Introducing 🪠Plunger — new product on flush.lol
Enjoyed the idea of flush.lol? Have a lot of different DeFi tokens? Maybe even shitcoins? But not ready to say goodbye and flush them yet? Ok, then make it work for you.
🪠 Plunger is designed to make you profit out of any of your tokens without selling or exchanging them.
It’s simple, we have two parties: ETH lenders and Tokens lenders.
Similar to Compound. But 🪠Plunger users can use almost every DeFi coin as a collateral. Also CDP has not only one token. Users can make their CDPs from the bunch of tokens they have to diversify a risk of liquidation.
A bit more about CDPs. Tokens lenders can create a CDP, which would contain a bunch of DeFi tokens. It will be used as a collateral to borrow an ETH from ETH lenders.
For example Tokens lender locked 15 ETH: 3 ETH in YFII, 1.5 ETH in DFI, 9 ETH in SUSHI, 1.5 ETH in CRV. Now he can take up to 7.5 ETH (50% of the CDP) loan. So now he has not only 15 ETH in DeFi tokens, but 15 ETH in DeFi tokens and additional 7.5 ETH. He can put this 7.5 ETH for any vault or liquidity pool to make more profit.
Let’s imagine that after 10 days, the price of SUSHI and CRV grew up for 30%. Price of DFI dropped for 5% and price for YFII remain still. So now the CDP is worth 18.075 ETH. And for these 10 days he kept 7.5 ETH in ETH-USDT sushiswap pool with 30% APY and made 0.06 ETH additional profit. If he’d put this ETH for something more profitable he’d make even more profit.
Yes, it’s a loan and Token lender has to pay borrow interest, but it’s most likely will be ~5% APY.
And what if this user’s CDP evaluation significantly dropped for more than 50%? It will be liquidated, and the user will save 50% of the CDP in the borrowed ETH instead of losing more. So it’s a win-win solution in both ways.
One more time: why do you need to use a 🪠Plunger? You’re an altcoin DeFi holder and you believe that some of your holdings will grow up to make you a multiple profit?
Without 🪠Plunger you’d hold your tokens and wait until the price will go up without any possibilities to use these money: if you just exchange it to ETH for some time, you will probably miss the impetuous growth of the token price and miss your profits.
And if the price will significantly drop for 50% or more and you don’t react on time — you can lose a big amount of your funds.
With 🪠Plunger you can just lock the tokens you wanted to hold in CDP, get ETH and use it to trade, deposit, pay some needed expenses, etc. And you won’t miss any potential profits because you still own all your tokens.
And if the price will significantly drop for 50% or more and you don’t react on time — you will still have 50% in ETH, so it will work for you as a risk hedging tool.
Why do ETH lenders might need to use a 🪠Plunger?
If you’re an ETH holder and you want to make profit without risks — this solution is for you. Just deposit your ETH under the interest rate without a risk of impermanent loss.
But this is not all! 🪠Plunger will also has its own Vaults. So what you need to make additional profit with your DeFi altcoins CDP? Nothing, just lock your tokens and start making profits, yes, that’s simple!
🪠Plunger v 0.1 will be released in January 2020.
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And also try the flush app if you didn’t yet: https://flush.lol