Stronghold and Wildlands TLDR

Stronghold & Wildlands Wallet Separation

To prevent loss, BetterBank strongly recommends using separate wallets for Stronghold and Wildlands positions.

• Stronghold = Safe Lending – Designed for high passive yield with minimal risk.

• Wildlands = High-Risk Credit System – Positions in Wildlands are prone to rapid liquidations.

• Mixing Positions = High Risk – If a Wildlands position is liquidated, all Stronghold positions of that same wallet are also liquidated.

• Advanced Users Only – While expert users may choose to manage both within one wallet, it must be understood that any safety that is by design inherent to the Stronghold immediately becomes void through such actions.

Recommendation: Always use separate wallets for each strategy, and protect your Stronghold assets from the high-risk exposure that is normal in the Wildlands.

Stronghold – Secure Lending & interest yielding Hub

• Primary Use Case: Safe lending with high APY returns.

• How It Works: Users deposit assets and earn interest and Esteem. The interest is paid by borrowers on the Wildlands side of BetterBank.

• Risk Level: Very Low – Funds are secured with collateral-backed loans and liquidations protect depositors.

• Key Features:

  • High-yield lending markets (50-72% APY as expected standard).

  • Uses Esteem as an additional reward for depositors.

  • Borrowing requires over-collateralization to maintain system security.

Wildlands – Advanced DeFi Credit Leveraging Seigniorage

• Primary Use Case: Uncertain but potentially extreme rewards, using a synthetic credit system with Favor tokens.

• How It Works: Users earn respective Favor token types by staking Esteem in specific groves in the Wildlands and use Favor LP as collateral for loan positions.

• Apparent Risk Level: High – Favor-backed positions are subject to systematic liquidations and interest rate fluctuations.

• True Risk Level – Very Low: Regardless of any liquidations, the user's Esteem remains untouched, meaning that Wildlands users will quickly have new free Favor to create new positions with.

• Key Features:

  • Capital Efficient Borrowing with Favor token LP acting as collateral.

  • Demand Driven Seigniorage based supply expansion along combined with collateralized credit borrowing being more profitable than selling starkly reduces Favor sell pressure.

  • High risk, high reward – A 50% liquidation of collateral occurs at 85% LTV, resetting the LTV to about 80%, but liquidation only strengthens the protocol and does not hurt the borrower since collateral is earned through seigniorage.

Synergistically, the Stronghold provides a safe lending foundation, while the Wildlands offers a dynamic DeFi experience for users looking to capitalize on the protocol's growth. 🚀