Leverage Farming
While a developer can run all of the complex interactions onchain, executing these by going protocol to protocol is a tough task. Stackfi devs have worked this out, to have the dApp help non-technical users ape into strategies with one click thanks to "One-Click Strategies".
What it enables in 1 go, is:
Open a Credit Account based on your preferred collateral, leverage, etc.;
Swap assets if needed to the ones needed for a specific farm you chose;
LP, stake, etc. to end up in that destination as you have chosen.
Done! From assets X Y Z -> to taking leverage with Stackfi -> to swapping those into other assets -> to depositing and then staking in the protocols you chose. All in one click!
Concrete Examples:
Leverage Points & Restaking
Leveraged stablecoin farming
Leveraged liquid staking
Leveraged vanilla yVaults
Arbitrage of correlated assets
How to Avoid Liquidations
How to Avoid Liquidations Don't fall prey to the liquidation bots – protect your funds!
Liquidations exist to protect liquidity providers' capital. As a leverage user, you can avoid liquidations—and also avoid paying fees to liquidators and the protocol.
Health Factor (HF):
HF represents the health of your Credit Account.
Keep HF > 1 to avoid liquidation.
A market crash can drop positions 25%+ quickly, so stay cautious.
What can I do if my HF is close to 1?
Add Collateral:
The simplest way to raise your HF.
Add more of the same asset (or base debt asset) to reduce risk.
Change Strategy or Farm:
If you're in a highly volatile directional position (e.g. short ETH in a bull market), consider switching to a more stable or base asset strategy.
Decrease Debt:
Repay part of the borrowed funds using your collateral.
This lowers your leverage and raises your HF.
Correlated Collateral:
In cases like stablecoin debt + stablecoin farm or ETH debt + stETH farm, LTV ratios are tighter.
These cases allow higher leverage (even up to 9x) but still beware of oracle price fluctuations.
Check Health Factor:
Go to your Credit Account and view the "Manage" tab.
For margin trading, the liquidation point is also shown visually on the chart.
For farming, HF is shown directly in the Credit Account dashboard.
Tip: All HF data is on-chain and auditable.
You can even run your own liquidation bot to help secure the protocol. Chat with other liquidators and community members in the Discord to learn more.
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