Leveros
  • Introduction
  • Leveros Pools
  • Health Factor
  • Lending on Leveros
  • Borrowing on Leveros
    • Standard Borrowing
    • Leveraged Borrowing
      • Spot Leverage
      • Leveraged Farming
  • Security
    • Risks
    • Audit
  • Documents
    • Privacy Policy
    • Terms and Conditions
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  1. Borrowing on Leveros
  2. Leveraged Borrowing

Spot Leverage

Spot leverage enables users to get leveraged long/short positions by swapping borrowed assets (for instance on Uniswap) and deposit the swapped assets as collateral in the same transaction.

Example

A pool supports ETH with a collateral factor of 0.9 and USDC with a borrowing factor of 0.8.

The price of ETH is $1500

A user deposits 1 ETH of collateral in the pool. He then uses spot leverage to borrow 3000 USDC , swap it for 2 ETH and deposit it as collateral.

His position is now 3 ETH collateral, 3000 USDC debt. His health factor is 1.08 (3 * 1500 * (0.9 * 0.8) / 3000)

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Last updated 8 months ago