The Wildlands
Risk & Wallet Separation - Don't combine Stronghold and Wildlands Positions on the same Wallet
The Wildlands is volatile—positions can be liquidated quickly even if managed properly.
Do NOT mix Stronghold and Wildlands positions in the same wallet.
If liquidation occurs, 50% of all assets in that wallet (including Stronghold deposits) are captured upon liquidation.
BetterBank strongly recommends keeping separate wallets for each strategy, even if just using multiple Wildlands strategies, because some strategies are more volatile than others.
If you combine Stronghold and Wildlands assets in one wallet, you assume full risk.
The Wildlands is BetterBank’s dynamic credit environment, designed to replace traditional fractional reserve banking with a fully on-chain, collateral-backed system. Unlike the Stronghold, which focuses on passive interest-bearing deposits, the Wildlands enables users to earn synthetic credit (Favor Token types), through the groves where Esteem is staked, and use them in deep, liquid LP pairs as collateral to borrow against. The borrowed assets don't require repayment, as a liquidation would take care of that. This means that the Wildlands is a source of immediately usable passive income.
Each Favor type is specific to its underlying asset, such as USDTF (Favor paired to USDT) and ETHF (Favor paired to ETH). These tokens are paired only with their native assets (e.g., USDTF–USDT) in liquidity pools and used as collateral for borrowing.
How the Wildlands Works
Users earn multiple types of Favor tokens by staking Esteem in the respective Wildlands Groves.
Each grove emits corresponding Favor Type
Pulse: DAIF, PLSF, and PLSXF Groves
Arbitrum: USDTF and ETHF Groves
Each Grove emits an amount of Favor each day equaling a percentage of the current supply of that Favor token. The percentage equals the ratio to its paired asset in percentages, up to 3%. For example, if PLSF (Pulse Favor) is worth 2.56 PLS, then that day the PLSF Grove prints 2.56% of total PLSF supply to all stakers of Esteem in that Grove.
Favor types are then paired with their respective paired assets (i.e. USDT, PULSE) to create LP tokens (e.g., USDTF–USDT LP). Primarily this happens through an automated flash-loan action when posting the Favor as collateral.
These LP tokens act as collateral to borrow from the Stronghold.
Borrow against the value of your [Favor-asset] LP position, up to a the LTV threshold.
Borrowing is the optimal strategy versus selling as it yields more assets in-hand than selling at the 50% tax rate. This sustains the Favor prices
Only when borrowing of assets is disabled because of a lack of available assets, is selling of Favor warranted as a back-up option to profit on it. Since the sell tax strengthens the treasury and the treasury instantly deposits, the selling of Favor immediately results in increased asset availability.
Establishing a Wildlands Position
Users can create a Wildlands position in two ways:
Wildlands Flash-in – Automatically forms the Favor LP using a flash loan, then deposits the LP as collateral. The result:
A 50% Loan-to-Value (LTV) position is immediately created.
Up to 80% LTV can be borrowed based on LP collateral so 30% of the LP value is available to borrow against
The LP position is 2x the value of the underlying Favor Token so users see 60% return on their Favor position vs 50% return from selling.
Manual LP Creation – Advanced users can manually pair Favor tokens with their respective assets and deposit the LP directly.
Collateral Valuation & Limits
Favor tokens are priced in ratio to their native asset, but for collateral purposes, BetterBank only recognizes Favor prices up to 3.5x the ratio.
This protects the system from exploits through price manipulation and helps ensure borrowing remains safe and predictable.
Liquidation Mechanics
If a Wildlands position reaches 85% LTV, it becomes eligible for liquidation. Here's what happens:
50% of the LP collateral is seized and broken.
The blue chip portion is claimed and the Favor portion is sold through an untaxed route.
10% of the seized value is claimed by the protocol as a penalty to strengthen the Treasury, increasing available borrowable assets for everyone.
The protocol uses the remaining collateral to repurchase and repay the borrowed assets, bringing the position back to a manageable ~80% LTV.
Risk & Wallet Management
The Wildlands is risk-intensive—positions can be liquidated quickly due to price fluctuations or high utilization.
Never mix Wildlands and Stronghold assets in the same wallet.
If a Wildlands position is liquidated, Stronghold deposits in the same wallet may also be affected.
Use separate wallets for each to minimize risk.
The Wildlands’ Role in BetterBank
Powers the protocol’s decentralized credit system.
Replaces the need for centralized trust in banking with fully algorithmic collateralized lending instead of fractional reserve banking based on "good bank management".
Fuels liquidity and borrowing across the BetterBank ecosystem.
The Wildlands is where seigniorage controlled credit meets capital efficiency—designed not for speculative defi investment, but for true on-chain financial engineering. For users who are willing to understand DeFi mechanics and risk, it unlocks powerful new tools for strategic borrowing and yield. 🧠🔥
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