In order to help assist our community, and further user understanding of the MOR protocol, we have compiled a list of most frequently asked questions since our launch last week.
Note: More questions will be added/updated if necessary in future
Q: Is yield on the dashboard APR or APY?
Q: Where can I create a vault for MOR-BUSD?
A: You can create a vault for it here: https://mor.growthdefi.com/borrow/STKAPEMORBUSD-A
Q: Do I view the MOR-BUSD pool (and it’s APR) under Vaults or Farms on ApeSwap?
A: Farms. If you want to automatically compound it, you can deposit it into the vault on MOR. So you would add liquidity in ApeSwap, and then deposit those LP tokens in MOR. DO NOT add LP tokens to the ApeSwap farm IF you wish to borrow MOR (simply add the liquidity then head straight to the MOR site to open a vault).
Q: How do I use the MOR-BUSD vault?
A: You can only create MOR-BUSD LP tokens on ApeSwap. But if you want to leverage them or borrow MOR while using them as collateral, then you would deposit those LP tokens into a MOR vault:
1. Mint MOR through the Swap page on the MOR website:
(This is referred to as the PSM, or “Peg Stability Module”) You will always pay 1.001 BUSD per 1 MOR, without any slippage.
2. Pair that MOR with BUSD in ApeSwap (50/50). This means that you’ll need an equivalent amount of BUSD as you have MOR. Once you have those two tokens, go to the Liquidity page on ApeSwap to exchange your BUSD and MOR tokens for a new token: MOR-BUSD LP
IMPORTANT: check that the MOR/BUSD ratio is approximately 1 before adding liquidity
Once you have added MOR-BUSD liquidity on ApeSwap you will have MOR-BUSD LP tokens in your wallet.
3. Go to your MOR dashboard. Click “Setup Proxy.” (This is a one-time event that will allow the MOR protocol to interact with your wallet address). If you’ve already clicked this before for any other vaults, then you don’t need to click it again.
4. Click “Enable Collateral” (Only needs to be done once per collateral type)
5. Click “Open Vault” if you haven’t already opened a MOR-BUSD vault yet. Deposit your new MOR-BUSD LP tokens into a MOR vault. You don’t even have to take on any debt if you don’t want (You would just not click on the button that says “Mint MOR With This Transaction.”) Please note that you will not be allowed to borrow less than 100 MOR in order for the protocol to be profitable. So you can either mint 0 MOR or 100+ MOR, but nothing less than 100.
(If you already have an existing MOR-BUSD vault, click on “My Vaults,” and choose the MOR-BUSD vault from your vault list. There is no need to open a new BUSD-MOR vault if you have a MOR-BUSD vault already open.)
(4) That’s all! Now you will be earning yield from both swap fees & BANANA farm rewards. Just go to your MOR dashboard to see how much yield you are earning. You will be able to view your liquidation price in your dashboard after opening the vault and also simulated in the borrow page.
Q: What does the button in my dashboard that says “Setup Proxy” mean?
A: That creates a contract for your wallet address to interact with all of the MOR Vault contracts. You only need to do this once per wallet address. You won’t have to do this for every vault/ilk, as it is a global setting.
Q: Why can’t I mint less than 100 MOR when creating a vault?
A: This is due to what’s called the dust limit, which is associated in this instance with the processing of liquidations. If a users opens multiple small vaults and those positions are liquidated, it becomes a very costly process (with gas fees) for the protocol to deal with in order to remove & sell small amounts.
Q: How can I arbitrage MOR?
A: You can buy MOR at 1.001 BUSD and sell it for 0.99 BUSD via the PSM. The Swap page offers fixed rates:
In ApeSwap, the price of MOR varies:
Users may arbitrage by buying on one and selling the other (then profiting the difference).
Q: What do I do if I see 1 MOR being worth a few cents above or below 1 BUSD?
A: If 1 MOR > 1 BUSD (for example, if 1 MOR = 1.04 BUSD), you could profit from arbitrage. You would mint MOR in the MOR Swap page for 1.001, and then sell that MOR for 1.04 on ApeSwap.
If 1 MOR < 1 BUSD (eg. 1 MOR = 0.96 BUSD) you would follow the same process but in reverse (buy from ApeSwap & sell on the MOR Swap page)
Q: How come I can’t swap my MOR for BUSD on the Swap page?
A: Swapping directly via the PSM requires BUSD to be present in the contract. During times where the price of MOR on ApeSwap is below peg for an extended period (due to high borrowing demand) — the contract can become empty. In this instance it is advised for users to simply hold until such time as the price of MOR returns to peg.
Q: If I buy more of the same LP/collateral that I’ve already created a vault for, do I need to open another vault?
A: No. You would use the same vault you already opened. Just go to “My Vaults” and click “Manage” on the vault you’d like to add your LP tokens to.
Q: How can I buy/mint MOR?
A: Assuming stable price conditions, use https://mor.growthdefi.com/swap to mint MOR with BUSD rather than buying it on ApeSwap (especially when buying large amounts). This way, you avoid any slippage. However, in the instance that MOR is much cheaper on ApeSwap (ie. whenever 1 MOR < 0.99 BUSD) it is advantageous to buy from ApeSwap.
Q: What is the ideal value of MOR if I want to provide liquidity for the MOR-BUSD LP pool?
A: It is best to provide liquidity when MOR is close to its peg. This will protect you from any impermanent loss.
Q: What are the fixed rates for MOR on MOR’s Swap page?
A: Fixed Rates:
Buy MOR at 1.001 BUSD each
Sell MOR at 0.99 BUSD each
This is called the PSM (Peg Stablity Module) and helps keep MOR’s price as close to the peg as possible.
Q: I’ve deposited MOR-BUSD LP tokens, and have staked on the MOR platform. What am I earning yield in?
A: In the MOR-BUSD pool, you’re earning BANANA tokens (from ApeSwap) that are being automatically compounded into more LP tokens for you (as well as from swap fees from people trading those assets)
Q: What do I earn in the single-asset BANANA LP pool?
A: You earn BANANA that is automatically compounded into more BANANA in the form of more LP tokens when you withdraw.
Q: What is ApeSwap’s token, GNANA?
A: GNANA is the governance banana token of Apeswap. They have some special pools only for GNANA holders, including the GRO pool. The downside is that you pay a heavy fee for swapping BANANA to GNANA. (This is to encouraged longer term holding & rewarding loyalty to long-term supporters)
Q: Do I need to unstake my CAKE that is currently staked in a Wheat vault if I want to use it as collateral for MOR?
A: Yes, as they are in different contracts. Simply unstake from the wheat vault & the tokens will be ready in your wallet for you to deposit into MOR.
Q: Do the MOR vaults show the farming rewards and the swap fees rewards?
A: Yes, you can see the balance accrual of tokens under the “vault vitals” section at the top of your vault dashboard.
Q: What happens if I’m liquidated?
A: When a user is liquidated the affected collateral is no longer visible (as it has been removed by the platform).
During liquidation, your collateral is auctioned in exchange for your outstanding MOR debt + a liquidation penalty. Liquidation penalites are 1.5% for stable pairs and 15% for non stablecoin pairs.
Q: What actions can I take to reduce my risk of liquidation?
A: In order to increase your liquidation ratio users can do one of two things:
- Deposit more collateral into the vault
- Repay some of your MOR debt
Both these actions can be performed via the vault dashboard
Q: Where can I see how much my vaults have made? Does my liquidation price go higher with time, too?
A: The accrual of tokens can be seen in the “vault vitals” section at the top of the user dashboard. As you collateral increases through yield your liquidation price will drop (assuming no further MOR is minted).
As always if you wish to clarify anything or need more information join us in our Telegram.