Skip to main content

How to Leverage Up

First, go to the Borrow page and click "Manage" next to the collateral you want to borrow against.

Screenshot of borrow page

This will open an interface that allows you to create a vault. Enter the amount of collateral you want to start off with. For your convenience, you can buy the collateral using Yama using the "Buy/Sell" button. To acquire Yama, use the PSM.

Screenshot of create vault modal

After you click submit and confirm the transactions using your wallet, you'll be taken to the vault page. You can see a bunch of information, including the interest rate on this collateral type and its estimated APY. Move the slider to adjust your leverage multiple.

Screenshot of leverage

After you click "Submit" and confirm the transaction, the smart contract will automatically leverage up your collateral. It does this by initiating a flash loan, swapping the Yama from the flash loan to the collateral, adding it to your vault, and then borrowing against your vault to repay the flash loan. You pay interest on the debt you borrow, but collateral types such as mooGLP accrue yield over time. If the yield is greater than the interest rate, you make a profit!

To leverage down, slide the slider to the left and click "Submit." After you fully leverage down, you can withdraw the collateral in your vault. Because of how slippage works, you may end up with slightly less collateral than you started with. Additionally, a small amount of Yama reserved for slippage will have been returned to your wallet. You can remove the collateral from the vault if there is no debt.

It is recommended that you read the Risks page before leveraging up. As with all other DeFi protocols, there are risks involved.