What is the SP-BLUR vault?
Overview
SPICE's SP-BLUR vault is built on top of BLUR's lending product: Blend.
SPICE's SP-BLUR vault is series of smart contracts that accepts a user's ETH and deploys it to earn BLUR points by placing point maximizing loan bids on Blend.
1 SP-BLUR point accumulated by the SP-BLUR vault corresponds to 1 BLUR point earned on BLUR.
Why bother with this?
Tired of spending all day farming? Let a bot farm for you while you sleep. The SP-BLUR vault is fully autonomous and runs 24/7!
Missing those juicy DeFi yield farming days? BLUR point farming on Blend is lucrative when done right. Our historical backtesting has achieved implied APYs above 100%.
SPICE is 99th+ percentile in point efficiency. Since launch, SPICE is always a top 25 most efficient point farming wallet on Blend.
Want that sweet BLUR leaderboard point boost? By pooling ETH, depositors can earn up to 150% more points by climbing the BLUR leaderboard together.
Worried about risk? SPICE's lending algorithms have deployed over $4 million in NFT loans on other marketplaces and earned ~20-40% APY. SPICE quantitative algorithms identify high risk collections and LTVs and know where not to lend.
Strategy
The SP-BLUR vault uses ETH deposits to fund P2P NFT-backed loans on Blend, generating ETH yield and farming Blur Points for depositors.
The SP-BLUR strategy attempts to maximize BLUR point farming efficiency and additional ETH yield via strategic loan bidding.
Collection LTVs are determined based on models described in Loan Selection with an expected probability of default less than 0.1%. This results in a highly risk averse but yield efficient strategy.
The SP-BLUR vault will fund loans across all whitelisted NFT collections on Blend only.
ETH yield is generated continuously while BLUR point rewards (ie. BLUR tokens) can be claimed at the end of the Blur Season.
Point Distribution
ETH yield is distributed proportionally to ETH deposited in the vault. For example, if your deposit makes up 5% of the vault TVL, you will earn 5% of the total ETH earned by the lending vault during that period of time.
Points are accumulated and distributed proportionally to ETH deposited in the vault. For example, if your deposit makes up 5% of the vault TVL, you will earn 5% of the total SP-BLUR points earned by the lending vault during that period of time.
Note:
Any point losses incurred by the vault are distributed proportionally across all point holders. For example, if you have earned 5% of total SP-BLUR points earned by the lending vault, you will incur 5% of SP-BLUR point losses.
SP-BLUR point losses only occur if loans are liquidated during the first 24 hours of loan creation. Point losses are highly unlikely due to the prohibitively high cost imposed by the BLUR protocol.
All rewards from the points will be claimable at the end of the BLUR season.
Users can withdraw their ETH early, without forfeiting any BLUR points earned.
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