Our first major "failure" was a tough but invaluable lesson. It took a considerable effort to rebound, a time during which our enthusiasm and passion were truly tested. However, it was a simple message from a new Twitter follower – "I just joined waitlist" – that reignited our determination and reminded us of our mission.

Today, we find strength in our core - our Twitter community and a dedicated group on our Discord server. We're ready to start again, drawing wisdom from our experiences and listening intently to the voices that have supported us. In pursuit of this, we're excited to announce our partnership with "SHY," a platform for fully anonymous community engagement. This collaboration will give birth to a dedicated forum on SHY for Backlash, enabling everyone to share their thoughts and feedback freely and honestly, without the need for identity disclosure through wallet connections.

We invite your candid questions and feedback. Your comfort and openness in sharing with us are invaluable as we move forward. We are here, listening and learning.

Finally, our heartfelt thanks go out to everyone who has shown interest in our journey and stayed with us through these times. To you, we say with renewed energy and optimism: We are Back, stronger and more focused⚙️.

The unrevealed design of Backlash V2 maximizes users’ profit by utilizing numerous strategies with customizable options. Before our official launch, we wished to let everyone get familiar with the utilization of strategies and to catch the eyes of strategists wandering Twitter (which could be the primary purpose…). Starting from sharing strategies with the classic and basic combination of low borrow and high deposit interests, calculating Net APY, leveraging, and evaluating the risks.

Building Strategy

Calculating Net APY

1. Find collateral asset with the highest deposit interest rate for depositing as collateral

2. Find a borrow( Debt ) asset with the lowest borrowing interest

3. Calculate Net APY using the formula:

   Net APY = Deposit interest - ( Borrow interest x LTV )

Leverage

1. Calculate maximum leverage multiplier:

   Max leverage multiplier = LTV / 1 - LTV

2. Calculate maximum leveraged Net APY:

   Max leveraged Net APY = Max leverage multiplier x Net APY

3. Using two assets with found Net APY, maximize the APY using leveraging methods:

   Looping

   1. Borrow the maximum amount of tokens possible from your collateral corresponding to LTV.

   2. Re-deposit to the pool the amount of tokens you borrowed from step 1.

   3. Borrow the maximum amount of tokens possible against the re-deposit you made in step 2.

   4. Continue to alternate borrowing and re-depositing, decreasing each round due to the LTV. Until you reach the maximum leveraged multiplier/maximum leveraged Net APY.

   Flash Leverage

   1. Initiate (Max leverage multiplier x Initial deposit) worth of flash loan.

   2. With an initial deposit and (Max leverage multiplier x Initial deposit) from the flash loan in Step 1, deposit (Initial deposit + (Max leverage multiplier x Initial deposit)) to any random lending protocol.

   3. Using your total deposit (Initial deposit + Flash loan) from Step 2, a loan of is (Max leverage multiplier x Initial deposit) is extracted, which is your maximum borrowing amount (LTV) of the deposition.

   4. The flash loan in Step 1 is then closed using the borrowed amount from Step 3.

      Amount of Flash loan you have to open = Max leverage multiplier x Initial deposition

   For those who are familiar with flash loan leverage coding, flash leverage is recommended; however, although it might lead to higher gas costs, using looping does not affect your maximum leveraged Net APY, so both are possible.

   A transaction-building tool called “Furucombo” or a streamlined leverager “Contango” can be used when trying flash leverage methods for Aave and Compound.

   Anyone willing to know a detailed explanation of flash leveraging and Looping, refer to the link here.

Risk

Calculating max leveraged position liquidation price of each asset:

1. Deposit asset liquidation price = LTV x current Deposit asset price/LT

2. Borrow asset liquidation price = LT x Current borrow asset price / LTV

Risk management is much simpler by knowing the price of the asset being liquidated.

Exit position before the price of each borrowing and deposited asset reaches its liquidation price or when Net APY turns negative. ( The liquidation scenario we have analyzed is only based on the price change of the assets. )

Most of our strategies, which will be shared initially, will follow this format. If you wish to check out what kind of strategies will be shared, join our Backlash Discord and react to our announcement. Your dear role will be given to have access to the closed strategy channel. See you there!

About backlash

Backlash is a lending protocol designed for strategists, with a singular focus on enhancing net APY, offering straightforward choices and flexible options to make it easier than ever to make the most out of lending protocols scheduled for launch towards the end of this year or early next year. Stay tuned for more information.

Written by

• Glovin

Join our community

Twitter / Discord

Since the beginning of V1, and even before that, we've talked to our potential users. This process was important to me because my previous team didn't prioritize user feedback.

First, I want to acknowledge that we started by conducting user interviews and research to ensure that our product was good. However, we felt compelled to stick with V1, despite not having any new ideas, because we had already invested a significant amount of time and effort into it.

But then I realized that if we launched a product that wasn't well-thought-out, we wouldn't understand why it failed, which would mean wasting all the hard work our team had put in over the past few months.

Initially, our research focused on new and exciting features, but we soon shifted our focus to understanding why users would want to use our lending protocol. Unfortunately, user interviews failed to provide us with new insights or problems we had not already considered. This led us to focus more on the fundamentals, as we realized that all users, regardless of their identity or purpose, share a common goal: to make money.

In lending protocols, making money boils down to two things: earning high interest rates on deposits and paying low interest rates on loans. At a closer glance, it's all about rates that offer extra rewards or real returns, even if they're not the highest.

Lending protocol users can be divided into two groups: depositors and borrowers.

In this new version of Backlash, we empower users with choice. You can mix and match different options to create a lending and borrowing strategy tailored to your preferences, whether you prioritize extra token rewards or real returns. Ultimately, this flexibility helps you maximize your profits in the market.

We are finally proud to present the new version of Backlash to our users. Our previous product had a catchy one-liner, but it didn't clearly communicate its value proposition to users.

Stay tuned for the new version of Backlash, where straightforward choices and flexible options empower you to increase your net APY, making it easier than ever to make the most out of lending protocol.