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Introduction

Meteor Farm is a smart contract built on the NEAR Protocol that allows users to stake their assets such as LiNEAR, wBTC, or USDT and earn passive APR in return.

How Do We Generate APR?​

We utilize users' staked assets as collateral to borrow additional assets from Burrowland.

Some assets in Burrowland come with farming rewards based on the user's Net Staked Liquidity. By strategically borrowing and restaking, the rewards earned can exceed the borrowing interest, resulting in a net positive APR.

Example Scenario​

Example Chart

In the example above, the master contract stakes $1,000 worth of LiNEAR tokens into Burrowland.

  1. The master contract borrows 1,067.5 USDC against the LiNEAR collateral.
  2. This USDC is transferred to the slave contract, which stakes it again.
  3. The slave contract then borrows 915.5 USDT, transferring it back to the master contract.
  4. The master contract stakes the USDT again.

After completing this leveraged loop, the initial LiNEAR deposit effectively earns an APR of 4.79%.

This mechanism opens up possibilities for users to maximize their yield through recursive strategies while minimizing risk through contract separation and flow control.