The Margarita.finance platform

“Yield Booster” explained

“Yield Boosters” are our secret sauce. They're like staking on steroids. Imagine you have a piggy bank (that's your stablecoin deposit) that you give to a bartender (Margarita.finance) to make it fill up quicker . Based on what you ask for, the bartender promises to shake up a special margarita (your “Yield Booster”) that could give you more bang for your buck than just letting it sit there.

Here's how it works:

Choose your favorite crypto reference asset (Initially SOL) - that's like picking your base spirit.
Decide how long you want to give the stablecoin away (1 week to 3 months) - that's your aging period.
Tell us how spicy you want your yield (customizable APY%) - that's like choosing your flavor intensity.

Based on your choices, we calculate a "barrier" price. It is the level from which things will get shaky. Here's what can happen:

Best Case Scenario: If your chosen crypto's price finishes above the barrier when your time's up, you get all your investment back plus the full yield you were aiming for. It's like getting the perfect margarita with a fancy umbrella!
Worst Case Scenario: If your chosen crypto’s price finishes at or below the barrier you still earn that tasty yield but you will get your initial investment converted into your linked crypto asset (e.g. SOL) based on the initial price when you started to invest. It's like spilling a bit of your drink, but still enjoying the flavor.

Let's Break It Down with an Example

Say you want to mix up a SOL-based “Yield Booster”:

You put in 10,000 USDC
You're feeling bold, so you go for a 48% APY over 1 month
You are quoted a barrier at 50% of SOL's initial price

Now, two things could happen:

If SOL stays above the barrier, you get 10,400USDC back (your 10,000 USDC + 4% for the month).
If SOL drops by 50%, you'd get SOL now worth 5000 USDC delivered, plus that 4% yield (= 400 USDC).

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Last updated 7 months ago

“Yield Booster” explained

Here's how it works:

Choose your favorite crypto reference asset (Initially SOL) - that's like picking your base spirit.

Decide how long you want to give the stablecoin away (1 week to 3 months) - that's your aging period.

Tell us how spicy you want your yield (customizable APY%) - that's like choosing your flavor intensity.

Based on your choices, we calculate a "barrier" price. It is the level from which things will get shaky. Here's what can happen:

Best Case Scenario: If your chosen crypto's price finishes above the barrier when your time's up, you get all your investment back plus the full yield you were aiming for. It's like getting the perfect margarita with a fancy umbrella!

Worst Case Scenario: If your chosen crypto’s price finishes at or below the barrier you still earn that tasty yield but you will get your initial investment converted into your linked crypto asset (e.g. SOL) based on the initial price when you started to invest. It's like spilling a bit of your drink, but still enjoying the flavor.

Let's Break It Down with an Example

Say you want to mix up a SOL-based “Yield Booster”:

You put in 10,000 USDC

You're feeling bold, so you go for a 48% APY over 1 month

You are quoted a barrier at 50% of SOL's initial price

Now, two things could happen:

If SOL stays above the barrier, you get 10,400USDC back (your 10,000 USDC + 4% for the month).

If SOL drops by 50%, you'd get SOL now worth 5000 USDC delivered, plus that 4% yield (= 400 USDC).