLP yield?
The JLP yield reflected as an increase in the JLP token price.
Do I need to stake to get the JLP yield?
No, JLP yields are embedded in each token, accruing with trades. So you do not need to stake or harvest your yield.
Borrower
What is the maximum leverage multiple?
5X is the largest leverage multiple we offer in current stage. ๏ผ10X is coming)
What is the maximum APR you can earn?
Theoretically, there is no limitation for maximum APR since it depends on the performance of JLP. As long as it grows, the APR will increase simultaneously. Therefore, please refer to our official website to capture the latest APR.
Why is NX JLP APR different from Jupiter APR?
Our APR calculation methodology differs from that of Jupiter. Jupiter derives their APR based on the JLP APR from the preceding week, whereas NX Finance utilizes the average JLP APR from the past four weeks. This approach is designed to ensure a more stable and sustainable APR over time, thereby reducing the risk of the lending APR surpassing the JLP APR.
What are the implications of borrowing SOL to leverage JLP?
It serves as a hedging strategy. By borrowing SOL to leverage JLP, when the value of SOL decreases, the USD value of your debt decreases. Since a significant portion of JLP is composed of SOL. Therefore, it can serve as a hedge against the impact of SOL's decline on JLP's price.
When I borrow USDC/USDT/SOL, where are they not showing in my wallet?
Assets you borrowed from the lending pool remain within the NX smart contract, so they will not be transferred to your wallet. Instead, the contract automatically executes the leverage process and opens a position for you.
What are the charges for borrowers?
Performance fee - 10% of profits
Withdrawal fee - No withdrawal fee
Liquidation fee - 5% of liquidation amount
What is the risk for borrowers?
The main risk for borrowers is a significant drop in JLP's price, which could lead to liquidation.
Lender
What is the deposit APR?
The deposit APR depends on the real-time utilization rate, which can reach up to 45%. So please refer to our official website to view the latest APR.
Does trader profit and loss affect us significantly?
No, it doesn't. Although traders can make a profit, the USD value of JLP remains the same. JLP lends assets to traders and charges a fee, so even significant fluctuations in trader profit and loss don't impact the JLP price.
What is the risk for lenders?
The most prominent risk for lenders is the saturation of utilization rate. When the UR reaches 100%, lenders cannot withdraw their assets from the pool. To prevent this from happening, we provide an anti-saturation interest model to incentivize users to provide liquidity to the pool before it gets saturated.
What is the charge for lenders?
There is NO charge for lenders, lenders can deposit or withdraw their deposits whenever they want.
Strategy 2 - Gold Mining Strategy
What is Gold Mining Strategy?
Gold Mining Strategy (GMS) allows users to leverage airdrop points and offer higher yield for lenders.
What can lenders get when they lend assets to borrowers?
Lenders can receive an extra APR since borrowers will pay borrow rate to leverage the points
What is the risk for lenders and borrowers?
Lenders
100% capital utilization rate: Users may not be able to withdraw their deposit immediately due to the 100% capital utilization rate. Users need to wait until either the protocol increases the maximum capacity of the pool or borrowers repay their borrowed assets
Potential security risks associated with the platformโs smart contracts: As with any smart contract-based platform, there is a security risk inherent to DeFi protocols
Borrowers
Liquidation risk: If the market moves unfavorably, users might face liquidation, which can occur swiftly and without prior notice
Point devaluation: Points earned from farming may depreciate, potentially diminishing the value of users' rewards compared to the cost of repayment
Token devaluation: For example, in the case of vSOL, during extreme market conditions, the vSOL/SOL ratio could decouple from its peg, resulting in a significant decline in value.
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