Leveraged Fixed Yields
Last updated
Last updated
Earn amplified fixed yields by lending yield tokens on leverage and pocket the difference between the fixed yields and borrow cost. This strategy takes advantage of the yield markets for yield-bearing tokens whereby users can acquire principal tokens at a discount and hold it until maturity to realize fixed-yields.
Refer to PT Strategies for a detailed strategy explainer.
Multiply Your Fixed Yields: Lend a yield token whose value is always increasing relative to the underlying borrow token and watch your debt burden decrease over time.
Fixed Yields > Variable Borrow Rate: You will turn a profit as long as the fixed yields locked in at position creation is greater than the average borrow interest for holding the position until maturity.
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.