Strategies

Yield strategies, pool mechanics and risk tranching parameters are subject to change

In CDO.Finance, there are multiple ways to participate in our ecosystem and be rewarded with CODEX tokens for catalysing growth in our platform😀 .

1. Flexible Tranche Participant

   A flexible tranche participant deposits assets into FLEX pools which has no lock-in period. Liquidity can be deposited and withdrawn at any time with no restrictions apart from gas transaction fees. There are no risk adjustment or yield leverage benefits in the flexible tranche, but users still enjoy additional APY in the form of rewarded CODEX tokens and eventual gas efficiencies via bulk transactions.

2. Junior Tranche Participant A junior tranche participant deposits assets into a CDO pool and obtain inherent leverage in accordance to the ratio of senior tranche participants that subscribe to the Tranche Pool. Junior tranche participants take on the risk of lowered yield and even capital (if the yield from the underlying source is lower than the guaranteed returns of the senior bonds), in return for expected surplus returns (junior tranche participants obtain the surplus yield after paying off the senior bonds). In addition, junior tranche participants are awarded CODEX tokens for their ecosystem activity.

3. Senior Tranche Participant A senior tranche participant can purchase bonds from the Tranche Pool if there is sufficient junior tranche liquidity. There is a limit to the number of senior tranche participants according to the corresponding number of junior tranche participants that are ready to offer risk adjustment by protecting the bond-like returns of the senior tranche. Senior tranche participants have dramatically lowered risk in yield farming through the protection of the junior tranche participants. In return, they obtain lowered yield returns that are fixed till the maturity date they have chosen.

4. Exchange LP token Staking Users can choose to be a liquidity provider to the CODEX/BNB Pool on PancakeSwap. As a liquidity provider providing smooth trading markets for our token, you are entitled to a share of transaction fees incurred on PancakeSwap by PancakeSwap users. In addition, CODEX tokens will be rewarded for your contribution in easing platform adoption through the creation of more efficient markets for CDO.Finance.