Risk Harbor x Mycelium
Delivering algorithmic protection for the Mycelium community of LPs.
🍄🤝⛵ Risk Harbor’s Core V2 Vault is now supporting protection for Liquidity Providers on Mycelium Perpetual Swaps 🍄🤝⛵
What is the Risk Harbor Vault?
Risk Harbor is the only permissionless and fully algorithmic protection provider in DeFi, and they have recently launched their Core Vault 5 on Arbitrum. The Vault creates a protection market for DeFi users interacting on protocols, and now that protection is available for the Mycelium community of LPs!
The Risk Harbor Vaults provide permissionless and algorithmic protection for multiple protocols, where policies and claims are executed automatically. The Risk Harbor vaults are also risk-managed programmatically via a novel AMM model. Additionally, the AMM then uses vault capital for leveraged trading to generate rewards for Risk Harbor Vault depositors.
The policies are currently about three months, and users can customize their protection policy by altering the price of their premium.
Here is more information on the Risk Harbor algorithmic mechanism and how to purchase protection:
User Guide — Purchasing Protection
Step 1: Navigate to the “Buy Protection” tab, and select the pool.
Step 2: Navigate to the order box, select the “Protect” tab, and enter the amount of the token that you want to protect.
Step 3: You should be able to view two things:
First, you are able to see the “Payout”, which demonstrates how much you would get paid out denominated in USDC if there is a default event on the pool.
Second, you are able to see the “Premium”, which is the price of protection denominated in USDC.
Step 4: Click “Purchase Protection” and approve the transaction in your wallet.
Step 5: If you purchased protection successfully, you should see a “Purchase Successful” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.
User Guide — Providing Protection
Step 0: Acquire USDC, the underwriting asset for this vault.
Step 1: Navigate to the “Purchase Protection” tab, and select the pool.
Step 2: Navigate to the order box on the Vault page, enter the amount that you want to underwrite and invest.
Step 3: Click deposit and approve the transaction in your wallet.
Step 4: If you successfully underwrite, you should see a “underwrite successful” notification pop up at the top right of your screen. You are also able to click the “View transaction” link and view your transaction on Etherscan.
What it means for the Mycelium Community?
Mycelium is excited to partner with Risk Harbor to deliver effective and permissionless risk management for our community on Arbitrum.
The Risk Harbor community voted on a proposal via Snapshot to deliver algorithmic smart contract protection for Mycelium MLP holders. The proposal passed and the Risk Harbor team were quick to release their vault. MLP is the Mycelium Liquidity Pool token. When LPs deposit assets (ETH, BTC, LINK, UNI, FXS, BAL, CRV and a range of stablecoins) the Mycelium protocol mints MLP tokens that represent the Liquidity Providers exposure to the basket of assets in the pool.
The fsMLP vault on Risk Harbor allows users to deposit USDC to the vault, select their premium, and purchase protection in the event MLP falls below 45 cents as determined by MLP Aum/MLP supply. Claims will be paid out in USDC.
MLP holders can get started and purchase protection in the Risk Harbor Vault here: https://core.riskharbor.com/pool/arbitrum/0xbcA81A2118982182d897845571BE950aE94C619c/4
We’ve also added a link to the Risk Harbor Vault on our Buy Page: https://swaps.mycelium.xyz/buy_mlp