Opening a leveraged yield farm position
To do this users select ‘Leveraged Yield Farming’ from the Eleven.Finance sidebar. Then will be greeted with a list of pools available to leveraged farm. To enter any of these pools select the relevant network (the site will prompt a network change if you click the ‘available on network’ button) otherwise if you are already here you will see an “Open Position” button. Selecting this, with your leverage multiplier set as you wish, will allow you to open a leveraged position by depositing collateral. Collateral type will be dependant on the vault, and allow for the position to be opened with any amount of either of the assets in the pair.
Using the ETH-USDC WLP vault on Polygon as an example, we can see the APY and APY values for the vault, as well as a slider for desired leverage. Selecting open position greets us with the popup below:
Here we can add any amount of ETH or USDC or combination of both, as well as confirming the amount of leverage. Any tokens needed approval will open an approve token pop up:
Once tokens are approved, selecting 'Open Position' and confirming the transaction will finalise this position.
Once this is completed your position will be visible lower down on the page (as in the image above). Under the ‘My Positions’ header. Here you will see the vault position you are in (Asset-Asset LP) and under this the eleBANK it is using (ETH-USDC WLP, using eleUSD bank in this case). You will see the total size of the position (this will start at collateral multiplied by leverage amount). Hovering over the ‘?’ next to this will show your current collateral — this is the amount that you would be able to withdraw if you closed your position now — subject to withdrawal fees.
Next is the leverage column. This will start at your initial leverage position and move up or down dependant on a number of factors. If LP value drops versus collateral then leverage position will increase. Borrow fees for leverage yield farming will also increase leverage position. Likewise if LP value increases versus collateral then leverage will drop. Rewards earnt and compounded to grow the underlying collateral value will also reduced leverage.
Debt ratio is the next column which is essentially another way of looking at leverage, as it is collateral / current position value. Once this reaches 100% the position is susceptible to liquidation.
In the final column the user has a button to ‘Adjust’ or ‘Close’ their position. Adjust allows the user to deposit more collateral, this will reduce leverage and debt position and as a result liquidation risk. Close allows them to close, with assets being returned to them in the form of what was deposited (initial collateral + or — gains or losses and — fees).