Leveraged Farming ( Coming Soon)
Leveraged farming empowers storage providers to amplify their farming positions by acquiring additional liquidity from external sources, which they use to bolster their farming efforts. This increased liquidity enhances their computational power, consequently leading to higher block rewards.
For instance, if storage providers initially farm with an X-level of computational power, they receive Y returns. However, by engaging in leveraged farming and doubling their computational power to 2X, they can expect to receive 2Y returns. It's important to note that storage providers are obligated to pay interest for the privilege of using borrowed funds. Nonetheless, the true strength of leveraged farming lies in its capital efficiency – the capacity to borrow more funds than the collateral they put up.
Last updated