📥Tutorial - Farm
In the Farm section of Securd, you can leverage your LP token positions.
As always, first connect your wallet.
On the summary section, you can see your current balance, the split between collateral and loan position, as well as the average APY of the total position.
In this demo account, the position is only LP token USDC / ETH from Uniswap V2. And this position is generating a 9.3% APY. After clicking on this account, you can start to leverage the position.
The leveraging page is divided into left and right parts. On the left side, you have the description of your current APY, position, and collateralization. Your current position is now with a leverage of x1.0, meaning you haven’t borrowed any funds to get more yield.
Let’s now use the right side of the page to leverage your position in this Demo account. Click on “Leverage” tab, choose a multiplier for your position. Let’s say “2.7x”. Click on the button “Leverage” and confirm the transaction.
Before the transaction is done, you position is 1.0M LP-Token USDC / ETH. As you have chosen a leverage of 2.7X, your position is moved from 1.0M to 2.7M in the USDC / ETH. This is possible because now you have borrowed 2,408 $USDC and 1.2 $ETH to increase your current position. You can also see that your leverage is now 2.7x in the “Farming APY” section, you’re paying 3.4% interest rate on your two loans, but your total APY has moved from 9.3% to 19.4%.
On the collateral factor part, now you can see that you have a liquidation threshold (LT) of 132%, and a current collateral factor (CF) at 159%. This is the ratio between your collateral and your loan position, meaning that, if you maintain your CF above your LT, you have no liquidation of your position. But if the market moves, please be careful that your CF can also move and go close to your LT.
If your CF is too close to LT, you have 2 options. The 1st one is to repay some of your loans, in USDC or in ETH (depending on your LP Token).
The 2nd option is to deleverage your position. For example, you can go back to 1.3x leverage from 2.7x leverage. Click on “Deleverage” button and it automatically deleverages your position.
Let’s take a look at what happens after deleveraging. You position is now back to 1.3M LP tokens from 2.7M LP tokens, meaning that your position is back to 1.3x from 2.7x leverage. Your generated APY is now 11.3% and your collateral factor (CF) is now 433%, far away from your LT. So by adjusting your leverage, you have successfully managed your liquidation risk.
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