Protocol Users

1.Revenue farmers

Advantages

• One token can be used for farming.

• Up to 2.5x leverage.

• Automatic share allocation.

• Automatic reinvestment.

• High debt ratio solvency.

• Adjustable positions.

Case

Alice has 100 HOOs and wants to get PUD on the PUD's HOO-USDT pool where she routinely gets 30% APY. the usual operation is that she converts half of the HOO value to USDT and then puts them into the pool to get 30% APY.

With Shouyi, she is able to borrow 150 HOOs from Shouyi Bank and pay interest on the borrowed funds. Then together with her own 100 HOOs, she has a total of 250 HOOs (2.5x leverage) available for HOO liquidity mining, resulting in 75% APY, more than twice her previous return.

No further deposits are required and she can continue mining as long as the value of her position does not fall below 187.5 HOO.

Alice is also required to pay interest on borrowed funds, depending on the HOO utilization rate.

2.Liquidity providers

Advantages

• One token can be used to provide liquidity.

• Up to 2.5x leverage.

• High debt ratio solvency.

• Adjustable positions.

3.HOO Lenders

Advantages

• Interest-bearing HOO (sHOO): This is a tradable and interest-bearing asset.

• earns interest.

Attention

• The borrower's interest rate, following the triple slope curve model.

• 10% of the borrower's interest is applied to the bank reserve (insurance fund).

4.Liquidators

Liquidation Reward

The liquidator receives 5% of the value of the liquidated position.

Case

Bob participates in PUD mining of HOO-USDT in the PUD pool by lending 150 HOOs through 2.5x leverage, along with 100 HOOs of his own. Bob's current position is valued at 250 HOO.

A week later, Bob's position value drops significantly, from 250 HOO to 175 HOO, and his debt ratio is 85% (150 HOO/175 HOO), which is already above the HOO-USDT closeout line of 80%, so the liquidator starts liquidation.

When liquidation occurs, the position value first pays off the debt (150 HOO) and then pays 5% of the position value of 175 HOO to the liquidator, so the liquidator earns 8.75 HOO.

The remaining 16.25 HOO (calculation 1: position value 175 - debt 150 - liquidation fee 8.75; calculation 2: own principal 100 - (position original value 250 - position current value 175) - liquidation fee 8.75) is returned to the farmer.