Adrastea FAQ

This section provides answers to frequently asked questions. For additional information, refer to the page titles in the document navigation on the left, where each section covers specific topics in detail.

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Passive Pools

Why Lend?

Users can effortlessly provide liquidity to earn a competitive APY on their assets with one-click. Passive pools do not have market exposure, eliminating the risks of liquidation and impermanent loss, while remaining fully collateralized.

Where does the yield come from?

The liquidity provided is lent to users who engage in boost positions. In return, passive pool providers earn interest based on the size of their position and the utilization rate of the passive pools.

What are the risks?

Since passive pools are not exposed to market fluctuations, there is no risk of liquidation. The primary risk users need to consider is the potential for smart contract vulnerabilities.

Adrastea has taken extensive measures to mitigate smart contract risks, including a thorough audit and a bounty program to identify potential vulnerabilities. However, it's important to recognize that these risks can't be entirely eliminated. Users should be aware that interacting with smart contracts involves inherent risks and are advised to exercise caution and due diligence when using the protocol.

Are there any fees?

0.1% - Withdraw fee¹

The protocol does not charge any additional fees during Epochs.

¹ There is only a withdrawal fee to prevent spamming actions on the protocol.

How to claim the yield?

Users’ yields are automatically compounded daily within their positions. Upon closing their passive pool position, users will receive their initial investment along with the accumulated yield, minus any applicable withdrawal fees.

Сan I always withdraw liquidity from passive pools?

Conceptually, yes. Please be aware depending on the pool’s utilization ratio, not all liquidity may be withdrawable at once if the utilization is high. This doesn’t indicate that the protocol has lost money or is insolvent; it simply means the liquidity is being utilized in the Boosts. When available liquidity is low, the APY increases to attract more capital providers and achieve equilibrium. Adrastea will be able to adjust the utilization curve parameters to influence protocol behavior in unusual situations.

Boosts

Why boost?

By boosting with Adrastea, you can effortlessly access amplified yields on your assets. Adrastea allows for one-click boosts, auto-compounding, predefined leverage, and clear statistics to help you understand your position performance.

What are the fees?

0% - Boost your yield for free.

Adrastea doesn’t charge any fees during the epochs. The only cost is the borrow APY paid to the passive pool liquidity providers. Borrow APY is deducted from the user’s position (collateral) for borrowing liquidity from passive pools. This APY can fluctuate based on the utilization of the passive pools’ liquidity. Additionally, you need to be aware of slippage cost. Boosts may incur a maximum allowable slippage of up to 3% when buying and selling leverage on Meteora due to the market conditions.

What are the Risks?

Risks and Return Considerations

Understanding the balance between risks and returns is crucial when engaging with any financial protocol. While our protocol is designed with a smaller, predefined leverage to minimize the likelihood of reaching a liquidation point, users must always be aware of their liquidation price and the conditions under which liquidation could occur. It is the user’s responsibility to monitor their positions and understand the associated risks.

Smart Contract Risks

While Adrastea Finance has taken comprehensive steps to mitigate smart contract risks, including conducting a thorough audit and launching a bounty program to identify potential vulnerabilities, it is important to acknowledge that risks associated with smart contracts can never be entirely eliminated. Users should be aware that engaging with smart contracts carries inherent risks, and they are advised to exercise caution and due diligence when using the protocol.

What is the boosting process?

When a user clicks the boost button, their position is used as collateral to borrow liquidity from passive pools, which is then used to buy more of the asset on Meteora Swap. All actions are recorded on-chain, and when the position is closed, the leveraged asset is sold, the borrowed amount is returned, and earnings are calculated, all in a single transaction. The user must understand key parameters like Borrow APY, which affects the cost of borrowing, and regularly monitor the liquidation price to manage risks. Adrastea simplifies tracking by recording on-chain data, showing earnings, borrow costs, and PNL to aid in informed decision-making.

Liquid Restaking

What is Liquid Restaking on Adrastea?

When you restake on Solayer, your funds are locked in an AVS, making your position non-liquid. Adrastea changes that by giving you a liquid token (lrtsSOL), allowing you to keep all the benefits of restaking, like rewards and yields, while gaining liquidity. With lrtsSOL, you can unlock liquidity to use as collateral, leverage it, or perform other DeFi operations within the ecosystem. Simplify. Liquify.

Why Restake?

(a) Maximize Benefits: get all the existing benefits of Solayer, plus additional perks from Adrastea; (b) AVS Rewards: enjoy all the rewards from the AVS where your liquidity is delegated; (c) Unlock Liquidity: your position becomes liquid, offering key advantages: Leverage your restaked position with AVS; Use LRT as collateral; Access other DeFi integrations across the ecosystem.

How is AVS Delegation Decided?

We are developing an automated routing engine to direct liquidity to the best AVS and optimize rewards. For now, we manually identify the top-performing AVS in collaboration with the community to ensure the best results. Our initial partner for liquidity delegation is Sonic AVS.

What are the Risks?

Smart Contract Risk

It arises from the multiple interactions with different protocols and contracts. Users must be aware of the potential of vulnerabilities at each stage/interaction and take appropriate steps to mitigate these risks by selecting secure platforms and monitoring the contracts. Adrastea has implemented measures to mitigate our own smart contract risks, such as conducting a thorough audit and launching a bounty program to identify potential vulnerabilities. However, it is important to acknowledge that these risks can never be entirely eliminated.

Are there any fees?

0% - Restake your SOL for free.

How does withdraw work?

There's a waiting period to unstake your position set by the next epoch boundary. Until this time, your funds will be locked and can find this information on withdraw tab. Some protocols will offer liquidity to the pair lrtsSOL/SOL where users can trade LRT token for the underlying asset instantly.