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  • Benefits
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  1. DeFi Products
  2. Multiply

How it works

The Platform for Everything DeFi on Aptos

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Last updated 4 months ago

Suppose you strongly believe in APT and want to double the impact of your investment using the Multiply strategy. Here’s a simplified overview of how the process works:

  1. Initial Investment: You start by contributing their initial tokens to the strategy.

  2. Leveraging with Flash Loans: The platform uses a flash loan to temporarily borrow an equivalent amount of tokens, effectively doubling your initial investment.

  3. Increased Position: Combining your tokens with the borrowed tokens results in a larger investment position.

  4. Staking for Rewards: This total amount is then staked to earn rewards from a liquid staking protocol, such as Amnis Finance and Thala. The rewards come in the form of liquid staking tokens (LST), which represent the staked assets and the rewards earned from them.

  5. Managing Loans: The earned LST is then deposited to secure additional borrowing. The borrowed amount is used to repay the flash loan, completing the process and allowing you to maximize your staking rewards.

In essence, this strategy amplifies your initial investment by using temporary borrowing to increase the total amount staked, thus enhancing the potential rewards.

Explanation of Adding Liquidity Flow (Amis/Aries Route)

Benefits

  • Easy to Multiply in one step instead of combining complex strategies

  • Get better APY

  • Maximize your assets with leverage up to 9.5x

  • The more you interact with DeFi protocols via VibrantX Multiply, the more potential rewards you can earn (including points and rank on both VibrantX and other partnership platforms)

Platform Fees

Multiply users pay the standard rates on their borrowed tokens (the rate is clearly stated in the UI) and a 0.2% VibrantX protocol fee (from your base asset for Multiply).

Risks

By participating in this Multiply strategy, you are opening a position where you supply stAPT and borrow APT.

Lower-than-expected returns

The strategy assumes that the returns from APT staking will be higher than the cost of borrowing stAPT on Aries allowing users to multiply this exposure. This assumption might not hold in all circumstances and you should monitor the position to measure the profitability and desired risk.

Smart Contract Risk

Smart contract bugs, and fatal errors in any of the protocols being used.