Rodeo Finance - 10x Your Yield Farming

The easiest way to amplify gains is to tweak up the risk. You can 10x your yield farming yields by using this protocol.

Rodeo Finance is the protocol that we'll be talking about today. The protocol has immediate utility and by building on products coming out of the Dopex ecosystem, they are GMI.

There are two players in Rodeo: lenders and leverage farmers.

1️⃣ Lenders: Users that provide assets to farmers and earn a steady APY that is incentivized with $RDO.

2️⃣ Leverage Farmers: Users that borrow funds from Lenders in order to achieve as much as 10x leverage.

Protocol Goals

✅ Decentralized Leveraged DeFi

✅ Attractive Real Yield

✅ Built For Degens

✅ Automated and Sustainable

✅ Safe

Protocol Strengths

✅ Access to Undercollateralized Loans

✅ Streamlines Process of Levered Positions

✅ Eliminates Directional Risk via Single Asset Lend & Borrow Model

Leverage Choices

The protocol allows for levered positions of LPs and other desirable Arbitrum assets such as $plvGLP and $jUSDC. Rodeo utilizes ERC-4626 tokenized vaults which simplifies the process.

Leverage farming may seem complicated to the uninitiated, but it couldn't be more straightforward. The team put together a guide that'll get you up to speed.

Liquidations

If position health drops below 1, it is subject to liquidation so bad debt doesn’t harm the protocol. Liquidations are subject to a 5% fee.

Health Factor 0.99-0.95: Liquidations will sell off half of position.

Health Factor 0.95 or Less: Entire position is liquidated.

The protocol currently earns fees from liquidations and performance fees. The liquidation fee is split 50/50 between the liquidator and the protocol. As for performance, 10% of profit is given to the protocol when a position is closed.

ribAssets

When lending, users are given back Rodeo Interest Bearing assets. These are ERC-20s and each lending pool has its own respective ribAsset. A ribAsset liquidity pool is in the works.

Risks

1️⃣ Smart Contract Risk

2️⃣ Impermanent Loss

3️⃣ Liquidation Risk

Audit by Kalos

Tokenomics

The protocol uses a dual token model with $RDO being liquid and $xRDO being the real yield token. Public and private sale of $RDO will be distributed in a 70/30 fashion of $xRDO / $RDO. Like Camelot, liquidity incentives will be distributed 80/20 of $xRDO / $RDO.

Silos

Silos, like $xGRAIL plugins, are where users put their $xRDO to work. There are three choices to pick from:

1️⃣ Dividend Silo

2️⃣ Boost Silo

3️⃣ Leverage Launch Silo

For yield maxis, the Dividend silo will be for you. If you’re bullish on the success of Rodeo, this will probably be the most busy silo of the bunch.

The Boost silo will be the silo of choice for farming maxis. Reduction of performance fees will be significant when working with larger portfolio sizes.

Silos and vesting of $xRDO will operate very similarly to that of $xGRAIL. During the first 3-6 months, $xRDO that is reliquished to accelerate vesting will be redistributed to other stakers. After that, it’ll be a 50/50 split between burn and redistribution.

Public Sale

The public sale will be held June 30th on @CamelotDEX at 12 PM UTC / 8 AM EST for those looking to get into this token at release.

Public Sale Allocation: 12M (12% of Total Supply)

Hardcap: $1.2M @ $12M FDV ($0.10 / $RDO)

Big Picture

Leveraged yield farming is the core product from Rodeo, but a DAO, managed vaults, indexes, and a native flywheel are all in the works. Tokenomics are heavily influenced by Camelot which performed exceptionally well but with some small differences.

It’s not a perfect comparison, but the two possess near identical tokenomics. As value accrual ramps up people will realize the team has built a sustainable protocol. If successful, Rodeo, will only see improved $xRDO yields as we get fully in the bull market.

Conclusion

Rodeo is a protocol built for degens that simplifies the process of levering up positions. Tokenomics are intelligently designed and the protocol will effectively offer a suite that simplifies asset management on-chain. The future is looking bright for Rodeo.