Boosted Markets

Boosted Markets are a specialized category of lending markets in Peridot Protocol V2 designed to maximize capital efficiency and yield for suppliers. Unlike standard markets where idle liquidity sits dormant in the contract, Boosted Markets actively deploy or utilize assets to generate external yield on top of the standard lending APY.

📌 Value Proposition

• Double Yield: Earn Peridot lending interest plus external protocol rewards (e.g., Morpho Vault APY, PancakeSwap Trading Fees).

• Capital Efficiency: Idle assets are not wasted; they are put to work in blue-chip DeFi protocols.

• Seamless Experience: Users interact with a standard pToken interface (mint, redeem, borrow) while the protocol handles complexity under the hood.

🧩 Types of Boosted Markets

Peridot currently supports two primary architecture types for boosted yield:

1. Idle Liquidity Routing (e.g., Morpho)

   • How it works: Users supply a standard asset (e.g., USDC). The pToken keeps a small liquid buffer for immediate withdrawals and deposits the rest into an external vault (e.g., Morpho Blue).

   • Best for: Passive lenders wanting higher APY on single assets.

2. LP Collateralization (e.g., PancakeSwap V3)

   • How it works: Users deposit Concentrated Liquidity (CL) positions into a wrapper vault, receiving "Vault Shares". These shares are then supplied to Peridot as collateral.

   • Best for: Liquidity Providers (LPs) who want to borrow against their active trading positions without unstaking.

⚙️ Architecture

Component	Standard Market	Boosted Market (Routing)	Boosted Market (LP)
Underlying	Simple ERC-20 (e.g., USDT)	Simple ERC-20 (e.g., USDT)	Vault Share (e.g., V3LPVault)
Idle Funds	Sit in contract	Routed to External Vault	N/A (Underlying is the Vault)
Yield Source	Borrower Interest	Borrower Interest + External APY	Borrower Interest + Trading Fees
Risks	Protocol Solvency	Protocol + External Protocol Risk	Protocol + Impermanent Loss

🛠️ Core User Functions

All Boosted Markets inherit the standard PToken interface. Users interact with them just like any other market.

✅ mint(uint256 mintAmount)

Supplies assets to the market to start earning yield.

• Parameters: mintAmount - The amount of underlying tokens to supply.

• Returns: uint256 - 0 on success (reverts on failure).

✅ redeem(uint256 redeemTokens)

Redeems pTokens back for the underlying asset.

• Parameters: redeemTokens - The number of pTokens to burn.

• Returns: uint256 - 0 on success.

✅ redeemUnderlying(uint256 redeemAmount)

Redeems a specific amount of underlying assets, burning the equivalent pTokens.

• Parameters: redeemAmount - The amount of underlying to withdraw.

• Returns: uint256 - 0 on success.

✅ borrow(uint256 borrowAmount)

Borrows assets from the protocol (requires collateral).

• Parameters: borrowAmount - The amount of underlying to borrow.

• Returns: uint256 - 0 on success.

✅ repayBorrow(uint256 repayAmount)

Repays a borrowed amount.

• Parameters: repayAmount - Amount to repay (use -1 for full repayment).

• Returns: uint256 - 0 on success.

✅ liquidateBorrow(address borrower, uint256 repayAmount, address pTokenCollateral)

Liquidates an undercollateralized position.

• Parameters:

  • borrower: Address of the borrower.

  • repayAmount: Amount of debt to cover.

  • pTokenCollateral: The pToken address to seize as collateral.

• Returns: uint256 - 0 on success.

For detailed technical specifications, explore the subpages below.

Morpho Boosted Markets

PancakeSwap Boosted Markets