Sustainable Leverage

Sustainable leverage is a model where there is enough Real Yield for all parties to benefit without relying on token emissions:
  1. Liquidity providers (LPs), leverage takers (LTs), and the protocol can all earn returns without needing subsidies.
  1. Incentives align so no one needs to lose for others to profit.
In this model, LPs provide the bulk of funds but take lower risk. They earn attractive yields exceeding other low-risk options.
LTs supply a smaller collateral amount but take amplified risks through borrowing. They gain higher yields from leverage compensating for the risk.
The protocol aligns LPs and LTs incentives for sustainability:
  • LPs get yields above stable pools thanks to LT collateral buffering risk.
  • LTs get "free" leverage to multiply returns in exchange for collateral to protect LPs.
Neither LPs nor the protocol benefit from LT losses. The model works when positions stay active and healthy.

Leverage Position Liquidation

Content coming soon with Leverage products.