How to Maximize Your Return with Duet Protocol- A User guide on Duet App V1

General User Strategies

Earn Section

Open the “Earn” tab and select a pair. Always remember that higher APY (Annualized Percentage Return) might imply higher risk.

Strategy 1: Risk-Averse

If you are extremely risk-averse, pick USDT-BUSD. The APR for this pair is the highest amongst stable coin pairs except for dUSD-BUSD. Supplying liquidity through this pair is not likely to cause any impermeant losses or capital loss due to the depreciation of asset prices.

  1. If you already hold USDT-BUSD LP, withdraw it from PancakeSwap if it is currently locked in Pancake Farm. Then supply the LP to Duet protocol.
  2. If you do not own USDT-BUSD LP, head to the “Earn” tab and click on “USDT-BUSD”. Then select the “ZAP” function. Choose the asset you wish to convert to USDT-BUSD LP and click “ZAP & Supply”.

Strategy 2: The DUET way

If you are convinced by the mechanism behind dUSD’s peg to USD, it is probably better for you to choose the dUSD-BUSD pair because its APR is simply higher.

  1. Go to the “dUSD” tab and buy dUSD with either BUSD or USDC. This is the cheapest way to buy dUSD with low slippage.
  2. Go to PancakeSwap and supply dUSD and BUSD to receive dUSD-BUSD LP.
  3. Come back to the “Earn” tab on the Duet app and supply a dUSD-BUSD pair.
  4. Another way to do this is, to go to the “Earn” tab, click on dUSD-BUSD, and use the “ZAP” function to convert dUSD to dUSD-BUSD LP tokens. Please be aware of the slippage this could cause due to the lack of depth in the dUSD-BUSD PancakeSwap pool.

Strategy 3: Risk Lover

If you are accustomed to the ups and downs in the market, the DUET-CAKE pair or BNB-CAKE pair could be a better choice for you.

  1. If you already hold the desired LP, withdraw it from PancakeSwap if it is currently locked in Pancake Farm. Then supply LP through Duet Protocol.
  2. If you do not own the desired LP, head to the “Earn” tab and click on the LP token. Then select the “ZAP’’ function. Choose the asset you wish to convert to your desired LP and click “ZAP & Supply”

Bonded Duet

After supplying your asset to Duet Protocol, you are immediately eligible for Bonded Duet rewards associated with the farms. Rewards are paid in Bonded Duet, which will mature in about 12 months’ time.

It is suggested that you hold onto these bonds until maturity. Still, you can sell it if you think the losses caused by selling it earlier are acceptable.

dAsset Section

After you have gone through all the steps in the Earn section, you now have a credit that you can use to borrow dUSD in the dAssets tab.

There are 3 kinds of situations and here’s what to do when you encounter any one of them.

Situation 1: dUSD liquidity is quite deep relative to your transaction size

Sell dUSD for BUSD to buy more LP tokens to leverage your current position. Supply new LP tokens to Duet protocol. Be aware that this is not recommended at an early stage since the depth in the dUSD-BUSD pool might not be enough to limit slippage and the reserve available in stablecoin minter could be not sufficient.

Situation 2: dUSD depth is sufficient relative to your transaction size

In this situation, you better sell half of the dUSD tokens for BUSD on the dUSD page. Pair them up again for more dUSD-BUSD pairs on PancakeSwap. Supply new LP token to Duet protocol

Situation 3: dUSD depth is low relative to your transaction size

Put up additional equal amounts of BUSD to pair with dUSD to get dUSD-BUSD LP token and supply it to Duet in order to receive Bonded Duet rewards.

Repeat this, if necessary, until the marginal increase of your position is no longer favorable or you are satisfied with your leverage level.

For Duet token holders

Our recommendation would be:

  1. Invest Duet tokens in Bonded Duet market to secure favorable returns.
  2. Pair your DUET token with CAKE or dUSD and supply the LP token through the Duet system. Feel free to enhance your returns by following steps in “General User Strategies”.

Field Training Examples

Example 1: A Newbie Risk-Averse User Who Has 100 BUSD

  1. Mint dUSD: Swap 50 BUSD for dUSD on dUSD tab.
  2. Pair LP token: Supply dUSD and BUSD at PancakeSwap to receive dUSD-BUSD LP token that’s worth $100.
  3. Supply LP token: Supply the LP to Duet protocol to receive 50 credits.
  4. Borrow dUSD: Borrow another 50 dUSD, sell half of the dUSD for BUSD on the dUSD tab.
  5. Repeat Step 2 to Step 4 for 2 to 3 times.

The approximate return is 100% on the $100 principal.

Example 2: A DeFi Veteran Who Already has $100 worth of LP Token

  1. Withdraw the LP from PancakeSwap farms or other yield aggregators.
  2. Supply LP: Supply LP through Duet protocol to get credit. Also, note that credit depends on the Liquidation Discount Ratio of the LP.
  3. Borrow dUSD and Form New LP: Borrow dUSD using the credits.
  4. Pair New LP: Supply dUSD with either Duet or BUSD to receive a new LP token on PancakeSwap.
  5. Supply LP: Supply the new LP tokens to Duet protocol to get new credits if any.

Repeat Steps 2 to 5 if needed.

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