Introducing Smart Farming

MetronomeDAO
3 min readApr 18, 2023

Smart Farming is an advanced yield looping engine built as part of Metronome’s suite of tools to enhance APY for users.

What is Smart Farming?

Over the past few months, the Metronome team has been laser-focused on developing our most innovative feature yet, Smart Farming. This addition to Metronome’s growing suite of tools empowers users to maximize their Vesper positions by creating a self-sustaining financial ecosystem. Smart Farming is automated, removing the need for manual work and offering a more efficient way to loop yields through a single transaction.

How Does Smart Farming Work?

Smart Farming employs advanced yield automation technology to streamline complex strategies into a single process that enables users to loop their collateral. This process can be accomplished manually at a much higher cost, but by utilizing Metronome’s looping architecture, users can obtain the same result in a simplified, gas-sensitive process.

By depositing productive yield-bearing assets (supported vTokens), users can set their loop amount and generate synthetic assets that represent the same underlying assets as their collateral. This synth is then swapped for the original underlying asset on a supported DEX, such as Curve, and redeposited into the yield-bearing productive instrument (Vesper) to increase initial APY.

Example:

  1. User deposits USDC into Vesper Finance USDC pool and receives vaUSDC tokens (yield bearing token).
  2. vaUSDC is deposited as collateral into Metronome’s Smart Farming.
  3. The user can then set a comfortable loop multiplier amount and slippage tolerance.
  4. Confirm transaction.

Disclaimer: Looping deposits for yield increases the risk of liquidation. The more looping that is deployed, the higher the risk of liquidation.

Automation

Depending on the looped multiplier set during the initial transaction, Smart Farming can automate the following steps in the background, saving you time and gas:

  1. Generates X amount of selected synthetic asset.
  2. Exchanges synthetic assets through supported DEX.
  3. Redeposits back into initial Vesper Pool to boost yield position.
Smart Farming Automated Loop Process

What Sets Smart Farming Apart?

  • Smart Farming employs Vesper yield-bearing collateral to mint synthetic assets instead of relying on a traditional lending mechanism.
  • The Smart contract streamlines the process of depositing, minting, swapping, and exchanging assets, enabling users to loop their position in one transaction and achieve multiplied APY.
  • The Synthetic component of Smart Farming delivers risk-adjusted, industry-leading APY compared to other high-risk leverage yield farming protocols.
  • Users can access Mainnet strategies with Metronome and Vesper.

Accepted Collateral

Currently, Smart Farming accepts the following collateral assets:

  • vacbETH
  • varETH
  • vastETH
  • vaFRAX
  • vaUSDC
  • vaETH
  • USDC

More to Come Soon

Make sure to stay tuned to our Twitter and Discord for the latest announcements regarding Smart Farming.

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MetronomeDAO

A community-drive DeFi ecosystem. Our first protocol, Synth, is now live in beta - https://app.metronome.io