The Leveraged Yield Farmer’s Guide To Liquidation

Wider Price Ranges Are Safer

When you are choosing your desired leverage, watch how the estimated New Liquidation Prices range changes when you move the slider bar.

If The Price Drops Too Low

If The Price Rises Too High

Liquidation Does Not Mean Losing All Your Funds

Avoiding Liquidation

  • Choose LP tokens with more stable value. More volatile token pairs have a higher chance to go outside the liquidation price range.
  • Choose a wider liquidation price range when you take your leveraged position.
  • When prices are volatile, you may want to check back on your leveraged position often to see whether you want to deleverage.
  • If you see the price getting too high or too low, you can reduce leverage or fully exit your leverage with the app’s deleverage button. Note that this relies on confirming a network transaction, so it may require higher transaction fees or wait times if the network is congested.
  • Supply funds instead of leveraging. Supplied funds have no risk of liquidation. This will always be a safer option than leveraging and may also provide very good returns. You can supply funds in the Lending tab of the app.

Choose The Right Level Of Risk

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store