How Does it Work?

Smart Farming utilizes advanced yield automation technology to streamline complex strategies into a single process that enables users to achieve looped yield. This process can be accomplished manually at much higher cost, but by utilizing Metronome’s looping architecture, users can obtain the same result in a simplified, gas-sensitive process all through the Metronome dApp.

By depositing productive yield-bearing assets (supported vTokens), users can set their loop amount and generate synthetic assets that represent the same underlying assets as their collateral. This synth can be swapped for the original underlying asset on a supported DEX, such as Curve, and then converted into the yield bearing productive instrument (Vesper).

Example:

1. User deposits USDC into Vesper Finance USDC pool and receives vaUSDC tokens (yield bearing token), alternatively the user could deposit USDC directly into Smart Farming and skip step 2.

2. vaUSDC is deposited as collateral into Metronome’s Smart Farming.

3. User can then set comfortable loop multiplier amount.

4. msUSD is minted.

5. msUSD is automatically swapped on a DEX for USDC.

6. USDC is then deposited into Vesper Finance USDC pool which gives back vaUSDC.

7. The vaUSDC position is deposited as collateral to Metronome, making the total position safely overcollateralized.

Disclaimer: Looping deposits for yield increases the risk of liquidation. The more looping that is deployed, the higher the risk of liquidation.