# Protocol Overview

DeFi users are chasing higher investment returns from platform to platform and from network to network. Undoubtedly, leveraged yield farming is one of the most popular choices used by experienced DeFi users to maximize their profits.

Yield farming grants users additional incentives for providing liquidity to a liquidity pool. Meanwhile, leveraged yield farming is a mechanism that allows users to ramp up their yield farming position by borrowing funds in order to multiply their yields. In other words, you borrow funds so you can invest more, and, as a result, to earn more. But of course, you have to pay borrowing interests for the extra capital.

In addition, different from most of the traditional lending platforms, leveraged yield farming allows users to borrow under-collateralized loans, which establishes higher capital efficiency for yield farmers. Moreover, this might create a higher utilization rate of the lending pool, sometimes hitting more than 90%.

#### The Needs for Automation on Leveraged Yield Farming

The higher the utilization rate of the lending pool, the more the lenders gain and the more the borrowers pay. if the leveraged yield farming positions are not well-managed, the accumulated yields which are original used to compensate for the potential loss of the yield farming activity may be eroded. It is quite prevailing that losses on yield farming activities are incurred to a certain extent without sound management on the yield farming position.

We understand that it may be hard for every yield farmers to monitor multiple positions 24/7.&#x20;

To help our yield farmers generate eternal and sustainable profits all the way, Eternal Finance is proud to introduce our three automation bots:

1. Automated Compounding Bot - to maximize the earnings of positions
2. Automated Stop-loss Bot - to protect the principal of the position in fiat value for USDC-based farming
3. Automated Hedging Bot - to minimize the downside of your position due to impermanent loss and price effect


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