Leveraged Yield Farming
Last updated
Last updated
Farmers will be able to yield farm with leverage in the “Farm” page. Participants will be able to see what farms are available at this point and the total APR and APY of each farms.
1. Connect wallet and press "Farm" menu on the main page.
2. Check out the list of available farms and press "Farm" of the poot you intend to invest.
3. Set details of leverage yield farming.
1) Enter the amount of equity assets.
2) Select the leverage you intend to use.
3) Select the asset to borrow.
4) Check out possible price impact.
5) Check and select slippage settings.
6) Check out position value, equity value and debt value of your investment.
7) Press Farm to start yield farm.
Partial Close
1. Connect wallet and press "My Assets" on the main page then press "Farm"
2. Press "Partial Close" and set the position amount to close and debt amount to repay.
3. Press "Withdraw"
Entirely Close
1. Connect wallet and press "My Assets" on the main page then press "Farm"
2. Select "Entirely Close" and press "Withdraw" to close the position.
Glossary
Yield Farming : The APR of governance tokens you get from participating in DEX’s liquidity pool mining
KLEVA Rewards : The total KLEVA Token rewards given to farmers participating in KLEVA Protocol
Borrowing Interest : The interest Farmers pay to Lenders
Total APR : The Sum of Yield Farming and KLEVA Rewards APR subtracted from Borrowing Interest
** Note 1. Borrowing Interest will vary according to which token you borrow. 2. KLEVA Token Rewards are only given to farmers who borrow tokens. Thus, using no leverage(1.0x leverage) will not be eligible for KLEVA Token rewards. 3. Borrowing Interest will be calculated based on Triple-Slope Model.
What happens if we use 2.0x leverage
Farming with 2.0x leverage means your position within the Liquidity Pool has doubled. For example, if you have $100 and farm with 2.0x leverage, you will be farming with $200 in your hands.
So what actually happens if you use 2.0x leverage?
Yield Farming : Yield Farming Rewards double when compared to 1.0x leverage. (Yield Farming Rewards will triple if you use 3.0x leverage and so on and so forth)
KLEVA Rewards : Farmers will earn KLEVA Token rewards based on how many tokens they borrow.
Borrowing Interest : Doubles
So basically the leverage rate determines your Yield Farming Rewards, KLEVA Rewards, and Borrowing Interest Rate.
Adjusting your Leveraged Yield Farming Position (Adding Collateral)
After participating in Leveraged Yield Farming, you can freely adjust your position by adding more collateral.
So what actually happens when you add collateral?
Your Debt Value stays the same since you haven’t borrowed more tokens.
Your Yield Farming APR decreases since you use less leverage.
Total Asset Supplied(Equity Value) increases as you have supplied more tokens.
Total Asset Borrowed(Debt Value)stays the same since you haven’t borrowed more tokens.
Total Assets in Position Value increase as you have supplied more tokens
**Note If you add collateral in the form of a single token, your tokens will be automatically converted based on the automatic market maker(AMM) mechanism and supplied as liquidity in the farm. This can be seen in “Total Assets in Position Value.”
Adjusting your Leveraged Yield Farming Position(Borrow more tokens)
If you feel like you want to use more leverage, you can borrow more tokens.
So what actually happens when you borrow more tokens?
Your Debt Value increases since you have borrowed more tokens.
Your Yield Farming APR increases since you use more leverage.
Total Asset Supplied(Equity Value) stays the same since you haven’t added more supply.
Total Asset Borrowed(Debt Value) increases since you have borrowed more tokens.
Total Assets in Position Value increases as you have borrowed more tokens
**Note If you add collateral in the form of a single token, your tokens will be automatically converted based on the automated market maker(AMM) mechanism and supplied as liquidity in the farm. This can be seen in “Total Assets in Position Value”.
The default option for Closing your farming position is “Convert to all Debt Tokens.” However, in cases when closing a farming position does not need a big amount of swap, you may also select “Minimize Trade.” In this case, KLEVA Protocol will automatically convert the minimum required amount of tokens into borrowed tokens to pay the Borrowing Interest and return assets in both tokens of the Farming Pool.
