Optimizing profits with MERLINLAD

6 min readMay 31, 2021

Defi is a term given to financial services that have no central authority or someone in charge. The rise of decentralized finance has been a tremendous boon for the whole cryptocurrency sector. Despite the proliferation of DeFi products on Binance Smart Chain (BSC), no functional farming project has truly facilitated users comprehensively. Using decentralized money like certain cryptocurrencies that can be programmed for automated activities, we can build exchanges, lending services, insurance companies, and other organizations that don’t have an owner and control by anyone.

These Decentralized finance systems use protocols, cryptocurrencies, and smart contracts to build the application (dapps) on Ethereum and Binance smart chain which are open to all. The traditional finance system is centralized, opaque, and dependent on few entities of the system while the purpose of Defi is to create a financial ecosystem that is opposite to centralized finance in terms of open source, permissionless, transparent, and without any central authority. In Defi, users can control their own assets and manage them for high returns interacting with Dapps.

What Is Yield Farming in Decentralized Finance

Yield farming is a thanks to make more crypto together with your crypto. It involves you lending your funds to others through the magic of computer programs called smart contracts. reciprocally for your service, you earn fees within the sort of crypto.
Yield farming also mentioned as liquidity mining, may be a thanks to generate rewards with cryptocurrency holdings. In simple terms, it means locking up cryptocurrencies and getting rewards.
What is a liquidity pool? It’s basically a sensible contract that contains funds. reciprocally for providing liquidity to the pool, LPs get a gift. That reward may come from fees generated by the underlying DeFi platform, or another source.
Yield farmers will typically move their funds around quite lot between different protocols in search of high yields. As a result, DeFi platforms can also provide other economic incentives to draw in more capital to their platform. a bit like on centralized exchanges, liquidity tends to draw in more liquidity.

What is Merlin?

Merlin is an auto-compounding yield aggregator with an ecosystem optimized to specialize in safe and sustainable maximum yield return. Merlin combines yield maximization with functionality, delivering an all-encompassing DeFi platform. Merlin takes care of gas costs, APY tracking, optimal yield strategies, security with the goal of maximizing DeFi users’ yield farming at rock bottom possible cost

How CAKE Maximizer works

CAKE Maximizer Vault helps users maximize CAKE tokens. In the CAKE Maximizer vault, Merlin takes the rewards out of the original staking rule and places them in the CAKE auto pool. Based on the calculation since the CAKE pool is almost always higher in the APY, the CAKE Maximizer vaults will result in a higher overall APY. CAKE Maximizer version of all vaults to give users more flexibility with their reward selection.
Example
In this example I will show you how the CAKE Maximizer repository works:

• John deposited his BTCB-BNB LP into the Merlin CAKE Maximizer vault
• Merlin’s smart contract takes care of all the behind-the-scenes mechanics: Putting John’s assets into PancakeSwap, collecting CAKE rewards, and automatically pooling CAKE rewards directly into the CAKE pool at the optimal frequency to Guaranteed maximum profit

Merlin exists to increase freedom, accessibility, and property sovereignty for everyone in the digital economy. And when joining with Merlin the profit result will be the best, this is really worth looking forward to .

Goal of Merlin

Establish a comprehensive suite of products not only within BSC but across all chains
Increase the value in MERL tokens by developing complementary product features that will expand the token utility and adding ongoing deflationary mechanisms that will control token supply
Optimize protocol security and robustness through audits, multisignature scheme, and periodic security updates
Create accessible blockchain products through user-centricity and relentless improvement

Why Merlin?

Merlin combines yield maximization with functionality, delivering an all-encompassing DeFi platform.

Benefits of Merlin

A yield aggregator that helps you auto-compound your assets
An ecosystem that helps your earn more key cryptocurrencies (aka. BTCB, ETH, BNB, CAKE, etc.) by staking $MERL

What is the Merlin token?

MERL Token is our native governance token. MERL holders govern our ecosystem and receive a distribution of overall fees.

$MERL is minted via Merlin smart contracts. For every 1 BNB distributed in the MERL reward vault, 25 MERL are minted and distributed.

$MERL does not have a maximum supply due to the need for a wide distribution of tokens to accommodate for utility within the range of DeFi product suites planned within the upcoming development roadmap.

$MERL tokens are minted in proportion to BNB earned on the platform.
Buyback & Burn: 50% of the Burn contribution is used to perform market buy-backs of $MERL tokens to stabilize price during market volatility
Lottery: 50% of the Burn contribution will be used to purchase $MERL and injected into the lottery pot. 20% of the pot is burnt
Further deflationary mechanics will be introduced for $MERL ecosystem to become deflationary

Token utility

Earn key cryptocurrencies (aka. BTCB, ETH, BNB, CAKE & more to come) rewards when staked in MERL pool
Governance
Win more $MELR via MERL lottery
Receive rewards from cross-chain vaults

How Merlin Works?

The Merlin ecosystem begins with the Vaults. As users stake in the Merlin vaults, our algorithm optimized auto-compounding mechanism will compound users’ assets for maximum return
The vaults rewards will be in the form of LP rewards and $MERL. The $MERL portion of the reward is generated by the Boosted Yield Convertor
Boosted Yield Convertor maximizes user’s profits by converting 50% of their auto-compounding vault rewards with $MERL tokens, which will maximize users’ yield:
The collected Boosted Yield Convertor will be converted into BNBs and redistributed as MERL pool rewards at $MERL LP Treasury
For every 1 BNB converted through the Boosted Yield Convertor, 25 $MERL are minted
Every 100 $MERL minted, 13 $MERL will be used to expand the Merlin product suites and global marketing activities

Merlin vaults

Vaults are automated investment instruments that utilize optimal strategies to maximize yield. Merlin uses vaults to automatically reinvest and compound deposited assets. Vaults comprise either a single token or a pair of tokens that are invested into liquidity pools.

Each Merlin vault compounds at the most optimal time according to empirical data. This usually ranges between a compound every 2–4 hours.
Compounding yourself is an inefficient process in which it is difficult to manage the optimal compounding frequency resulting in lower yields. Merlin save you time and gas fees.

Merlin Security & Audits

Merlin is created and managed by a team of experienced blockchain, technology and cybersecurity experts.

As part of Merlin’s unwavering commitment to providing a safe platform for our users, Merlin has commissioned 3 audits from reputable blockchain security audit firms. Merlin’s first completed audit from Hacken Cybersecurity has passed with flying colors.

Hacken Cybersecurity — Complete ✅
Certik — In Progress
Haechi Labs — In Progress

summary

Cryptocurrencies can now be considered as a new financial investment channel. There will always be new investors entering the market. But before profiting from it you need profit aggregators like MERLIN.
As Merlin wants to continuously grow and develop the DeFi ecosystem, the security and correctness of smart contracts and blockchain-based protocols will remain central. Merlin is committed to undergoing additional security checks with each new major product release to ensure the integrity of the smart contract code and the security of its users. Although Merlin had a little trouble recently, none of its partners suffered. I strongly believe in the success of this project.