🎇Leveraged Yield Farming
Eternal Finance is thrilled to unveil our cutting-edge Leverage Yield Farming product, designed to maximize your DeFi investment returns. With Leverage Yield Farming, you can borrow funds from lending pools and add them to the liquidity pool of DEX, creating a larger position that generates more rewards and thus increases your yield.
Mechanism
Our platform offers undercollateralized loans, which allow farmers to borrow from lending pools.
Lenders can enjoy higher APYs and increase the utilization rate because of leverage yield farming.
Eternal Finance offers different leverage options that determine how much users can borrow.
The higher the leverage, the greater the potential rewards, but also the higher the risk of liquidation if the price of the underlying assets falls.
All the harvested yield will be reinvested into the LP automatically by our bot. Once the vaults accumulate 20 Cakes yield, or if the last transaction was longer than 1 day, the automation will be triggered.
Example
With 10,000 USDC to open a 2x leveraged position, instead of just providing liquidity, you can borrow an additional 5,000 APT with leverage to create a position of 5,000 APT and 10,000 USDC. This increases your position size and generates more rewards, resulting in a higher yield.
Risk Management
To manage the risks of liquidation, Eternal Finance uses a liquidation mechanism to close out positions at risk of becoming undercollateralized, protecting the platform's lenders and ensuring its solvency. In summary, leverage yield farming is an excellent tool to maximize yield in the DeFi space, but users should carefully consider the risks before engaging in this investment strategy.
Difference between Strategy and Farming
Eternal Finance understands that not all farmers are equally experienced in the DeFi space. That's why we have prepared a Pseudo Market-Neutral Strategy to help less-knowledgeable farmers to navigate the complexities of leverage yield farming
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