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Leveraged Farming

In this tutorial, we will guide you through the process of leveraged farming on the Mars dApp. Leveraged farming amplifies your potential gains but also comes with increased risks. Please follow the steps below to set up a leveraged farm:

Step 1: Accessing the Farm Page​

Navigate to the "Farm" page located under the "Earn" tab. Here, select a farm to LP (Liquidity Provider) into according to your investment strategy.

Step 2: Determining Your Investment​

Decide on the amount you want to LP into or establish a custom ratio to suit your farming strategy. Custom ratios allow for a more flexible and personalized approach to LP farming.

Step 3: Borrowing Assets​

Next, choose the assets you wish to borrow. Click on the "Borrow" option to proceed. Borrowing amplifies your LP position but comes with increased risk and debt.

Select the asset you intend to borrow. Note that you can borrow assets available from the pair. This borrowed amount will be split 50/50 to boost your LP position. In cases where you have set up a custom ratio, you have the option to take out a loan in an asset outside of the pair.

Step 4: Defining Borrow Amount​

Determine the amount you want to borrow, keeping in mind that leveraging increases both potential gains and risks.

Step 5: Transaction Confirmation​

Authenticate and confirm your transaction to finalize the borrowing process. This step ensures the security and legitimacy of the transaction.

Step 6: Leveraged Position Confirmation​

After completing the transaction, you should observe a leveraged position on the farm page, indicating that you have successfully set up a leveraged farm.

Step 7: Managing Your Position​

Navigate to your farm position where you can inspect the pair to deposit more, amplify leverage, or unlock your assets according to the changing market conditions.

Step 8: Monitoring Account Health​

Check the "Account Health" tab to scrutinize your new position. You will notice an increased exposure in your farm, accompanied by a debt position in ATOM (or the asset you borrowed).

Step 9: Loan Management​

Lastly, head to the "Borrow" page to evaluate your borrow position and strategize your loan repayment plan, managing your financial health adeptly.