3️⃣Florence V3
Welcome to V3
Last updated
Welcome to V3
Last updated
What is Florence V3?
In order to onboard new capital to the Florence ecosystem we have created a new element to the Florence dApp in co-ordination with our friends at Angle.Money.
Florence V3 was built to level up the RWA yield generation game on Arbitrum. With the help of Angle, our new mechanism introduces 'yield stacking,' allowing users to leverage the native yield of stEUR, Angle’s staked Euro stablecoin, alongside the yields within the Florence ecosystem.
With Florence V3, users are able to use Angle's stEUR, which already earns a native yield of 3.38%, to buy our flrEUR token, or they can use EURA to mint new flrEUR in the Florence Treasury. The flrEUR token is pegged 1:1 to the Euro and backed by the Florence Treasury which consists of deposited agEUR and Florence's real-world loan portfolio.
This new feature of allowing users to mint flrEUR using EURA means that Florence has the ability to more easily onboard TVL and therefore has the potential to grow the underlying loan portfolio in the future.
Once a user has flrEUR, they can either deposit it into our RWA Vaults, tapping into yields ranging from 7.25 - 9.5% APR, or use flrEUR in combination with stEUR to add liquidity to the Camelot flrEUR / stEUR liquidity pool. We have stopped incentivising this pool with Nitro/FFM rewards as the volatility of stEUR to flrEUR proved higher than expected, but we may reinstate it in the future.
This allows liquidity providers to enjoy the stEUR native yield on their stEUR position as well as FFM rewards (previously) on the flrEUR position thereby creating the ability to “stack” yields. This integration of yield stacking allowed Florence to boost the overall liquidity in its ecosystem while also supporting Angle in their RWA mission. Florence V3 offered a compound interest effect that maximized earning potential in the RWA ecosystem on Arbitrum as well as improved liquidity for Euro stablecoins but has been deprecated for the time being.
Florence V3 was a meaningful upgrade; it's a new paradigm in RWA on Arbitrum, combining stability, liquidity, and yield in one integrated ecosystem.
How does Florence V3 work?
Florence V3 introduces a yield-stacking mechanism in collaboration with Angle, aimed at enhancing the RWA yield generation landscape on Arbitrum. Here’s a step-by-step guide on how users can participate and benefit from the updated Florence V3 system:
Option A: Obtain stEUR from Angle.Money to leverage its native yield of 3.38%. This can be bought on Camelot or you can acquire it by staking EURA on Angle.money.
Option B: Directly acquire/mint EURA, Angle’s Euro stablecoin, which can be minted/borrowed against selected collateral tokens.
Step 2: Use EURA to mint flrEUR in the Florence Treasury
Use your EURA to mint flrEUR tokens through the Florence Treasury. The newly minted flrEUR is pegged 1:1 to the Euro and backed by a combination of deposited EURA and/or Florence's real-world loan portfolio.
Option A: Deposit your flrEUR into RWA Vaults to access yields ranging from 7.25% to 9.5%. This option taps into real-world asset-backed lending opportunities within the Florence ecosystem.
Option B: For stEUR holders, a unique opportunity exists to pair stEUR with flrEUR in a Camelot Liquidity Pool (LP). This allows users to earn the native yield of stEUR (3.4% APR) and Nitro FFM token rewards simultaneously (deprecated).
By participating in this LP, you contribute to boosting the overall liquidity of the Florence ecosystem while benefiting from compounded yield opportunities.
Engage in yield stacking to benefit from a compounded interest effect, maximizing your earning potential within the RWA ecosystem on Arbitrum. This integrated approach ensures you gain from the stability of Euro-pegged tokens and the lucrative yields of the Florence Finance and Angle partnership.
