Introduction to Evolve

A Decentralized Lending Platform on Cronos Mainnet

What Is Evolve?

Evolve is a fork of Tarot and Impermax Finance which are decentralized lending protocols. The Evolve protocol will allow investors with differing risk tolerances to maximize yield farming within the Cronos ecosystem. Lenders can deposit their individual tokens into the Evolve protocol’s lending pools to supply loans and earn interest. Liquidity providers (LP) can borrow using their Automated Market Maker (AMM) Liquidity Provider tokens as collateral.

This facilitates flexible and creative yield farming:

• Lent tokens are able to earn yield while indirectly providing liquidity to AMMs without the risk of impermanent loss
• Borrowed tokens are able to be used for leveraged yield farming
• Borrowed tokens can be used to implement an impermanent loss hedging strategy

Take a look at this hypothetical situation

• You are a liquidity provider with $1,000 worth of CRO/ETH locked up in MMFinance (MMFinance).
• It is currently earning you 40% APR ($400 at the end of the year if token prices and farm yield stay constant).
• You are confident in this position so you leverage your position x5 to $5,000 ($1,000 x 5).
• The farm yield is stable at 40% APR, however, you now earn ~$2,000 ($400 x 5 minus borrowing interest) per year in returns instead of the $400 you might have otherwise. Essentially earning 200% APR (40% APR x 5).

How are you able to do this? You took a loan to leverage your LP tokens times 5, and then you paid it back after earning those high yields.

We will give a more in-depth explanation of leveraging and lending in our next medium posts. Stay tuned!

Follow Evolve:

Twitter: https://twitter.com/evolutionxeco
Telegram Group: TBA
Discord Group: https://discord.gg/JY2MseKck3
Website: TBA
Gitbook: TBA
Medium: https://medium.com/@evolutionecosystem