What can I do with Wand?

Wand is an innovative lending protocol that introduces the concept of pooled CDP. In addition to stablecoins, it also generates margin tokens, catering to the needs of various investors.

Here are some example scenarios:

Scenario1--Stablecoin users

Alice is a stablecoin user who holds USB. Every day, USB generates interest, which is automatically added to Alice's account balance.

Additionally, Alice can stake her USB in the "Buy ETH Low" pool to earn farming yield given by Wand protocol. When the price of ETH drops to the target price, Alice's staked USB automatically buys ETH at the target price with an additional discount.

Furthermore, when the 'Discount offer' is available, Alice can buy Margin tokens at a discount using USB, gaining arbitrage profits.

Scenario2--Liquidity releasing

Bob is an ETH holder who needs money to purchase another token, but he does not want to sell his ETH. In this case, Bob deposits his ETH into the ETH vault, receiving stablecoins and margin tokens in return. These margin tokens represent his long position on ETH.

Bob uses the stablecoins to buy the token he wants and, after some time, sells it for a profit. After repaying his debts, Bob burns the margin tokens and redeems the ETH he initially deposited. Thanks to the earnings of the Vault during this time, Bob ends up redeeming even more ETH than he initially deposited.

In the end, Bob has lent out liquidity to earn trading profits while also ending up with more ETH.

Scenario3--Leverage trading

Charlie is a risk-appetite investor. After observing a period of decline in ETH prices, he believes that the market has reached the bottom and wants to buy into ETH to earn investment returns. However, Charlie's funds are only sufficient to purchase 10 ETH, and he is not satisfied with this position size. So, he uses his funds to buy ETHx on Wand, which is a margin token for ETH with a 3X leveraged long ratio. This increases Charlie's long position on ETH to the equivalent of 30 ETH.

After some time, as the price of ETH rises, Charlie's profits are amplified 3X compared to spot trading, significantly increasing his investment returns.