Francium Launches Yield Calculator Alongside Exciting Features — Farming Made Easier with Francium!
If you’re a seasoned farmer in DeFi space, you’ve certainly considered how to achieve your target profits through farming and the potential impacts of asset price changes on your yield.
If you are a leveraged yield farmer, you may be curious to know what kind of risk your leverage brings while bringing in more profits, and how price movements affect your profit and loss.
Now, you can get a clear picture of how your profit and principal will move with the price for different position settings through the latest tool launched by Francium — our very own Yield Farming Calculator.
Let us walk you through some of our latest features on Francium, we bet you will love it!
Yield Farming Calculator
Access YF Calculator here: https://francium.io/app/calculator
The yield farming calculator on Francium can be used as a position equity simulator based on different position settings. With the yield farming calculator, you can set up one position and see how much you will earn, how changes in price impact your equity values and the risk of liquidation. You may also model changes in value for different amounts of leverage and different borrowed assets.
The green words in the middle of the page represent your estimated profit in X days. When you hover over it, you will see the specific introduction: “The estimated profit (% of current equity) when SOL/USDC price stays unchanged after investing X day(s) by leveraged farming”. You can manually adjust the investment duration to observe its change.
Let’s look at the example below: Farm in the ORCA-USDC pool, borrow USDC, and set 3x leverage. The horizontal axis refers to the ORCA price change. The vertical axis represents percentages of Equity, and there’re two lines: Liquidation Price (Yellow Line) and Equity Value (Green Line). The Equity Value starts at 100% right when you invest.
When you hover over the yield farming calculator, a white box will appear with three values in it: ORCA/USDC Price Change, ORCA Price, and Equity Value (Leveraged Farming).
You will see the Equity Value at 100% when you hover your pointer over the current ORCA price ($13.76). What happens if the price of ORCA declines? Let’s look at the illustration. Assume the price of ORCA declines to $8.8, i.e., price has fallen 36%, and reaches its liquidation price indicated by the yellow line. Liquidation is triggered, and your Equity Value becomes 40%.
Alternatively, if the price increases, your Equity Value increases as well. The current condition explains the logic of a long position: If you borrow USDC and set 3x leverage, your Equity Value will decrease when ORCA price falls (or increase when price rises).
The above case does not take into account a stop-loss or the specific asset you deposit. In addition, trading fees or yield farming is auto-compounded, which may help avoid the Kill Position level.
In the second case, if you borrow ORCA, you will be in danger of liquidation when the ORCA price rises. What happens if the price of ORCA increases to $20.2? The price has increased by 56%, and you are at the Liquidation Price. Your Equity Value declined to 62.69%. If ORCA trades within a specific price range, you make a profit. This shows the logic of a short position. However, if the price of ORCA goes to zero, the pool’s value will decline to zero as well.
If you turn on the “Advanced Mode”, more operations can be done. You are able to adjust ORCA initial price, Farming APR, Borrowing Interest APR and Liquidation Threshold to see the liquidation price and how your estimated profit changes.
At the bottom of the calculator, you can see four lines and what each of them represents. The solid green line and the dotted green line represent your estimated profits of Leveraged Farming and Farming Without Leverage respectively. The blue line represents the situation where your asset (USDC) is sitting in your wallet. If you input the amount of any token (not USDC), you may see its linear change.
Please note that there is another button in the bottom right corner of the calculator. When you turn this button on, you are able to adjust the range of the X-axis.
Farming Simulator
To help DeFi users better farm, Francium launches yield farming simulator on the farming page to assist in opening positions of current asset pair. You’re able to know your estimated profit under different conditions with this simulator.
Let’s look at the example below: Farm in the DFL-USDC pool, borrow USDC, and set 3x leverage.
The green words in the middle of the page represent your estimated profit in X days. When you hover over it, you will see the specific introduction: “The estimated profit (% of current equity) when DFL/USDC price stays unchanged after investing X day(s) by leveraged farming”. You can manually adjust the investment duration to observe its change.
When you hover over the yield farming simulator, a white box will appear with three values in it: DFL/USDC Price Change, DFL Price, and Equity Value (Leveraged Farming).
You will see the Equity Value at 100% when you hover your pointer over the current DFL price ($0.3259). What happens if the price of DFL declines? Assume the price of DFL declines to $0.2087. This means the price has fallen 36%, which is the liquidation price. Therefore, the yellow line only indicates the liquidation price. It will trigger liquidation once it reaches the -36% position, and your Equity Value becomes 40%.
At the bottom of the simulator, you can see four lines and what each of them represents. The solid green line and the dotted green line represent your estimated profits of Leveraged Farming and Farming Without Leverage respectively. The blue line represents the situation where your asset (USDC) is sitting in your wallet. If you input the amount of DFL, you may see its linear change.
Please note that there is another button in the bottom right corner of the simulator. When you turn this button on, you are able to adjust the range of the X-axis.
Position Tracking
After opening a position on Francium, you can use the farming simulator to check your position details and track them. The parameters of this chart are rendered based on the latest data of your actual positions. You’re able to know your estimated profit in X days with it and P&L while price changes.
Let’s look at the example below: Farmed in the DFL-USDC pool, borrowed USDC, and set 3x leverage.
The green words in the middle of the page represent the estimated profit of your current position in X days. When you hover over it, you will see the specific introduction: “The estimated profit (% of current equity) when DFL/USDC price stays unchanged after investing X day(s) by leveraged farming”. You can manually adjust the investment duration to observe its change.
When you hover over the yield farming simulator, a white box will appear with three values in it: DFL/USDC Price Change, DFL Price, and Equity Value (Leveraged Farming).
You will see the Equity Value at 100% when you hover your pointer over the current DFL price ($0.326). What happens if the price of DFL declines? Assume the price of DFL declines to $0.2087. This means the price has fallen 36% to its liquidation price represented by the yellow line. It will trigger liquidation once it reaches the -36% position, and your Equity Value becomes 40%.
At the bottom of the simulator, you can see four lines and what each of them represents. The solid green line and the dotted green line represent your estimated profits of Leveraged Farming and Farming Without Leverage respectively. The blue line represents the situation where your asset (USDC) is sitting in your wallet. If you borrowed DFL or other tokens (not USDC), you may see its linear change.
Please note that there is another button in the bottom right corner of the simulator. When you turn this button on, you are able to adjust the range of the X-axis.
Francium team gets so many professional suggestions from the community while designing the calculator. Thank you so much and hope this could match what you expect and help you well.