Solana-based new DeFi star is launching a next-generation lending protocol that gives users access to leveraged cross-margin yield farming with downside protection
The public launch of Apricot Finance’s mainnet has been announced for this month. Built on Solana, Apricot is a next-generation protocol that is now offering three flagship products. Together, Apricot Lend, Apricot X-Farm, and Apricot Assist provide users with cross-margin leveraged yield farming and automatic protection against liquidation. Apricot provides a fully decentralized leveraged lending experience and the security of the smart contracts that oversee this lending will be verified by Halborn Security , a leading blockchain security firm
Each of the three tools that make up Apricot Finance contributes a different function to deliver a next-generation lending experience. Apricot is one of the first protocols to provide cross margin leverage yield farming and it does this while taking advantage of the Solana network to provide low fees and fast transactions.
Of the three products Apricot is launching, Apricot Lend establishes the basic borrowing system that provides the fundamental framework for the rest of the protocol As the name suggests, this is the tool that allows users to lend and borrow crypto assets. Users are able to deposit selected crypto assets to earn interest on Apricot Lend. You can also use the deposited assets as collateral to borrow stable coins. The protocol is cross margin which means that users can deposit any asset as collateral and will be able to borrow different crypto assets.
The second tool in the protocol is Apricot X-Farm (Cross Farm). This enables users to take on up to approximately 3x leverage through Apricot Lend to yield farm. X-Farm will start with supporting stablecoin pairs (USDC-USDT) or pegged asset pairs so that stakers are not exposed to impermanent loss.
Significantly, cross margin means that users can deposit any crypto asset to serve as collateral. There is no need to own any LP constituents or platform-required token, so users do not have to swap or borrow on other platforms, leading to greater capital efficiency and better user experience.
To complete the offering, Apricot is launching Apricot Assist to best protect users from downside risks. This provides protection from liquidation if an investor’s collateral falls in value. Assist is programmable, so everyone can adjust this feature based on their own risk-comfort level. Users can set Assist to sell or redeem their collateral assets if it reaches a Trigger Level, which assets exactly should be sold or redeemed, and how much of the asset should be sold or redeemed. This allows users to control their level of risk even without monitoring their portfolio 24/7. Using Assist effectively could decrease the chance of liquidations that occur on the protocol.
Apricot Finance raised $4 million in a recent financing round from leading blockchain investors. With the support from elite investors and the community, the company rolled out the testnet in September and received encouraging feedback from thousands of test users.
Meanwhile, Halborn Security has verified the security of Apricot’s smart contracts during an external audit. Until additional audits have been submitted, the contract will remain a closed source to protect the locked funds.