Molecular Protocol ($MOLE) is a modular synthetics & leverage farming protocol built for Arbitrum EVM-L2.
Molecular, the leverage farming & synthetics protocol has finally arrived on Arbitrum.
To grasp the entire workflow of the DeFi protocol, users first have to learn the two key roles of the ecosystem, “lenders” and “farmers”.
Most farming protocols rely on third-party financing such as a liquidity hook, which could induce liquidation and external risks. In sharp contrast, Molecular pools funds from retail investors through a selection of “vaults”. Retail investors, who are also known as “lenders” in this context, deposit single-assets like “USDC” and “BTC” into the vault to earn yield. In addition to earning the “real yield”, lenders also receive “moTokens”, an EIP-20 complaint token which represents the balances you supplied to the protocol, which is minted in a 1:1 ratio against the type of token asset you deposited (e.g. 1 USDC : 1 moUSDC) . Lenders can then choose to re-deposit the “moTokens” back into the protocol to earn $MOLE incentives.
Single-assets supplied by lenders through different vaults will be paired and leveraged to fund farmers’ LP positions.
“Farmers” on Molecular are the primary market-maker who are already supplying liquidities on DEXes such as Uniswap and LFJ. By depositing their LP tokens in one of the farming pools on Molecular, they can leverage their existing positions by up to 3x, the multiplier is actualized when harvesting their yield. Whenever a farmer deposits LP tokens, it sends a signal to the strategy contract, which tells the correlated vaults to pair and supply 2-3x of the farmer’s deposited LP value on DEX. The strategy contract periodically harvests farming rewards generated from the DEX, and distributes them back to lenders and farmers.
The distribution of the farming reward is split into 3 parts:
(1) For lenders, they receive a portion of the farming reward in the exact asset type that they initially deposited.
(2) For farmers, they receive a portion of the farming reward in $MOLE.
(3) The protocol charges a small percentage as fee for maintaining platform operation and revenue dividends to $MOLE holders.
The reason for this triad design is to align the reward sharing ratio with the real-time dynamics of the fund utilization, while incentivising the holders’ community for it to profit and flourish in the long-run.
Molecular, the leverage farming & synthetics protocol has finally arrived on Arbitrum.
To grasp the entire workflow of the DeFi protocol, users first have to learn the two key roles of the ecosystem, “lenders” and “farmers”.
Most farming protocols rely on third-party financing such as a liquidity hook, which could induce liquidation and external risks. In sharp contrast, Molecular pools funds from retail investors through a selection of “vaults”. Retail investors, who are also known as “lenders” in this context, deposit single-assets like “USDC” and “BTC” into the vault to earn yield. In addition to earning the “real yield”, lenders also receive “moTokens”, an EIP-20 complaint token which represents the balances you supplied to the protocol, which is minted in a 1:1 ratio against the type of token asset you deposited (e.g. 1 USDC : 1 moUSDC) . Lenders can then choose to re-deposit the “moTokens” back into the protocol to earn $MOLE incentives.
Single-assets supplied by lenders through different vaults will be paired and leveraged to fund farmers’ LP positions.
“Farmers” on Molecular are the primary market-maker who are already supplying liquidities on DEXes such as Uniswap and LFJ. By depositing their LP tokens in one of the farming pools on Molecular, they can leverage their existing positions by up to 3x, the multiplier is actualized when harvesting their yield. Whenever a farmer deposits LP tokens, it sends a signal to the strategy contract, which tells the correlated vaults to pair and supply 2-3x of the farmer’s deposited LP value on DEX. The strategy contract periodically harvests farming rewards generated from the DEX, and distributes them back to lenders and farmers.
The distribution of the farming reward is split into 3 parts:
(1) For lenders, they receive a portion of the farming reward in the exact asset type that they initially deposited.
(2) For farmers, they receive a portion of the farming reward in $MOLE.
(3) The protocol charges a small percentage as fee for maintaining platform operation and revenue dividends to $MOLE holders.
The reason for this triad design is to align the reward sharing ratio with the real-time dynamics of the fund utilization, while incentivising the holders’ community for it to profit and flourish in the long-run.
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Molecular Protocol ($MOLE) is a modular synthetics & leverage farming protocol built for Arbitrum EVM-L2.
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