One click to rule them all
Have you ever..
dreamed of a lending protocol that minimizes tons of steps for users to keep depositing and borrowing the same assets again and again like a mad farmer to reap their juicy reward at the end?
Then dear young ones,
You are at a right hand and a right place,
Starlay Finance solves this within one click with ‘Makai.’
Our proud genius big brain function. 🧠
In this article, we will cover :
- What’s Makai?
- How can Makai leverage your asset?
- Reverse Makai
- Risk of using Makai
- Makai Spreadsheet
Makai,
Makai is an automation tool. It allows you to save time from depositing and borrowing the same asset multiple times in just a single click.
With this power, you can maximize your gain on Starlay Finance up to 5x with specific assets.
But then, what exactly is the word ‘Makai’ ? Where did it come from?
Makai means “devil’s world” in Japanese, a term used especially in the Defi community to describe a highly volatile market like gambling. Contrary to the original Japanese meaning, however, Starlay’s Makai is a very good and useful functionality for users
Scare ?
I hope not.. as if the Makai is in the right hand it is a very useful one, but if it is in the wrong..
They might burn their hands easily. So why don’t we just sit down and study this article before jumping in, and of course, this is not financial advice.
Come students, let’s learn some basics.
How Makai leverage the asset
Take USDC as an example :
Let’s Makai 100 USDC which has LTV (Loan to Value) of 80% at the time of writing:
As you can see from the initial deposit of 100 USDC, we can leverage it to 336.1 which is 3.36x times with 5 loops. Makai can be customized 1.65x, 2.69x, or 3x. You name it.
*Loan to Value(LTV) means the maximum percentage can be borrowed from the capital you put in.
How about Makai 5x times with the same asset ?
It will take 27 loops to make 5x so the outcome will be around 498 USDC for the Deposit side, and 399 USDC for the withdrawal side.
Loop function up to 5x
I get it 5x times but why don’t ASTR or DOT have this option of 5x ? Is this a bug?
No, this is not a bug.
The reason behind this is because the LTV of assets you chose such as ASTR, and DOT do not reach 80% unlike Stablecoin (USDC, USDT, DAI, BUSD) which is a less volatile asset in crypto space.
How can we achieve this unique functionality?
We can say that we have the most dedicated developer team in the entire crypto space. We launched Starlay back in February, our development team has kept shipping unexpected functions to help users exploring the DeFi world since then included :
- Kagla Finance — Stable AMM on Astar Network
- Muuu Finance — Yield Optimizer on Astar Network
- Makai — Starlay’s Loop function
Latest update : Reverse Makai
No need to deleverage on the dashboard anymore.
After we launched Makai, many users told us they really wish the solution to exit the function within a single click like when entering the position. This is because in order to exit Makai position, they have to do it manually on Dashboard by slowly withdrawing an assets on the Deposit side then repay on the Borrow side while monitoring Health Factor which must be above 1 to prevent Liquidated event from happened.
We listened. With Reverse Makai, single click to exit Makai position, its purpose is to ease users at its finest.
Any Risk using Makai ?
Technically, there is no risk of using Makai because you deposit and borrow the same asset. There will be a small percentage of interest which increases overtime.
But of course, nothing in DeFi space is risk free. Please do not put your live saving or the money you cannot afford to lose in a single protocol.
Here is the crucial one :
On Starlay, there is APY which means interest. If it is on the deposit side, this means you gain interest from that asset you are lending.
You lend ETH, you get ETH.
On the opposite side for borrowing, this APY means the interest you have to pay which will increase every second and variable. The stable interest has not been implemented yet.
You borrow ETH, you pay ETH.
However, if the APY exceeds the Borrowing side causing the interest sky high to the moon, then you might get liquidated as the increasing interest will affect the Health Factor to go below 1.
Then… liquidated.
To solve this issue, Stable interest will be added in the near future.
Briefly, Stable interest will stay in the same % either the market is up or down. It is a useful tool for longterm borrowers to prevent the mentioned possibility above.
That’s why we built Makai spreadsheet for you to check first,
All you need to do is to duplicate the spreadsheet into a new one, and rewrite the yellow gaps with the current status of the token you would like to do Makai with.
**Please note that Makai is still in experimental state.
Summary
Though the function is still in experimental state, Makai is a very useful one for lending protocol to reduce time and effort for users looping with their own hand. Please be careful if you had HF (Health Factor) below 1, this could cause you to lose funds.
Starlay will keep shipping the killer function like Makai, and Reverse Makai, we will not stop developing even a single day both code, and community.
For more discussion we would encourage you to visit us on Discord to share pro-tip or even Degen-tip!
About Starlay 🚀
Starlay is a non-custodial lending protocol on Astar Network. Depositors can provide liquidity to earn interest as a stable passive income, while borrowers can leverage their assets without selling them out.
Astar Network aims to be the biggest hub for the multi-chain era by bridging with Ethereum, Cosmos, and others. With Starlay Finance, the Astar ecosystem will be a huge marketplace for storing all kinds of tokens on any kinds of chains.
