CIAN, the leading DeFi platform, is thrilled to introduce its latest feature: the Pre-Deposit Mode. This innovative solution aims to address the challenges posed by supply caps in the AAVE ecosystem, ensuring that CIAN users can secure their spot in high-demand strategies. With the Pre-Deposit Mode, CIAN empowers investors to optimize their yield farming experience and overcome the scarcity of available opportunities. In this article, we will dive deeper into the concept of Pre-Deposit, explore its workflow, and shed light on its significance for the CIAN community.
What is Pre-Deposit?
CIAN’s recursive staking is built on top of AAVE, which implements supply and borrow caps to manage risk effectively. However, the limited availability of newly released supply cap often results in a frantic race, leaving many CIAN users unable to access desired strategies. To tackle this challenge, CIAN has developed the Pre-Deposit Mode — a mechanism that enables users to deposit assets days before the next supply cap lift and seamlessly supply funds into AAVE at the precise moment the cap increases.
How does it work?
- Deposit: Users can participate in the Pre-Deposit Mode when it is open. Deposits are made into the pre-deposit pool, denominated in wstETH for accurate pool position calculation. As part of the process, CIAN automatically swaps any deposited ETH to wstETH, ensuring seamless integration into the ecosystem.
- Lock-up Period: Once the pre-deposited funds enter the lock-up period, CIAN begins executing the strategy on behalf of the users. During this period, investors are unable to withdraw their assets as CIAN actively manages and optimizes their funds for maximum returns.
- Execution and LP Tokens: Upon successfully executing the strategy, the vault automatically sends LP tokens back to the user’s wallet address. If, for any reason, a portion of the pre-deposited funds fails to enter the strategy vault, the remaining assets are promptly returned to the user.
Note: While CIAN has implemented the Pre-Deposit Mode to increase users’ chances of accessing strategies, it is important to note that the availability of supply cap space is subject to the overall AAVE ecosystem’s supply cap limits. In some instances, despite pre-depositing, certain funds may still be unable to enter the strategy vault due to insufficient supply cap availability.
Conclusion: CIAN’s launch of the Pre-Deposit Mode marks a significant milestone in tackling the supply cap issues prevalent in the DeFi space. By offering users the opportunity to secure their position ahead of time, CIAN is revolutionizing the way investors engage with yield farming strategies. The Pre-Deposit Mode reflects CIAN’s commitment to delivering innovative solutions and empowering its community members to navigate the dynamic world of decentralized finance with confidence. Stay tuned for more exciting developments from CIAN as we continue to shape the future of DeFi!
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