Preview of a New Project | Rodeo, a Leveraged DeFi Mining Project: Could it Become the Leveraged Center of the Arbitrum Ecosystem?

Preview of a New Project: Rodeo, a DeFi Mining Project on Arbitrum

The DeFi mining industry is undergoing innovation, with some projects choosing to implement Univ3 CLMEngine, while others focusing on LSD assets. Cryptocurrency researcher 0xJeff wrote an article introducing a new leveraged DeFi mining project called Rodeo, including its vision, mechanism, token economics, and risks.

Rodeo’s vision is to become the leverage center of Arbitrium and maximize profits. Its mechanism is similar to DeFi loan protocols, with two main stakeholders being the Lender seeking passive income on unlocked assets and the Farmer borrowing for leveraged mining. Lenders can currently get a 74% annual return on USDC liquidity mining and utilize up to 10x leverage on collateral. Additionally, Rodeo allows users to deposit and borrow USDC to reduce directional risk. Rodeo also offers an index library for users to diversify their leverage strategies.

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In terms of token economics, RDO utilizes the xToken model. The utility of xRDO is to share protocol fees and unlock leverage. After pledging RDO, users receive xRDO, and holding it is necessary to obtain leverage. Incentives must be consistent with protocol development, so users need to invest some xRDO to unlock higher levels of leverage. Additionally, Rodeo has recently halved its supply, diluting its valuation from $24 million to $12 million.

There is currently more demand for LP’s passive income rate in the market. With the launch of Rodeo, Stella, and Steadefi, we may see capital flowing into these protocols to hedge the market and get high annualized returns. However, since this is leveraged LP mining, it also faces risks such as losses from price fluctuations, liquidation, smart contract risks, and negative APYs.

Reference: https://twitter.com/Defi0xJeff/status/1667944578207612934

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