Leverage Investment

• Leverage investment is a service that allows users to deposit assets as a collateral, borrow assets from KLEVA, and farming in DEX (Decentralized Exchange)

• Similar to the concept of 'leverage' in traditional financial services, it enables the expansion of investment size through borrowing, aiming for high returns but carrying the risk associated with such investment.

• The maximum leverage ratio varies by pool, ranging from a minimum of 1.0 to a maximum of 5.0. A leverage ratio of 1.0 is equivalent to participating in interest farming using only held assets without borrowing.

• This approach combines the concepts of 'leverage' and 'DEX investment.' Conventional DEX investment involves depositing assets into the liquidity pool of a DEX, composed of two types of assets, to provide liquidity and receive rewards for swaps utilizing the liquidity. KLEVA utilizes the concept of leverage to receive additional KLEVA tokens as rewards for lending larger amounts than the held assets for increased DEX rewards.

• Similar to conventional DEX pairing, the values of the two assets invested (reflected in value, not token quantity) must be aligned in a 5:5 ratio. Failure to maintain this ratio will trigger automatic swaps conducted by KLEVA. The swaps are executed through an external swap service, which may incur fees.

• As leverage involves investing with borrowed funds, there is a risk of liquidation if the ratio of assets to be repaid increases in the overall investment. Therefore, managing the leverage ratio is essential. More detailed information on liquidation, risk management, and other aspects can be found through the provided links.

• There are minimum borrowing quantity requirements when lending assets for leverage investment. There are no specific constraints during the periods of initiation and termination of leverage investments.

For a more detailed explanation of the process of leverage investment, you can refer to the information available here