# Introduction Welcome to Eleven.Finance! ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-Mfx9UqWGDtszflyDRZX%2F-Mfx9fUIV9A6afNMKKB0%2FCopy%20of%20banner.jpg?alt=media\&token=06de98a9-bea9-4d5c-b96a-8bd94145866c) ## What is Eleven Finance? Eleven.Finance is a cross-chain auto-compounder, lending protocol and leveraged yield farming platform. The focus of our platform is to offer great APYs with our streamlined fee structure, dynamic approach to new strategies, being community driven all while driving value to our native ELE token. ## The beginning of Eleven Finance As the Decentralised Finance (DeFi) world grows, the search for the best yield grows with it. From the birth of the ‘Grandfather’ of yield optimisation, Yearn Finance, the space has seen a growing number of options for DeFi participants in search of the best returns. Alongside this DeFi has moved beyond the Ethereum blockchain, seeing exponential growth on Binance Smart Chain, Polygon, and many other chains. This has brought fast and cheap transactions to a growing number of platform users. In turn this has resulted in an explosion of DeFi protocols on these platform, that have brought with them countless opportunities for yield. It has now also helped bring Eleven Finance into the world. Our vaults make use of a variety of incentivised liquidity and single asset pools across these ecosystems allowing users to take advantage of our yield optimisation strategies and enjoy fantastic returns. As an extension of this our leveraged yield farming platform is a natural extension of our vault network. Allowing users to lend assets for returns or borrow funds to gain more exposure to potential farming returns. # The ELE token Token Contract Address (same on every chain): 0xacd7b3d9c10e97d0efa418903c0c7669e702e4c0 ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfQfGwGokwQhOIFUQqG%2FEleven%20Avatar.png?alt=media\&token=9d43e66a-ad99-49ba-818b-5d9e76bd0d52) The ELE token is a cross-chain deflationary token, native to the Eleven.Finance platform. Its utility comes from capturing value from the use of our platform. Essentially, owners of ELE are rewarded with fees earned by Eleven Finance. Every time a vault compounds, a portion of the profits is used to buy ELE from the open market. This creates a buy pressure on the token. The ELE accumulated from fees is later burned. To be exact, this burn happens on the 11th every month. Owners of ELE also have the ability to stake their ELE into our single ELE vault. This vault farms new ELE until all ELE is minted. The vault also earns a percentage of fees accrued by the platform in form of ELE. ELE was originally launched on the Binance Smart Chain, but was later bridged to other chains like Polygon, Avalanche, Fantom and others. This allowed us to create single vault on *every single chain* we support. # Token Structure ## **Total Supply** **Planned total ELE supply** — 11,000,000 tokens. **Real ELE total supply** — 8,117,630 tokens. Total supply has been **reduced** by 2,882,370 due to the pre-sale not reaching 100%, as a result these tokens have been burnt in two transactions: [Transaction 1](https://bscscan.com/tx/0xa7cbf37fc09d41a582988a663a80a96c938e89889d1fc81a8cdf6782308a2d2f), [Transaction 2](https://bscscan.com/tx/0xaf8d6ef8a9ba7c2dfe8b0783ade3cc08351de3148257ebd388090d40bcb2774f). ## Token Distribution ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FO26n1bcQbfZCv2bcB7Qf%2FToken%20dist%20chart.png?alt=media\&token=162fccc7-09b5-4d16-a9ad-e2fe5da572bb) ### **Presale (**20 % — 2,022,624 Tokens) The Eleven Finance presale was [launched](https://twitter.com/ElevenFinance/status/1366850637061742592?s=20) on March 2nd 2021, one day after the website's launch as a yield optimiser on the Binance Smart Chain. Tokens were sold through Bounce Finance at the price of 0.00025 BNB per ELE. That came out for about $0.06 per ELE at the time. #### How were the funds from presale used? 80% of BNB raised was invested and locked Eleven Finance's vaults in order to promote automatic purchases of ELE and thus the token price increasing. 20% of BNB raised was a development fee in order to develop a new DeFi platform within the Eleven Finance's ecosystem. Initial plans featured leveraged farming and loans using eleven vault tokens, which are all now part of Eleven Finance's ecosystem. ### **Farming (**67.5% —4,950,000 Tokens) ELE Farming includes ELE single staking pools across all chains, and all boosted pools which reward ELE (they can reward other tokens too). The purpose of letting people farm ELE is to have a good distribution of the token, as well as an incentive for people to join the vaults. #### Distribution 50% of all farming tokens were distributed in the first 4 months of the protocol's existence (from January to June 2021) at a rate of 0.711 ELE per block on the Binance Smart Chain. After that, a planned event we call "The Thirding" happened, which dropped ELE's emissions to **1/3** of the previous rate. The further 50% are being distributed in a 8 month period, from June until February 2022**.** During this phase, 0.237 ELE will be emitted for every block. After one year all ELE tokens will be distributed and ELE will turn into a profit-sharing token. ### Initial Liquidity (5% — 595,006 Tokens) Initial liquidity provided on PancakeSwapV1 used 80% of the BNB raised from the presale and 5% of all ELE tokens. This liquidity was staked and **locked** in the Eleven Vaults in order to promote buybacks. ### Development fee (7.5% —550,000 Tokens) 7.5% of all ELE tokens were given to the development team so they're able to develop and grow the Eleven Finance ecosystem. # Burn History ELE is being bought back from the market from fees earned by the protocol. They are then burned previously on a weekly, and now on a monthly basis. Here is the history and proof of all the burns. 🔥 ### ELE not sold in pre-sale Burn #1: [0xa7cbf37fc09d41a582988a663a80a96c938e89889d1fc81a8cdf6782308a2d2f](https://bscscan.com/tx/0xa7cbf37fc09d41a582988a663a80a96c938e89889d1fc81a8cdf6782308a2d2f) Burn #2: [0xaf8d6ef8a9ba7c2dfe8b0783ade3cc08351de3148257ebd388090d40bcb2774f](https://bscscan.com/tx/0xaf8d6ef8a9ba7c2dfe8b0783ade3cc08351de3148257ebd388090d40bcb2774f) ### Weekly burns Burn #1: [0x57f62131e5b7f34f05a865a2931e2c0d1b884a7cb95230dd8ef3b44cb7abac80](https://bscscan.com/tx/0x57f62131e5b7f34f05a865a2931e2c0d1b884a7cb95230dd8ef3b44cb7abac80) Burn #2: [0xa9445f3c0a28bb881f7640d6d83081e2fdff97ca388a27c3ed30ad078d426bc6](https://bscscan.com/tx/0xa9445f3c0a28bb881f7640d6d83081e2fdff97ca388a27c3ed30ad078d426bc6) Burn #3: [0x73f9c0229f38a35d57ca9a7e4a384fba32529d416b2f8b726f290df719746325](https://bscscan.com/tx/0x73f9c0229f38a35d57ca9a7e4a384fba32529d416b2f8b726f290df719746325) Burn #4: [0xc97b405bf3875b6c93b7fb151bdc98767ce506ec60ed164138518d32c0d2e5c0](https://bscscan.com/tx/0xc97b405bf3875b6c93b7fb151bdc98767ce506ec60ed164138518d32c0d2e5c0) Burn #5: [0x7d97cd0dd0407a811eac3f01882f971434addf522b56012c2a4c2058f3a7111a](https://bscscan.com/tx/0x7d97cd0dd0407a811eac3f01882f971434addf522b56012c2a4c2058f3a7111a) Burn #6: [0x65608b47d9fe743e2aaf0675cc6273cbd43de6bbdb7e4c0dd7c95271ca9754ad](https://bscscan.com/tx/0x65608b47d9fe743e2aaf0675cc6273cbd43de6bbdb7e4c0dd7c95271ca9754ad) Burn #7: [0xaf652f9b53532a9cda4d2b1dc1d53157ac2bc8da2bb648544da6a98b0e4ec70b](https://bscscan.com/tx/0xaf652f9b53532a9cda4d2b1dc1d53157ac2bc8da2bb648544da6a98b0e4ec70b) Burn #8: [0xeefb99cc5463f355b7cd2b99a49afd41a005bfcc78c21c7fe84f73214a34e5b5](https://bscscan.com/tx/0xeefb99cc5463f355b7cd2b99a49afd41a005bfcc78c21c7fe84f73214a34e5b5) Burn #9: [0x6992cab1d80b9c6b2701bcfdaf8898127f6e316de4d6a7cab4bcbaa04a0f90b8](https://bscscan.com/tx/0x6992cab1d80b9c6b2701bcfdaf8898127f6e316de4d6a7cab4bcbaa04a0f90b8) Burn #10: [0xd7d649fc90736dde9f5a1a9ce65563e0763b981c34782010e26e2b2582c1316a](https://bscscan.com/tx/0xd7d649fc90736dde9f5a1a9ce65563e0763b981c34782010e26e2b2582c1316a) ### Monthly burns Burn #1: [0xad733e9af8199f1f8642874514d8ff37eaeac98c67fb2c79a51ac01db18b831f](https://bscscan.com/tx/0xad733e9af8199f1f8642874514d8ff37eaeac98c67fb2c79a51ac01db18b831f) Burn #2: [0x965655a945836eba9afffdfa7bdc20cff3c51893fee249937bb86097cd8fc3fe](https://bscscan.com/tx/0x965655a945836eba9afffdfa7bdc20cff3c51893fee249937bb86097cd8fc3fe) # Security Our team at [Eleven Finance](https://eleven.finance/) take security very seriously. Admittedly, we have been suffered in the past, when our platform was unaudited, [however all funds from this exploit were recovered](https://elevenfinance.medium.com/eleven-finance-a-plan-for-the-return-of-funds-recovered-from-the-nerve-vault-exploit-39a006af20d3). Fortunately, we have came a long way since. We are more determined than ever to make sure user's funds are 100% secure. That's why Eleven Finance was audited **twice** by two different security teams. All of our vaults, our lending protocol and the leveraged yield farming were *all audited*. We fixed every risk found in the audit before deploying our lending & leveraged yield farming protocol to ensure maximum security. To further ensure that funds deposited in our vaults are secure, we only list trusted farms on our website. We also charge a 0.1% security [withdrawal fee](broken://pages/-MiSAXViNFeLc_9XndM1#withdrawal-fee) to **prevent** attackers from profiting from flash loans and draining the funds from our vaults. ## Audits ### **CertiK** {% embed url="" %} ### **Solidity Finance** {% embed url="" %} These are all smart contracts that were **fully audited**: * addstrat.sol‌ (CertiK) * bankConfig.sol‌ (CertiK) * borrow\.sol‌ (CertiK) * borrowconfig.sol‌ (CertiK) * eleUSD.sol‌ (CertiK) * interestmodel.sol‌ (CertiK) * liqstrat.sol (CertiK) * addStrat.sol (Solidity Finance) * bigfoot.sol (Solidity Finance) * bigfootConfig.sol (Solidity Finance) * liqStrat.sol (Solidity Finance) * oracle.sol (Solidity Finance)
## NRV vaults exploit On June 22nd 2021, a hacker was able to exploit unaudited NRV vaults on Eleven Finance using a flash loan attack. To understand how this exploit was executed in detail, we encourage you to read the [article](https://www.rekt.news/11-rekt/) made by [rekt.news](https://www.rekt.news/) explaining the exploit in detail. Thankfully, on 30th September 2021, Eleven Finance was able to retrieve **all** exploited funds back from the hacker. This was possible thanks to a great effort by the Peckshield and Binance team. A sincere thank you goes out to both teams. To read about our previously planned recovery plan of lost funds, click [here](https://elevenfinance.medium.com/eleven-finance-recovery-plan-a3869f8242d0). However note this plan was not executed as funds were returned to users in full. # Eleven Finance vaults explained ## Background Some DeFi protocols offer participants the opportunity to receive returns or yield for interacting with them. In the quest for yield, DeFi users often seek out a variety of platforms including [decentralised exchanges](https://www.businessinsider.in/cryptocurrency/news/what-is-dex-decentralised-exchanges-give-investors-more-control-and-more-profit/articleshow/86164969.cms) as sources of yield. These platforms often require users to deposit or 'stake' assets with them in the form of single assets or providing liquidity to the platform. [Providing liquidity](https://medium.com/cardwallet/providing-liquidity-what-does-it-mean-and-how-does-it-work-2a0ad0ea2a2d) to the platform is as simple as owning both tokens of any given pair, supplying these to the exchange, in return for an LP token, or put simply a record of you providing a given amount of liquidity to the ‘liquidity pool’. Single assets are often just purchased and deposited on the platform. Platforms provide yield in the form of sharing revenue and/or distributing their own token. For example the [PancakeSwap](https://pancakeswap.finance/) platform (on Binance Smart Chain) offers liquidity providers of certain pools further rewards, in the form of their native token $CAKE, in return for staking these LP tokens with their platform. Given the specific pool and amount of liquidity provided these rewards can be pretty attractive. But what if there was an even better way? ## Our vaults Enter Eleven Finance, a network of yield optimised vaults, automating much of this process to provide even *greater rewards* for DeFi participants and liquidity providers. By providing liquidity or single assets to numerous platforms across several blockchains, Eleven Finance users can then stake their LP tokens or single assets at [eleven.finance ](https://eleven.finance/)in our vaults. For a small vault fee of **0.1-0.2%**, *that is only charged on withdrawal of LP tokens or single assets and is fully redistributed between all users of this vault,* these vaults earn higher returns through strategies such as automated compounding of token rewards and platform revenue, to re-buy more LP tokens or single assets in the given pool and repeat this process. When users want, they can remove their LP tokens or single assets from out vaults. As mentioned, our vaults work on several chains and DeFi protocols, wherever providing liquidity or staking assets is incentivised through distributing their own tokens as rewards to these providers Eleven Finance aims to be. We have optimised vaults and tailored strategies that interact with these platforms (often newly released tokens) and will continue to seek community feedback as to the potential for development of new strategies moving forward. # How to deposit in a vault Our vaults require specific liquidity provider (LP) tokens or single assets from to be deposited into them in order for us to optimise yield for users. These need to be on the blockchain specific to the vault. ## Connecting your wallet On reaching the [Eleven.finance](https://eleven.finance) site for the first time you will be greeted with the below image. ![Wallet connection pop-up](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSUxAk0P3KQLcOSOyc%2FWallet%20connect.JPG?alt=media\&token=f5917893-3b29-4e89-b3cb-4097aa07e737) Connect the appropriate web3 wallet by selecting the button to your corresponding wallet provider. For a guide to connecting your Metamask wallet to various chains, check these links: [Avalanche](https://support.avax.network/en/articles/4626956-how-do-i-set-up-metamask-on-avalanche), [Binance Smart Chain](https://docs.binance.org/smart-chain/wallet/metamask.html), [Polygon](https://docs.matic.network/docs/develop/metamask/config-polygon-on-metamask/), [OKExChain](https://okexchain-docs.readthedocs.io/en/latest/developers/quick-start.html), [Fantom](https://wiki.rugdoc.io/docs/how-to-connect-metamask-with-the-fantom-network-ftm/). Other compatible wallet setup guides are also available through [this](https://docs.binance.org/wallets/bsc-wallets.html) link. Once your wallet is successfully connected to the [Eleven.finance](https://eleven.finance) you will see the a green circle and connected chain in the top left corner of the page, as well as an indicator for the wallet address that is connected. ![Wallet connection indicator](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSWwrsqdgUdKCkQHkN%2FWallet%20menu%20top%20left.JPG?alt=media\&token=dedba85c-bd5e-4b1c-b37d-b5810152d41f) To change between chains at any time simply select the box containing the green button, or if the vault required is on a chain your wallet is not currently connected to you will see a 'uses CHAIN' button that will prompt your wallet provider to switch chains. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FMjik1A6LrkiShgxmOHVn%2FChain%20list.png?alt=media\&token=caa62ed9-253b-4f55-ae1c-4534edf9f4da) ## Add asset or liquidity to the vault Finding a vault can be made easier by using the search and filter row at the top of the page. This allows you to sort vault offerings by network/chain, group, if you have tokens in your wallet (hide zero balances), if you have assets already deposited (deposited only), a search by name filter (magnifying glass) or the ability to order vaults by TVL or APY (drop down menu). Once you've found the vault you are looking for and either hold the asset (if this is a single asset vault) or the liquidity provider token (LP). In this example if we want to add to the WEX-BNB vault, we see it 'Uses WaultSwap'. So we need to create an LP on WaultSwap. We can access links to buy the tokens or add liquidity by expanding the vault row and following these (see image 2 below, on bottom right). For those vaults that 'Uses pancakeswap' a guide to completing this (as well as other great Pancakeswap documentation) can be found [here](https://docs.pancakeswap.finance/exchange/pancakeswap-pools). ![This vault 'Uses waultswap' and needs wLPs](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSai1Lhzpv0ij43hJu%2FWEXBNB%20vault.JPG?alt=media\&token=5d798a22-fa92-48a5-bd09-0254ee8acc40) Once done, and we've located the vault on [Eleven.finance](https://eleven.finance) we will see a row similar to that above. We can see we have a balance of 14.277 LP tokens in our wallet, and 0 deposited on [Eleven.finance](https://eleven.finance). We can also see the APY, APRD (daily APR) and TVL in that vault on Eleven. Please see here (LINK) for more details about APY and APR. Next we want to approve Eleven.finance to spend our wLP tokens in order to stake them in the vault, if we select the row, it expands giving us more detail. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSbsD2WrY5MrcF_9nf%2FWEXBNB%20vault%20dropdown%20expand.JPG?alt=media\&token=7dd23d80-ff5e-4a85-8fb1-7f1970008700) If we select the "Approve" button and confirm the transaction the button will then become the "Deposit". ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfScDaz0N2nTvJI2Exv%2FWEXBNB%20vault%20dropdown%20expand%20approve%20completed.JPG?alt=media\&token=864ff920-4e75-403c-8119-3ad624eceed2) Selecting the 'Deposit' button we are greeted with a pop-up where we chose or enter the amount of wLP tokens we would like to deposit and click "Deposit" or if we want to deposit all our tokens you can select "Max", in this example we will deposit all. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfScaqGNVgQV8xVglEL%2FDeposit%20to%20vault%20popup.JPG?alt=media\&token=8c487a3e-c2f7-4774-8794-c2b70aefbdd7) On confirming and completing this transaction our view will change to the following: ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSd0UK84vfWKwqUp8b%2FWEXBNB%20vault%20dropdown%20expand%20deposited.JPG?alt=media\&token=0044d031-6c54-438a-8b48-5bbfabe89cd3) This now shows we have deposited our wLPs in the vault. We can see that we have deposited 14.277 WEX-BNB wLP tokens into the vault. You will earn compounding wLP rewards. As compounds or harvests occur you will see the 'Deposited' number increase, reflecting your growing wLP position. Please note the dollar value below this is an estimate of the LP value in USD. This *value* can fluctuate dependant on the value of the underlying tokens, however the *number* of LP tokens will always increase. # Boosted Rewards (Staking) ## What are boosted rewards? A key part of distributing ELE tokens to the Eleven Finance community is the inclusion of farming rewards for those using our platform. These rewards will run for a year from launch aiming to [distribute 4,950,000 ELE](broken://pages/-MiRixBuwl6H1U99V16W#token-distribution) over this time. Vault users can complete an additional step to 'boost' rewards for specific vaults. These vaults are identified by the 'Boosted' tag. This will allow users to not only earn great yield in vaults but also earn some ELE tokens for free. ![Boosted Tag](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FvE4qLSzZoozoLlZnuJzL%2FBoosted%20tag.png?alt=media\&token=4da589fe-a660-4746-979f-520d9cfd7648) Weighting for the amount of $ELE rewards allocated to each 'Boosted' vault will vary. ELE LP's and ELE staking will be most incentivised. The 'Boosted' incentives will keep rotating depending on promotions. The goal is to offer very attractive vaults to attract new users and TVL while still maintaining a healthy ecosystem for all ELE holders. Once the Boosted promotion is over, your asset will keep compounding and earning the full APY% shown in the vault. You can leave the boosted section if you want, but it's not necessary. PS: if you see a "Boosted" Vault with same APY before and after its because the base APY% is so high that the extra ELE is hard to notice. But it's there! At present one third of all newly emitted ELE is sent to be burnt, further reducing inflationary pressure and the maximum supply of the ELE token. ## How to stake my LPs / tokens for ELE rewards? Once you deposited to a vault, and the vault you are in is boosted, you can choose to stake your LPs or tokens to earn more rewards in form of ELE on top of your rewards you would normally get if the vault was not boosted (or you did not stake). First, click the "Approve" button at the bottom left of your vault, and confirm the transaction in you wallet. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2F1qWuBqk7dqCINyz240lH%2FBoost%20image%201.png?alt=media\&token=4345ab00-7419-4f48-b93d-d02673a0b01c) Once the transaction is confirmed on the blockchain, the "Approve" button will turn into a "Stake" button. Once this happens, simply click "Stake". ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FJmUI2DegH0LD3Yl314cw%2FBoost%20image%202.png?alt=media\&token=d4a07e2d-82bb-4d5d-b9b4-7daaa989762c) When you click on the "Stake" button, a pop up will show up asking you the amount you want to stake. As there is no disadvantage besides making one more transaction to staking, we encourage people to simply stake the whole amount. After choosing how much you want to stake simply click "Stake", and confirm the transaction in your wallet. Your rewards will start showing up as soon as the transaction is confirmed. And that is it! You are now earning rewards as you normally would plus the boosted rewards. # Benefits of compounding The majority of our vaults work on a compounding strategy. This sees vault rewards harvested and reinvested into the underlying asset. In the WEX-BNB example used [previously](broken://pages/-MiSMn1kG4Z19NUw3h4V), we staked WEX-BNB wLP's from WaultSwap. When these LP tokens are staked on WaultSwap they earn $WEX rewards. Our Vaults take this $WEX reward, sell it and use the earnings to purchase more BNB and add this to the total number of WEX-BNB wLP's from WaultSwap in the vault. This compounding happens as the Vault contract is harvested, and more details of how this is called will be outlined further in the documentation. The important thing to note is that with the compounding of rewards into the underlying asset (the WEX-BNB wLP's from WaultSwap) we can see exponential growth. This is reflected as Annual Percentage Yield or APY (more details about APY can be found [here](https://www.investopedia.com/terms/a/apy.asp#:~:text=The%20annual%20percentage%20yield%20\(APY,the%20effect%20of%20compounding%20interest.)). APR or Annual Percentage Rate on the other hand is the return you would expect, if the compounding outlined above didn't occur. This is linear growth and more details can be found [here](https://www.investopedia.com/terms/a/apr.asp). ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FsC3OgSX3RRvlXpnzT1F3%2FCompounding.png?alt=media\&token=6209e674-6ac8-4394-a267-6e32e26e4317) The vaults of Eleven Finance utilise the power of compounding returns as one of our strategies to provide optimal yields to the users of our platform. # The Harvest Function and Fees You may have noticed that part of the inherent value of the ELE token is the value that is given to ELE stakers when a compounding or harvest event occurs. Each of our vault contracts has another contract or strategy interacting with it. As users add LP tokens to a particular vault, rewards begin to accrue. If we use the 3 CRV LP on Polygon as an example, the 3POOL LP's that we staked in the Eleven Finance vault are automatically added to all others and deposited to farm on [Curve on Polygon](https://polygon.curve.fi/). Here they are gaining $CRV rewards. When the harvest function is called, the contract will take all the pending $CRV rewards, sell them, buy more 3POOL tokens adding these to the Eleven Finance vault. These newly gained LP's are shared proportionally to everyone in the pool - except for a 3.5% harvesting or 'Performance fee' on these rewards. Additionally there is a 0.1% Withdrawal fee on the amount withdrawn. A breakdown of these fees is seen on the right of screen when the vault dropdown is expanded: ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfSgrJgO8AQNOMlSN_V%2FFee%20breakdown%203crv.JPG?alt=media\&token=370732e2-aec6-470e-a4bc-efaa4d8f3479) Additionally by hovering over the 'question mark' next to Performance fee we can see a breakdown of how this is spent. ![Breakdown of Performance fee](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfQfBrv0WmH1ohVUPGZ%2F-MfShAC7q8IVZsBG8bA2%2FFee%20breakdown%203crv%20expanded.JPG?alt=media\&token=b4e485af-dfdc-46ff-bfb1-9ecb827deb08) ELE Buybacks are where ELE is bought back from the open market and burnt, removed from circulation entirely. ELE pool dividends are where ELE is bought back from the open market, and re-distributed to those staking in the ELE vaults on [Eleven.finance](https://eleven.finance). These dividend pool rewards only occur on BSC, as we decided it is better to use more funds for ELE Buybacks instead. The Controller fee are funds sent to enable harvesting/compounding of vaults and strategies. The Platform fee is retained by the Eleven Finance team to continue to support ongoing protocol expansion and development. So you might be asking yourself, what triggers a harvest and what incentive is there to call this and keep the compounding happening. Previously this was user driven, however with the launch of PancakeSwap V2 pools and the need to re-launch our vault contracts we have taken the opportunity to fully automate this process. A bot will now optimise compounding calls, by assessing rewards accrued and calling as a result. This will see high volume, high reward vaults called with more frequency. Furthermore with vaults on Polygon, due to extremely cheap transaction fees, vaults are compounded approximately between every 15 and 30 minutes. ## Various fees for different chains and vaults ### Deposit Fee Eleven Finance charges no deposit fees. If you see a deposit fee in a vault, it's because the underlying project takes it. ### Withdrawal Fee Eleven Finance charges a 0.1% withdrawal fees on vaults which provide liquidity, and a 0.2% withdrawal fee for vaults for single staking. This is a security measure to prevent making flash loans profitable. When someone withdraws from a vault, this fee is fully redistributed between all people in the vault they withdrew from. ### Performance Fee The performance fee varies from chain to chain and from vault to vault. On chains where the gas fees are higher (such as Avalanche), the performance fee has to be higher in order to make compounding profitable. The performance fee is also different for lending vaults, where we charge no fees, and for vaults we partnered up with other projects (for example WaultSwap on Binance Smart Chain), where we used a part of the performance fee to buyback their token in exchange for a promotion. # How to withdraw from a vault ## Fee Unstaking from Eleven Finance vaults is a relatively straight forward process. It is important to note that when you unstake from a vault, you will **incur a fee on the amount you are unstaking**. If you are unstaking LP's it's a 0.1% fee, or if it's a single asset it's 0.2% fee (excluding the lending vaults, those have no fees)**.** This fee will be deducted from your position as you remove it. You can confirm the exact withdrawal fee by expanding the vault, and checking the fee structure on the right side. ## Withdrawal To find the vault you want to withdraw from, scroll down in the Vault page, or use the search function. Or you can just select 'Deposited only' to find all the vaults you are currently in. If you staked your funds in a boosted vault, you will firstly need to unstake them. Simply click on "Unstake" and confirm the transaction. If your vault is not boosted, you can move on to the next step. Now, select the 'Withdraw' button, confirm the amount in the popup and then confirm the transaction.On completion, you will see the corresponding LP tokens in the 'Balance' column on the left side of the vault. If you wish, you can now take these LP tokens back to wherever you created them, remove liquidity and receive the underlying individual tokens. # Contract Addresses ## Deployers ### Binance Smart Chain: * Eleven Finance - Deployer: [0x6b3c201575ace5ed6b67df5c91e40b98c0d2be36](https://bscscan.com/address/0x6b3c201575ace5ed6b67df5c91e40b98c0d2be36) * Eleven Finance - Deployer 1: [0x2981bb8f2883a462c5c413de604c3b3e36884800](https://bscscan.com/address/0x2981bb8f2883a462c5c413de604c3b3e36884800) ### Polygon, Avalanche, Fantom, OKEx: * Eleven Finance - Deployer 1: [0x2981bb8f2883a462c5c413de604c3b3e36884800](https://polygonscan.com/address/0x2981bb8f2883a462c5c413de604c3b3e36884800) ## Token address ELE (same across all chains): [0xacd7b3d9c10e97d0efa418903c0c7669e702e4c0](https://bscscan.com/token/0xacd7b3d9c10e97d0efa418903c0c7669e702e4c0) ## Masterchefs Binance Smart Chain: [0x1ac6C0B955B6D7ACb61c9Bdf3EE98E0689e07B8A](https://bscscan.com/address/0x1ac6c0b955b6d7acb61c9bdf3ee98e0689e07b8a) Polygon (MATIC): [0xD109D9d6f258D48899D7D16549B89122B0536729 ](https://polygonscan.com/address/0xd109d9d6f258d48899d7d16549b89122b0536729) Fantom: [0x8eDCe6D0E0687DA9C07B36591781fB6641A53a12](https://ftmscan.com/address/0x8edce6d0e0687da9c07b36591781fb6641a53a12) Avalanche C-Chain: [0x52B8bb74Cde6602AB9e6540e25E0A97f5B3226D7 ](https://avascan.info/blockchain/c/address/0x52B8bb74Cde6602AB9e6540e25E0A97f5B3226D7) OKEx: [0x2e58A485759eA4B772c93485d603465dC1cAE4ac ](https://www.oklink.com/okexchain/address/0x2e58A485759eA4B772c93485d603465dC1cAE4ac) ## ELE banks ### Polygon: * eleUSDC: [0x4F22Aaf124853FdaEd264746E9D7B21B2df86b90](https://polygonscan.com/address/0x4f22aaf124853fdaed264746e9d7b21b2df86b90) * unUSDC (unused USDC): [0xcf4fb717379674819c11089d1cd8df42bf0be8e5](https://polygonscan.com/token/0xcf4fb717379674819c11089d1cd8df42bf0be8e5) * eleWBTC: [0x62b728ced61313f17c8b784740aa0fc20a8cffe7](https://polygonscan.com/token/0x62b728ced61313f17c8b784740aa0fc20a8cffe7) * unWBTC (unused WBTC): [0x5ed521d568ac1ac7522eea64decc7d1c0174b28e](#deployers) * eleWETH: [0x57ebd9db19a411cbf538aae2410f21075c1a4193](https://polygonscan.com/token/0x57ebd9db19a411cbf538aae2410f21075c1a4193) * unWETH (unused WETH): [0xe7e36edde5b93c2d041861d0c246740ebe8de4b6](https://polygonscan.com/token/0xe7e36edde5b93c2d041861d0c246740ebe8de4b6) * eleWMATIC: [0x72f1EF037C06F8bc5c7B4d7Fe052Bb718f777Bf0](https://polygonscan.com/token/0x72f1EF037C06F8bc5c7B4d7Fe052Bb718f777Bf0) * unWMATIC (unused WMATIC): [0xa6969050406bd6660c72b189a5f6c97f2a6eb64e](https://polygonscan.com/token/0xa6969050406bd6660c72b189a5f6c97f2a6eb64e) ### Fantom: * eleUSDC: [0x8a7b7678f4bf86146c6b8565884ff158a47043ef](https://ftmscan.com/token/0x8a7b7678f4bf86146c6b8565884ff158a47043ef) * unUSDC (unused USDC): [0x0886becf1e8368a45fcaf206684c2dbf74531814](https://ftmscan.com/token/0x0886becf1e8368a45fcaf206684c2dbf74531814) * eleWBTC: [0x698806a21d6f0d796a050ecaa584ff76094976cf](https://ftmscan.com/token/0x698806a21d6f0d796a050ecaa584ff76094976cf) * unWBTC (unused WBTC): [0x20c0939bc7a4b83302f8d09372b0d43922f099cf](https://ftmscan.com/token/0x20c0939bc7a4b83302f8d09372b0d43922f099cf) * eleWETH: [0x8851c05e04970f32dd016c49dfa870bb1a0e61a6](https://ftmscan.com/token/0x8851c05e04970f32dd016c49dfa870bb1a0e61a6) * unETH (unused WETH): [0x98bc3b565d585e68458f6c4650ccfd4e15b17029](https://ftmscan.com/token/0x98bc3b565d585e68458f6c4650ccfd4e15b17029) * eleWFTM: [0xf172540b75e06af79a54b0cace3413e629dc4b1b](https://ftmscan.com/token/0xf172540b75e06af79a54b0cace3413e629dc4b1b) * unWFTM (unused WFTM): [0x3d77f869777bef0b6ea2c316efb96ee7db8deabe](https://ftmscan.com/token/0x3d77f869777bef0b6ea2c316efb96ee7db8deabe) ### Avalanche C-Chain: * eleUSDT.e: [0x7dFac73e913D39fc0cd30c0211adBaB8d6eF82e2](https://avascan.info/blockchain/c/token/0x7dFac73e913D39fc0cd30c0211adBaB8d6eF82e2) * unused USDT.E: [0x6914c779e5F302F9CC3b62CE7126B6917789b4F8](#masterchefs) * eleWAVAX: [0xe03BCB67C4d0087f95185af107625Dc8a39CB742](https://avascan.info/blockchain/c/token/0xe03BCB67C4d0087f95185af107625Dc8a39CB742) * unused WAVAX: [0x0CcD990DFb7A9f3DAc2c18AcCA329bcee0e8574E](https://avascan.info/blockchain/c/token/0x0CcD990DFb7A9f3DAc2c18AcCA329bcee0e8574E) * eleWBTC: [0xEf8a093f2d91c2749DF3587CE1A8d1952FcCE5E4](https://avascan.info/blockchain/c/token/0xEf8a093f2d91c2749DF3587CE1A8d1952FcCE5E4) * unused WBTC.e: [0xdddF183017cFd31bfeeC4d37702B3B4F44834366 ](https://avascan.info/blockchain/c/token/0xdddF183017cFd31bfeeC4d37702B3B4F44834366) * eleWETH: [0xc2f5d633BAfc3E5d29C1aa7AF6d361A59F0431Ef](https://avascan.info/blockchain/c/token/0xc2f5d633BAfc3E5d29C1aa7AF6d361A59F0431Ef) * unused WETH.e: [0x3D74b6DdA581C9641A66782b1518B9966d11db00](https://avascan.info/blockchain/c/token/0x3D74b6DdA581C9641A66782b1518B9966d11db00) # Introduction ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-Mfx8j9gqcTJsjuGv29W%2F-Mfx9Cd_t8CwE0pRcBbn%2F3.jpg?alt=media\&token=33bf3be6-16bb-4186-8f20-e55f16a4650b) Eleven Finance has been developing an ecosystem for some time now and we feel we are well on our way to delivering on our mission. The mission of building a fast moving, community driven, high APY vault ecosystem with a wide selection of supported assets across a variety of blockchains. However, this is not enough for us.‌ Our lending/leveraged yield farming platform is a natural next step for Eleven Finance, utilising our network of our existing vaults. This will allow for users to harness borrowing (known as leverage) and gain exposure to the upside of even larger yields. Additionally, lenders will be able to provide assets to the platform to be used for borrowing with attractive interest rates and other farming rewards. # A brief example Alice holds USDC and wants to ‘put it to work’ for her in order to maximise yield and is aware of the risks that come with this. Using our the Eleven Finance's leveraged yield farming platform, the process is quite simple. Alice comes to [Eleven.finance](https://eleven.finance). She decides she would like to ‘leverage up’ her exposure to the USDC/BTC liquidity pool pair from WaultSwap, and farm with increased leverage, so she goes to the "Leveraged Yield Farming" tab on the left side of the website. Using the platform, she firstly selects if she wants to borrow USDC, or BTC. This is very important. If Alice expects BTC to go up in relation to the other token (in this case, USDC), and wants to be leveraged that way, she will borrow USDC. If she believes that BTC will go down in price relation to the other token, she will borrow BTC instead. Alice chose to borrow USDC as she believes it will go up in price in relation to USDC. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FOTquAp5bJhRtrchoDtam%2FLYF%20example%201.png?alt=media\&token=658111d1-46f2-4a84-a079-82b5f3439ddd) She then selects this pair by clicking "Open Position" and chooses her desired amount of leverage (and therefore risk) from the dashboard page. This tells the contract to borrow the additional funds she needs in addition to her collateral (in her case it’s USDC) from the eleUSD bank. Here she deposits her USDC as collateral and the contracts take care of the additional borrowing position (as USDC is borrowed from the eleUSD Bank). ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MfQcuMiisMMS-WcAHQC%2Fuploads%2FBV1juLMU3FXVzvtrG09u%2FLYF%20example%202.png?alt=media\&token=572c5c2d-cc53-47f2-8beb-19f0298153df) Alice chose to deposit 1000 USDC with 3.5 leverage. When she entered the amount of funds she chose to deposit, a small table shows up with information about her deposited collateral, the amount of money she is going to borrow, the amount of LPs she is going to be farming with, and the fees and slippage being paid when she opens the position. (photo of the tldr table when opening a 1000USDC position on WBTC/USDC) When Alice acknowledges this information and opens the position, Eleven Finance's leveraged yield farming contract converts all this USDC into the amount of USDC/BTC LPs shown in the table. It does this using 50% of the USDC to purchase BTC, then adding liquidity to WaultSwap for this pair, then depositing these LP tokens into the relevant Eleven Finance vault, in this case the USDC/BTC wLP. From here, there is no more action required by Alice. She can monitor her position and see her LP rewards grow through autocompounding (rewards being sold and additional LP tokens being automatically bought and re-staked). All these compounded rewards result in additional value of Alice’s LPs. As this value grows, Alice’s lending and therefore liquidation risk can be reduced. So to summarise this example, let's say the USDC/BTC wLP vault is rewarding at rates of 36.05% APY. If Alice opens a position with 3.5x leverage, the APY for her position would be \~ 128.66% APY. At any time Alice can withdraw from the system, where she would pay any relevant fees/interest, pay back her borrowed USDC and receive the remainder of the USDC tokens (which will be inclusive of compounded LP rewards, minus 0.1% vault withdrawal fee). # As a lender One of the key features of decentralised finance (defi is the ability for users to truly ‘be their own bank’. For many this means complete control of their own funds and the ability to use these as they see fit. Part of what this self custody allows is the ability to lend assets to protocols to be utilised by other defi users. On Binance Smart Chain and Polygon, Eleven Finance's Leveraged Yield Farming, incentivises users to lend assets, that can then be used for leveraged yield farming. At the core of the this platform are a series of eleBANK's, users can stake their assets inside the corresponding eleBANK contract to receive an interest bearing eleBANK token in return. This interest bearing asset will be named according to the asset deposited or lent. This could be eleUSD for users lending stable assets (USDC, USDT or DAI), eleBTC (for users despositng BTC on Polygon), eleMATIC (for users depositing MATIC on Polygon) and eleETH (for users depositing ETH on Polygon). This eleBANK asset pegged at 1:1 with the corrosponding asset at the time a lender lends it to the eleBANK. This eleBANK asset earns interest that is paid by those that borrower the underlying from the bank as they enter leveraged positions to optimise yield farming returns. For more details on the calculation of interest rates across the platform and how these are shared to lenders see here. # Staking in eleBANK Staking assets that will be utilised by the Eleven Finance's Leveraged Yield Farming platform allows lenders to earn interest on these. The process to do so is relatively straight forward: Go to [Eleven.finance](https://eleven.finance) and connect your compatible Web3 Wallet (using the pop-up prompt or button in top left sidebar). The banks utilise our vaults to maximise yield opportunity and are visible under the 'Vaults' section in the left sidebar. Use the dropdown filters to select the 'Ele' group and you will see the various 'Ele' banks. For this example say we wish to deposit in the eleUSD bank on the Polygon network. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfVlgjdjbm7euZ_8pmD%2FeleUSD%20vault.JPG?alt=media\&token=a66758ea-4f78-4385-b5bd-680e39f983b6) Once we have found the Bank Vault as above we can see that we have a balance of tokens able to deposit. This vault accepts stable coins including USDT, DAI and USDC. So our balance will be a sum of all of these in our wallet. APY and APRD are estimated returns for those lending into this vault. This can be made up of a combination of rate paid by borrowers to lenders, interest earnt by 'dormant capital' (funds not being lent on the leveraged yield farming platform but being utilised on other defi protocols rather than lying 'dormant') or extra ELE farming rewards. Expanding this vault row by selecting it, will display similar to any other vault on the platform, with an approval/deposit button to enter the vault/bank. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfVnhnZzEaX_H7kgrWJ%2FeleUSD%20vault%20expanded.JPG?alt=media\&token=5878167c-e357-4ddf-b50b-7b3083d2ded8) On selecting deposit the user will see the popup below, allowing them to select any amount or combination of any of the 3 types of stable coins from their wallet into the eleUSD bank. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfVob5n_G3bh8nMCaX5%2FDeposit%20to%20eleUSD%20bank.JPG?alt=media\&token=c1462eb9-fd33-4a76-8abc-14d0f95284ea) Once deposited, a user will be able to withdraw at any time, by selecting the 'Withdraw' button. And subject to fees as per the box in the expanded vault section. In the case of eleUSD lenders will withdraw assets in the form of Curve 3pool tokens. These are USD pegged assets through and can be exchanged back to USDC, USDT or DAI through this site, with very minimal slippage and fees. # As a leveraged yield farmer (lender) Leveraged yield farming with Eleven Finance allows a user to enter an existing Eleven Finance vault position but harness the power of leverage. That is a user can borrow funds from the eleBANK to allow them to increase exposure to compounding farming rewards (note this also increases risk exposure). # Opening a leveraged yield farm position To do this users select ‘Leveraged Yield Farming’ from the Eleven.Finance sidebar. Then will be greeted with a list of pools available to leveraged farm. To enter any of these pools select the relevant network (the site will prompt a network change if you click the ‘available on network’ button) otherwise if you are already here you will see an “Open Position” button. Selecting this, with your leverage multiplier set as you wish, will allow you to open a leveraged position by depositing collateral. Collateral type will be dependant on the vault, and allow for the position to be opened with any amount of either of the assets in the pair. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfXJdT1eLDVACjbRihq%2FEthusdc%20lev%20vault%20plain.JPG?alt=media\&token=41e7711c-89db-4efd-8efc-cfb3d7795df6) Using the ETH-USDC WLP vault on Polygon as an example, we can see the APY and APY values for the vault, as well as a slider for desired leverage. Selecting open position greets us with the popup below: ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfXLdD38R7kK4ook-I1%2FOpen%20lev%20position%20popup.JPG?alt=media\&token=ad1bf07c-bc92-45fd-a3e2-e7ddf1b0bd97) Here we can add any amount of ETH or USDC or combination of both, as well as confirming the amount of leverage. Any tokens needed approval will open an approve token pop up: ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfXNWzPnLiwQtA_9TeF%2FApprove%20USDC.JPG?alt=media\&token=b306650c-e5df-4ffd-be3a-0f936c921309) Once tokens are approved, selecting 'Open Position' and confirming the transaction will finalise this position. ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfXOOZqwiyWimj2nGfR%2FUSDCETH%20Open%20position%20row.JPG?alt=media\&token=d281dad3-de80-4363-b13a-2337070ead1f) Once this is completed your position will be visible lower down on the page (as in the image above). Under the ‘My Positions’ header. Here you will see the vault position you are in (Asset-Asset LP) and under this the eleBANK it is using (ETH-USDC WLP, using eleUSD bank in this case). You will see the total size of the position (this will start at collateral multiplied by leverage amount). Hovering over the ‘?’ next to this will show your current collateral — this is the amount that you would be able to withdraw if you closed your position now — subject to withdrawal fees. Next is the leverage column. This will start at your initial leverage position and move up or down dependant on a number of factors. If LP value drops versus collateral then leverage position will increase. Borrow fees for leverage yield farming will also increase leverage position. Likewise if LP value increases versus collateral then leverage will drop. Rewards earnt and compounded to grow the underlying collateral value will also reduced leverage. Debt ratio is the next column which is essentially another way of looking at leverage, as it is collateral / current position value. Once this reaches 100% the position is susceptible to liquidation. In the final column the user has a button to ‘Adjust’ or ‘Close’ their position. Adjust allows the user to deposit more collateral, this will reduce leverage and debt position and as a result liquidation risk. Close allows them to close, with assets being returned to them in the form of what was deposited (initial collateral + or — gains or losses and — fees). # Interest Rates Interest rates for lenders are calculated according to how much collateral inside the eleBANK is being borrowed at any given time. Interest rates will increase as higher percentages of collateral are being borrowed in order to incentivise lending and will reduce when the opposite occurs to incentivise borrowing. This uses a figure known as the “Utilisation %” to calculate the interest rate at any given time. This is simply a percentage of collateral being borrowed / collateral available to borrow.
The eleBANK will use a triple slope interest rate model based on that utilised by Alpha Finance’s Alpha Homora’s protocol () to set rates. This means the interest rate for the platform will be correlated to the “Utilisation %” where the system is most incentivized to aim for between 80-90% utilisation of collateral funds in the eleBANK.
A graph of how this rate scales to best achieve this is below: ![](https://2523304903-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MfQcuMiisMMS-WcAHQC%2F-MfSpCj2nATxfANjgzK8%2F-MfXRthS7Yp7RmOpUMef%2FeleBANK%20interest%20rate%20graph.jpg?alt=media\&token=cb1ed295-a2e9-4765-9832-e3c231e16a84) At any given time the interest rate for the platform that is set by the above model is that which is charged to borrowers. This rate is charged to any leveraged position and taken as a percentage of the overall debt size of the given position, this is charged to the lender on a per second basis, based on the platform interest rate at the time. For lenders, they will receive an annual interest rate of 89% of what is charged to borrowers, eg if the model above has the interest rate of 10%, the lending interest rate will be 8.9%. This annualised rate is accrued by the lender and accrued to the lender on a per second basis. The additional 11% of interest fees is taken back in by the Eleven Finance platform for additional development of the Eleven Finance ecosystem as a whole (this includes payments to the Eleven Finance Recovery Vault). Similar to our vault model, the underlying quantity eleBANK (this could be eleUSD, eleBTC, eleETH or eleMATIC) that is given to the lender on starting to lend will stay the same. The value of this eleBANK will slowly increase, and be realised in the underlying leant assest when the user withdraws from a lending position. For example, if a user lent 10 ETH and received 9.5 eleETH in return, and continued to lend for a year, if the platform rate stayed at 10% for the whole year, when the user exited their lending position, withdrawing from the eleETH bank with their 9.5 eleETH they would withdraw 10.9 ETH. # Liquidation Taking on a leveraged position as a yield farmer comes with increased opportunity, but also increased risk. One of these significant risks is that of liquidation. When taking on a leveraged position, this position is monitored by a debt ratio. This is measured as the amount of debt taken on by a user at entry by the value of the position at present. **Once an open position is such that the collateral provided to it can no longer repay the debt it owes, it is at risk of forced closure or liquidation and loss of some or all underlying collateral of the user.** An example of this would be someone taking out a position under the following conditions: Pool: ETH-USDC WLP Collateral: 10 ETH Starting Leverage: x 3 This would make the debt size 20ETH This would make the position size/position value 30ETH worth of ETH-USDC WLP at the time of opening the position. This would make the debt ratio 20/30 = 66.66% For ease of explaining lets just say ETH : eleETH is 1:1 (this isn't the case in reality). Each position, based on a variety of factors, including the volatility of the underlying assets and leverage of the position has what is called a ‘Liquidation Leverage’ this is a the point of leverage, that if a position were to meet or go past the position would be susceptible to liquidation. Let’s say the ‘Liquidation Leverage’ for the ETH-USDC WLP position above is 3.33. Now lets imagine the price of ETH-USDC WLP drops by 10%, the position value would drop by 10%. This would make the debt ratio: (Debt) / (Position Value) = 20 / 27 = 74.07%. To calculate the current leverage of this position: ETH-USDC WLP borrowed / (ETH-USDC WLP current position size - ETH-USDC WLP borrowed) 20 / (27-20) = 2.857 This current leverage remains below that of the Liquidation Leverage and is still safe from liquidation. But as it has increased and is at more risk, and it would be wise to monitor the position. At this (or any point in the process) the leveraged yield farmer can manage their position in a variety of ways, including: Withdrawing from this position - At this point the user could close their position. If they were to do this, the first thing the platform would do is repay the debt position (20ETH) to the eleETH Bank. The remaining 7 ETH would then be returned to the yield farmer. Adding more collateral - At this point the user could also add additional collateral to their position to improve their debt ratio. They could do this by depositing additional collateral, in the form of either ETH, USDC or a combination of both. The more they add, the lower their Debt Ratio and Current Leverage Position will become, reducing their liquidation risk.
To further explore this example, lets say the price of ETH-USDC WLP drops 20% from the entry price. This would make the debt ratio: (Debt) / (Position Value) = 20 / 24 = 83.33%. Current leverage in this position = ETH-USDC WLP borrowed / (ETH-USDC WLP current position size - ETH-USDC WLP borrowed) 20 / (24-20) = 5 This is now above the Liquidation Leverage number and the position is at risk of being liquidated.
**How liquidation occurs**
The ‘All Positions’ tab of the Eleven Finance Yield Farming platform allows anyone to monitor current leveraged yield farming positions and their respective debt ratios. If any of these debt ratios meet or exceed the 100% for that pool the liquidate function can be called by anyone.\ Using the example above, where the ETH-USDC WLP Debt Ratio is > 100%, the liquidation function can be called by anyone. In calling this function the first priority and action that occurs is that the debt position is repaid. In the case above, with a debt position of 20ETH outstanding in the total position size is 24ETH. There is 20ETH Debt to be repaid to the eleETH Bank. After this occurs there is 4ETH outstanding. Following this the caller of the liquidation function is entitled to a reward of 1% of the position value - in this case it would be 0.24 WTH. Following this the remaining amount is returned to the yield farmer (3.76 ETH in this case). **\*\* Please note in the example above, and in any borrowing position, the position value is subject to the interest rate. This would reduce the position value at current rate for the platform, updated on a per second basis. This would be factored into the above calculations \*\***
# Completed Audits Eleven Finance has had the following smart contracts audited: \ addstrat.sol‌ (Certik) bankConfig.sol‌ (Certik) borrow\.sol‌ (Certik) borrowconfig.sol‌ (Certik) eleUSD.sol‌ (Certik) interestmodel.sol‌ (Certik) liqstrat.sol (Certik) addStrat.sol (Solidity Finance) bigfoot.sol (Solidity Finance) bigfootConfig.sol (Solidity Finance) liqStrat.sol (Solidity Finance) oracle.sol (Solidity Finance) **Under the following audits:** ***Certik*** {% embed url="" %} ***Solidity Finance*** {% embed url="" %} # Links Website: [eleven.finance](http://www.eleven.finance/) Twitter: [twitter.com/ElevenFinance](https://twitter.com/ElevenFinance) Telegram: [t.me/ElevenFinance](https://t.me/ElevenFinance) Medium: [Eleven Finance](https://elevenfinance.medium.com/) Github: