FAQ

What is Extra Finance?

Extra Finance is a community-driven leveraged yield farming (LYF) and lending protocol built on Optimism.

Extra Finance enables users to farm a diverse range of farming pools on Velodrome and other Dexes. Users can customize their farming strategies with options like re-investing, market-neutral, and long/short farming strategies.

In addition to LYF, Extra Finance also functions as a lending protocol. Users can deposit funds into its lending pools to earn interest on their deposited assets. This feature provides users with a way to earn passive income.

Who is behind Extra Finance?

The core development team comprises experienced professionals with solid finance and software development backgrounds, particularly in native DeFi protocols.

Dev Team:

Ceylon Phoker - Product Manager, discord: Ceylon Phoker#1051

Ben - Contract Dev, discord: Ben Satoshi#8308

Martin White - Full-stack developer, discord: Martin White#1864

Karman - Front-end Dev, discord: Karman#9912

Operation Team:

Cecilia - Operation & Community Manager, discord: Cecilia_ExtraFi#5880

Scarlett - BD & Operation Manager, discord: ScarlettEF#4928

Eeight - Community Manager & Ecosystem Relationship, discord: ExtraE8#5481

Security designs in your smart contract?

Constrained Admin Access

• No fund withdrawal function is reserved for admin in smart contracts.

• Multi-sig authentication is implemented for contract configurations, such as parameters like protocol fee, liquidation threshold, reserve rate, etc.

• Upgrades on contract configurations are subject to a governance process, which includes a set of procedures and guidelines. This process involves multiple levels of review and approval from various stakeholders and serves to ensure transparency and consistency in managing changes to contract configurations.

Price Protection

• The Time-Weighted Average Price (TWAP) model is implemented in Extra Finance's smart contract to safeguard against abnormal price fluctuations and potential malicious price manipulation.

Is Extra Finance audited?

• Yes, Extra Finance is audited by Blocksec and PeckShield. The reports can be found here.

• Extra Finance runs a bug bounty program on ImmuneFi that rewards whitehats for reporting valid vulnerabilities in our code. You can find further information on this program here.

Is Extra Finance open-sourced or not?

The smart contract of ExtraFi is now partially open-sourced and verified on Etherscan, which can be tracked here, and Extra Finance is continuously working on transparency.

https://optimistic.etherscan.io/address/0xf9cfb8a62f50e10adde5aa888b44cf01c5957055#code https://optimistic.etherscan.io/address/0xbb505c54d71e9e599cb8435b4f0ceec05fc71cbd#code

(Update: Newly open-sourced code on Jul 2023)

https://optimistic.etherscan.io/token/0x2dad3a13ef0c6366220f989157009e501e7938f8#code https://optimistic.etherscan.io/address/0xb7d8613728efcfbb18bcd63deec06f64441d322a#code https://optimistic.etherscan.io/address/0xe0bec4f45aef64cec9dcb9010d4beffb13e91466#code

(More in the schedule along with additional audits and bug bounties)

If I farm/lend on Extra Finance, where is my asset exactly kept?

Extra Finance ensures that users have complete control over their assets when they open a farming or lending position. The assets remain in the user's control in the smart contract.

Neither the dev team nor any third-party protocols can access, freeze, or transfer them. In addition, users' assets are not deposited into any third-party lending protocols.

How can I gain $EXTRA token on your platform?

We will incentivize lending pools on Extra Finance with our native governance token at the mainnet launch.

Details about our emission plan could be found on our blog or Twitter.

Detailed tokenomics of Extra Finance can be found here.

What is the frequency of re-investment (or auto-compounding) for farming positions?

ExtraFi has an exclusive real-time re-investment mechanism:

• Each transaction made on ExtraFi triggers auto re-investment.

• In addition, off-chain bots trigger re-investment every 1-2 hours, guaranteeing that re-investment always takes place.

Why is the 'PnL' greater or smaller than the value of 'Farmed'?

The 'PnL' (Profit and Loss) can be greater or smaller than the value of 'Farmed' due to various factors. Here are some reasons:

1. Impermanent Loss: Impermanent loss occurs when the value of the underlying assets in a liquidity pool changes relative to the value of the same assets held outside the pool. If the impermanent loss is significant, it can result in a lower 'PnL' compared to the 'Farmed' value.

2. Price Variation of Underlying Asset(s): The 'PnL' is influenced by the price movement of the underlying asset(s) in the farming position.

3. Borrowing Interest: If you have borrowed assets (leveraged) to participate in the farming position, the interest you need to pay on the borrowed assets will reduce your 'PnL' compared to the 'Farmed' value.

4. Swap Cost: The 'swap cost' refers to the fees charged by DEX and potential slippage when converting your initial deposit into LP tokens. These costs are subtracted from the 'Farmed' value to calculate the 'PnL', so they can impact the final result.

All information about EXTRA

How to get EXTRA?

• Through lending emissions on https://app.extrafi.io/lend

• Keep an eye on our recent campaigns: https://medium.com/@ExtraFinance

• Swap on Velodrome: https://velodrome.finance/swap?from=0x7f5c764cbc14f9669b88837ca1490cca17c31607&to=0x2dad3a13ef0c6366220f989157009e501e7938f8

How to track the Price / MarketCap / Circulating Supply of EXTRA?

• Coingecko https://www.coingecko.com/en/coins/extra-finance

• Geckoterminal https://www.geckoterminal.com/optimism/pools/0x477fa18b063b7728409570d274f7a055e3da0d6e

ERC20 Address of EXTRA?https://optimistic.etherscan.io/token/0x2dad3a13ef0c6366220f989157009e501e7938f8

Where is EXTRA listed?

• Velodrome

• No CEX has been officially listed yet

What is veEXTRA and what's the utility of veEXTRA?

👉 ve-Mechanism & Utility

What does ‘100 or 1000(premium) USDC available’ mean in each farming pool?

Taking the USDC-EXTRA pool as an example, it displays ‘196K or 840K(premium) EXTRA available’:

1. ‘196K EXTRA available’ means that for users without holding 10k veEXTRA, there are 196K EXTRA available to borrow for opening a leverage position.

2. ‘840K(premium) EXTRA available" means that for users holding 10k veEXTRA, there are 840K EXTRA available to borrow for opening a leverage position.

1. If the UI displays 'No sufficient Token available', it means that the borrowing credit for this pool has been exhausted. No one can borrow from it unless the pool's borrowing credit is increased.

What does ‘Credit’ mean for each asset?

Taking the EXTRA-WETH farming pool as an example, the WETH credit limit for this pool is set at 200. This is theoretically the maximum amount of WETH that can be borrowed from WETH lending pool for this farming pool. However, if there is not enough WETH in the lending pool, borrowing won't be possible.

‘WETH borrowing limit on EXTRA-WETH’

As the screenshot shows, the pool has 200 WETH borrowing credit, and 158 out of 200 WETH credit have been used.

When you hover over the bottom bar, additional Borrowing Info is visible.

‘Total Borrowed’:

The total amount of WETH borrowed from the ExtraFi lending pool https://app.extrafi.io/lend. The % value in brackets indicates the current utilization of the WETH lending pool.

‘Utilization Cap’:

• ‘80%(Stable pools set at 50%)’ is for users without holding 10k veEXTRA, and they can only borrow this asset if the utilization of the lending pool is under 80%(50% for stable pools).

• ‘95% with Premium’ means users with 10k veEXTRA can borrow up to a 95% utilization.

(Note that the borrowing credit for each asset may be exhausted before its utilization reaches 95%.)

How is farm APY calculated on ExtraFi?

$\large{APY = Equity_1 / Equity_0} \\ \small Equity_1 = Position_1 - Debt_1 \\ Position_1 = p_1 + (p_0 + p_1)/2 * aprToApy(FarmingAPR@1x, days) \\ Debt_1 = d_1 + (d_0 + d_1) / 2 * aprToApy(BorrowInterestRate, days) \\ p_0 = Equity_0 * leverage \\ p_1 = Equity_0 * leverage * LPchange \\ d_0 = Equity_0 * (leverage - 1) \\ d_1 = Equity_0 * (leverage - 1) * LPchange \\ LPchange = \sqrt{token0change * token1change} \\ token0change = token0price_1 / token0price_0 \\ token1change = token1price_1 / token1price_0 \\$

*. calculation of APR to APY: https://www.aprtoapy.com