Defrost Finance
Super Vaults as Lending Pools
Margin/leverage trading will be powered by super vaults, with the latter acting as lending pools.

What is a Super Vault?

Super vaults are a yielding mechanism introduced, tested, audited, and popularized in the Defrost V1. It is an enhanced yielding contract with 'lose-nothing-and-earn-more' features. When you commit your tokens to Defrost, the super vault collects both fees and rewards from the original interoperated platform, where your contributed assets have been staked.
This means when depositing assets in super vaults, users will receive interest (from the LP tokens on the original platform like AAVE and Benqi) + mining rewards (also from the original platform).
For example, at the time of writing, on AAVE, the current AVAX supply APY is 4.6%, (with 2.4% from interest and 2.2% from mining rewards). By staking in the super vault, users will retain the yield from AAVE and their mining rewards (2.2% in the example) will be auto-compounded.

Super Vaults also works as lending pools

In super vaults, idle assets not yet utilized to power margin trading in lending pools are deposited in interoperated DeFi platforms โ€” aka projects that are cooperating with Defrost โ€” to continuously accrue interest and mining rewards.
In other words, the โ€˜lending poolsโ€™ powering margin trades will function as smart pools. If there are no margin traders or the pools are not fully utilized, the super vaults will put the idle assets in the vaults into other protocols, like AAVE, Benqi, etc, growing interest and compounding mining rewards.
When traders open their positions, an equivalent amount of assets will be withdrawn from other yielding positions and lent to the margin contract. Normally, the rewards accrued in the leverage trading contracts will be higher than those from other protocols, leading to higher rewards being passed into the super vaults.
There is no locking period in the Super Vaults. Liquidity providers may withdraw their funds at any time, provided they are not occupied by leverage traders when borrowing.
Copy link
What is a Super Vault?
Super Vaults also works as lending pools