Summary
We are happy to work in the SushiSwap community and introduce them to MahaLend; A decentralized money market that allows users to leverage their DeFi earnings with stablecoins.
We accept a wide range of DeFi tokens and we aim to accept SushiSwap’s LP tokens as collateral on our protocol while working closely with the community.
Website: https://mahalend.com
Documentation: https://docs.mahalend.com/
The benefits for SushiSwap holders are as follows:
- 30% revenue share from rental fees for the log.
- Increased liquidity for SushiSwap.
- MAHA premiums in addition to existing SUSHI premiums.
How does MahaLend work?
MahaLend is a lending protocol that works very similar to Aave V3 but with one key difference in that we accept LP tokens as collateral.
This means anyone looking to leverage their LP earnings can simply deposit their LP tokens with MahaLend as collateral, borrow stablecoins for them, and use them to potentially gain more exposure to the same LP.
This effectively allows users to increase their LP yields by a factor of 5-10x.
For stable LP farms (like USDT/USDC), we can allow users to borrow stablecoins and ETH up to a TVL of 90%, effectively allowing them to leverage up to 10x. For volatile LP farms (like ETH/USDC), we can allow users to borrow up to 80% TVL, effectively allowing them to gain up to 5x leverage.
The table below shows the type of earnings that users could earn with MahaLend.
| Farm yard | SushiSwap APR (to SUSHI) | Leverage offered | MahaLend Leveraged APR (in SUSHI + MAHA) |
|---|---|---|---|
| USDT/USDC 0.01% | 7.36% | 10x (stable) | 70.36% + MAHA APR |
| ETH/USDC 0.3% | 9.30% | 5x (volatile) | 46.5% + MAHA APR |
| ETH/ARB 0.3% | 13.9% | 5x (volatile) | 70%+ MAHA APR |
The trade-off is that when a user uses MahaLend, they have to pay borrowing fees for the number of stablecoins borrowed. This lending fee is typically less than the APR they earn, so in most cases leveraged users are net positive and earn a higher APR than before.
For most OGs familiar with AlphaHomora V2, MahaLend works similarly, but a key difference is that we use the Aave V3 codebase to build the lending and lending functions. This means we can control the risks within MahaLend much better and avoid an AlphaHomora/Iron Bank type situation where the underlying lending protocol collapses.
What are the risks involved?
As with any new innovative DeFi protocol, there are always some risks and I believe it is important to be open about them.
-
Smart Contract Risks: The MahaLend protocol, although a fork of Aave, has some modifications that allow borrowers and lenders to use their LP tokens as collateral while earning SUSHI rewards from the MasterChef contract.
Our code has been audited (with more audits to come) and we also have insurance and an active bug bounty program. However, we would never recommend anyone to pour their entire life savings into the log.
-
liquidation risks: LP tokens containing volatile assets could be liquidated if the underlying collateral value falls too low. In this case, users simply need to monitor their health factors from time to time to ensure their positions remain healthy and they are well above the liquidation threshold.
The more leverage you use, the higher your chance of getting liquidated (but of course, the higher your rewards).
For stablecoin-LP pairs, this risk is small, but sometimes when the stablecoin loses its peg (as was the case with USDC last March), the LP value can drop and liquidations can recur.
We maintain a full list of all the different risks associated with our documentation, and I think it’s important for any DAO-to-DAO collaboration to address these risks openly. Risk Framework – MahaLend
What’s in it for SushiSwap?
That’s the exciting part 
.
We would like to offer the sushi community 30% of the revenue from all rentals and liquidations paid to the sushi till.
In addition, MahaLend allows SushiSwap to benefit from:
- Increased liquidity for Sushiswap from people borrowing and using their earnings.
- More interest from APY farmers who are always looking for ways to increase their yields.
Additionally, we would like to offer some MAHA rewards to LPs that participate in the sushi pools on MahaLend. This means that LPs not only receive trading fees and sushi rewards, but also MAHA.
MAHA is the governance token for MahaDAO and this will also allow the sushi holders to participate in the MahaDAO ecosystem.
Specification: What we would like to ask from the sushi community
Regarding our requests, it is quite simple. We’d like to hear a few things from the community:
-
farm feedback; Know what types of sushi farms you want to use. Are you looking for stable farms like USDC/USDT or are you ok with slightly more volatile farms like ETH/USDC?
It would be great if you could let us know which farms you would like to see in this log. -
Product Feedback: Possibly understand other use cases better. It would be great if we could talk to some of you to learn more about how we can do this better. We created this Typeform for those of you who prefer a MahaLend Leverage Invitation
-
Cross Marketing Support: It would be great if we could grow this together. The team would be open to adding more pools and finding more ways to increase SushiSwap liquidity. Things like retweets and AMAs go a long way.
-
Sushi Emissions (later): Possibly some SUSHI rewards in the future <3: After the protocol has matured and we can successfully push some liquidity, we would like to issue some SUSHI issuance on MahaLend.
However, that won’t be the case for a few months, once we can show that the protocol can make a positive contribution to the SushiSwap community.
I hope the requests are fair and consistent with the ideologies and visions of the sushi community.
other points
We have great respect for the sushi community and want to support Jared’s vision of making SushiSwap profitable.
I hope that we can make a positive contribution to the sushi community with the rev-share opportunities and leverage utilities offered by MahaLend.
Opinion poll
Collaborate with the MahaLend team and share your revenue with the sushi community
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.