Long farming
Introduction to Long Farming
Long farming is an annex contract within the USDN protocol that incentivizes long-side users to engage in the system actively. Users can use the long farming mechanism to boost their yield through rewards. This mechanism aligns with the USDN protocol's decentralized vision, prioritizing transparency, security, and efficiency.
How Long Farming Works
Long farming allows participants to generate rewards with their USDN protocol positions. Participants can:
Earn rewards: Accumulate rewards based on their contribution to the protocol.
Enhance exposure: Maximize potential gains through leveraged positions.
Contribute to stability: Help maintain the protocol's delta-neutral structure.
Key components
Position management: Users can deposit, withdraw, or harvest rewards from specific USDN protocol positions.
Reward distribution: Rewards are distributed based on the initial trading exposure of the position and the reward allocated per block.
Security components
Notifier incentives: The long farming contract must trigger when a position is liquidated in the USDN protocol to halt rewards to the owner and remove the position from the contract. To ensure protocol health, the contract incentivizes notifiers to report liquidations. The notifier receives a part of the position's reward.
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