👥Barista User Guide
A step-by-step guide for users using Barista integration with the Liquid Loans protocol.
Last updated
A step-by-step guide for users using Barista integration with the Liquid Loans protocol.
Last updated
Barista integration on top of Liquid Loans to enable automatic rebalancing of users’ positions in Liquid Loans Stability Pool once liquidations are taking place.
This means that once a Liquid Loans Vault is being liquidated and its PLS is being seized in return for paying its debt with USDL from the Stability Pool, the seized discounted PLS will be automatically sold back into USDL, using B.AMM (the Backstop AMM which is the core unit of Barista).
Barista is using a similar UI to Liquid Loans for seamless interaction at the frontend level. This step-by-step guide will walk you through the main steps of how to use this integration in case this is your first time using Liquid Loans. Complete explainer videos for Liquid Loans.
First step would be to connect MetaMask to the Liquid Loans app integration on Barista. Make sure to connect with the same account where you keep your USDL.
Once your MetaMask is connected you can Deposit USDL into The Barista Pool, the USDL then will be staked automatically in the Liquid Loans Stability Pool. Barista pools users funds so you can see how much of Liquid Loans pool is managed by Barista.
Important Note about Staking $USDL in the Barista Stability Pool There are existing PLS and Loan gains in the Barista system. Whenever a new deposit happens in the protocol the system calculates the relative share and assigns the corresponding amount of PLS and Loan gains. So when someone deposits the USDL they should use the below calculation to check their claims.
(PLS * priceOfPlsGain) + (USDL * $1) + (price of Loan * LoanGains) = initalUSDLDeposit * 1$
In the current scenario, if your deposit is 100 USDL your deposit becomes 82.95 and 10.91 PLS
= 82.95 + (10.91 * 1.561334) + (0.025615 * 0.1891791) = $100 equivalent to your deposit. * Under certain conditions i.e there are no Liquidation Gains ($PLS) visible your total $USDL amount will be staked in the Stability Pool!
You can also see the current LOAN APR, which is the reward token distributed by the Liquid Loans protocol for users who deposit USDL in the Stability Pool. It’s worth mentioning that Barista does not take any cut of the LOAN rewards, which means users get 100% kickback rate for their deposits.
You can always claim any $PLS in Liquidation Gains manually by unstaking $USDL from Stability Pool. On mainnet as there will be arb bots keeping $USDL close or pegged to $1, the auto rebalancing will happen more often than not in real time! Therefore most of the $PLS in Liquidation Gains should be close to zero as it has been auto rebalanced into $USDL
In Barista you would need to Unlock your USDL on MetaMask before you can deposit into the stability pool. This is not different than any of the “regular” allowance users need to give to new tokens on Compound, Uniswap etc. Once you unlock on MetaMask, you will be able to deposit your USDL. You can use the MAX button to deposit all of your current USDL balance.
If you want to Withdraw your USDL from the Stability Pool, you need to Unstake, stating how much you want to withdraw from the pool. In the case above 75% was chosen. The tool tip at the bottom of the box will show you how much you are withdrawing and what impact it has on your share in the stability pool. Withdrawing will also automatically claim a proportionate your LOAN rewards. You can read more about Liquid Loans Stability Pool here - Liquid Loans Stability Pool
Users can stake their LOAN token through Barista in order to get their share in Liquid Loans protocol fees/rewards. Staking your LOAN is the same as in any other Liquity frontend and doesn’t include any Barista wrapper around it (like it’s done in the USDL deposits). You can read more about Liquid Loans Staking Pool in their docs — https://docs.liquidloans.io/loan-staking
