# Introduction to Factor

Create Anything DeFi

## Create, Distribute, & Monetize Any DeFi Strategy In Minutes

Factor is leading a revolution where anyone can access millions of strategies in a single click. How?

With Factor, anyone can mix-and-match protocols from across DeFi to create automated and permissionless strategies. Focus on creating the best strategies, no coding required. Any DeFi primitive, any actions, deployed across chains in minutes (with negligible overheads).

Combining what Lego did for creativity and what Shopify did for ecommerce, Factor is changing the way strategies are created and distributed forever.

Factor is creating DeFi’s composability layer connecting protocols, creators, and users to infinite earning opportunities.

***

## Factor Users

<figure><img src="/files/ntbIeubFBMuVHyOWpJ9b" alt=""><figcaption><p>Factor Users</p></figcaption></figure>

* **Strategy Creators:** Combine varying strategies from multiple DeFi protocols into one automated strategy using [Factor Studio](/factor-studio/factor-studio)'s mix-and-match interface.
* **Strategy Managers:** Have what it takes to consistently create successful strategies? Shorten your time to market and earn more fees by allowing users to deposit into your public strategies.
* **Depositors:** Participate in professionally-managed and community-curated strategies by depositing funds into automated strategy vaults on [Factor Discover](/factor-discover/factor-discover) to earn passive yield.
* **Developers:** Leverage the [Factor SDK](/factor-sdk/factor-sdk) to effortlessly create custom strategies directly on your app or backend without having to worry about protocol integration specifics.
* **Protocols & DAOs:** Generate permissionless protocol incentives and distribution systems with ease while benefitting from Factor's emissions voting or partnership funds.
* **Factorians:** Stake [FCTR](/governance/fctr-token) and participate in building the future of Factor while earning long term protocol incentives.

***

## Factor Solutions

<figure><img src="/files/O4mLMTA9n0jGIYeS6BRt" alt=""><figcaption><p>Factor Solutions</p></figcaption></figure>

{% hint style="success" %}
**Factor Stack**

Toggle between the tabs below for a complete overview of all the Factor Solutions and how they combine to make DeFi more accessible!
{% endhint %}

{% tabs %}
{% tab title="Products" %}

* [**Factor Studio**](/factor-studio/factor-studio)**:** One-stop platform for creating Accessible, Composable, and Efficient DeFi strategies. Factor Studio reimagines how DeFi strategies can be created and shared via creating synergies between various Factor products.
* [**Factor Discover**](/factor-discover/factor-discover): Explore and participate in a diverse array of permissionless and curated DeFi strategies. With easy access to an ever expanding pool of DeFi strategies, Factor Discover greatly simplifies the process of finding suitable opportunities based on personalized preferences and goals.
* [**Factor Building Blocks**](#factor-building-blocks)**:** Simplifying DeFi strategy creation by abstracting the complexity of comparable protocols into a single intent-based interface. Building Blocks allow users to focus on strategy creation without having to worry about the exact details of strategy implementation across protocols.
* [**Factor Adapters**](#factor-adapters)**:** Enabling Factor Studio to securely and permissionlessly interact with external DeFi protocols on-chain. Factor Adapters generalizes core financial operations by implementing protocol-specific smart contracts that interface directly with external protocol smart contracts.
* [**Factor SDK**](#factor-sdk)**:** A versatile developer toolkit packed with features to assist you in the entire journey of developing, deploying, and managing custom trading strategies on the Factor platform. Instead of manually integrating with each protocol, developers can utilize the SDK’s modular building blocks.
* [**Factor Scale**](/governance/factor-scale)**:** Stake [FCTR](/governance/fctr-token#fctr) and be eligible to vote on the distribution of weekly gauge rewards to different vaults created on Factor. Factor Scale democratizes the allocation of protocol rewards via allowing [veFCTR](/governance/fctr-token#vefctr) holders to direct protocol emissions through community voting.
* [**Factor Boost**](/governance/factor-boost)**:** Allocate any ERC20 token as additional rewards for depositors in a target strategy vault. Just select a target vault as well as a whitelisted ERC20 reward token and Factor Boost will automatically apportion the reward tokens to vault depositors.
  {% endtab %}

{% tab title="Stack" %}

<figure><img src="/files/OVQUUCFjwGNfDdFQDZm3" alt=""><figcaption><p>Factor Stack</p></figcaption></figure>
{% endtab %}
{% endtabs %}

### Security

With integrations across multiple protocols, Factor is a user-friendly and secure gateway to the rest of DeFi. All of Factor's smart contracts are audited by [PeckShield](/security/audits/peckshield) & [SourceHat](/security/audits/sourcehat) with live contracts being [actively monitored by Chainalysis](/security/security#continuous-monitoring-and-incident-response). Whether you're a protocol, treasury, builder, or individual strategist, Factor streamlines your path to financial autonomy, ensuring a seamless journey for all.

{% hint style="success" %}
Visit the [Security](/security/security) docs for more detailed info!
{% endhint %}

***

## Factor Governance

<figure><img src="/files/dI1IokEV84yWy0cYX2ke" alt=""><figcaption></figcaption></figure>

Factor is governed by the [FactorDAO](/governance/factordao), a community-owned platform that empowers [FCTR](/governance/fctr-token#fctr) token holders to participate in the governance of the protocol. By aligning protocol growth with long-term individual incentives, the [FactorDAO](/governance/factordao) places [FCTR](/governance/fctr-token#fctr) holders at the center of Factor’s future. FactorDAO consensus guides the direction of the Factor team which operates a fully remote ream with \~25 builders spread around the globe.

{% hint style="success" %}
Visit the [FactorDAO](/governance/factordao) & [FCTR Token](/governance/fctr-token) docs for more info!
{% endhint %}

***

## Factor Ecosystem

<figure><img src="/files/8lBv7icsVBVHjyX3GRen" alt=""><figcaption><p>Growing the ecosystem</p></figcaption></figure>

{% hint style="success" %}
Visit the [Factor Flywheel](/governance/factordao/factor-flywheel) to see how Factor is creating synergies for everyone!
{% endhint %}

{% hint style="info" %}
Distribution of [Arbitrum Foundation LTIPP](/governance/factor-scale/arbitrum-foundation-ltipp) was completed 05 Sep 2024.
{% endhint %}

### Partners Include

<figure><img src="/files/JDjs1ASFXsQPqVAkWPIj" alt=""><figcaption></figcaption></figure>

The full list of official partners can be found at the following link:

{% embed url="<https://factorlaunch.notion.site/74413491f17c4c2995bad59b1f88f160?v=1c0f6cbd65d14c0f83853979fac4b590>" fullWidth="false" %}

***

## Use Cases

<details>

<summary>DeFi Protocols</summary>

<img src="/files/QQULVG2jaIGxZoNb2kSb" alt="" data-size="original">

Expand your product suite and grow your ecosystem. With Factor Studio, you can:

* **Boost TVL**: Offer unique strategies that lure users, promoting a cycle of increased visibility and capital inflow.
* **Diversify Revenue**: Monetize custom strategies and structures tailored to your assets, and tap into new revenue streams through incentives.
* **Maximize Reach**: Leverage Factor's extensive network to showcase your innovations to a broader audience.
* **Governance Blackholes**: Easily launch governance blackholes to kickstart ‘wars’ and bribe markets for the protocol’s native token.

</details>

<details>

<summary>Builders</summary>

<img src="/files/B9M9Vv9mFsiOeIamk4iQ" alt="" data-size="original">

Transform your ideas into reality using Factor Studio's user-friendly interface.

* **Versatile Creation**: Studio's modular design is not limited to traditional DeFi structures; it opens up boundless possibilities, ranging from single to multi-asset yield, with or without leverage.
* **Barrier Breakdown**: Studio's intuitive interface bridges the gap between idea and execution, allowing even those without extensive coding experience to build and deploy sophisticated DeFi strategies. This paves the way for more innovative projects entering the ecosystem.
* **Speed to Market**: Accelerate the journey to MVP and beyond with Factor Studio. Speed up your development process, enabling you to swiftly launch your project and find your product-market fit.

</details>

<details>

<summary>Asset Managers/Strategists</summary>

<img src="/files/9oxIMcYLqrml2joWMnaT" alt="" data-size="original">

Leverage Factor’s infrastructure to launch new vehicles and grow TVL:

* **Customize Offerings**: Design and oversee products and strategies tailored to specific mandates, either using the interface or the SDK.
* **Defined Permissions**: Permissions can be configured to accept deposits only from pre-approved wallet addresses. This allows the implementation of regulatory processes like KYC in compliance with your jurisdiction's requirements.
* **Automated Actions**: Factor's programmatic building blocks can automate actions like portfolio rebalancing, following predefined rules and logic for seamless execution.

</details>

<details>

<summary>Depositors</summary>

Whether you are a treasury manager, on-chain fund, or an individual, Factor serves as a gateway to a vast ecosystem of tailored opportunities and projects.

* **Customized Allocation Pathways**: Every strategy has its nuances. With Factor, you have all the tools you need to select strategies that align with your specific risk parameters, objectives, and asset inclinations.
* **Efficient Exploration with Layered Filtering**: Skip the tedious deep dives and manual sifting. Factor's advanced filters quickly direct you to the most promising strategies that match your specific criteria.
* **Stay at the Forefront**: The DeFi landscape is constantly evolving. With Factor, you're always up-to-date with the latest strategies and innovations in the ecosystem.

</details>


# Quickstart

Jump Right Into The Factor Ecosystem

## Depositors

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/8cq2KznEWw1NmIrADuYL"><strong>Community Created Strategies</strong></a></td><td></td><td></td><td></td></tr><tr><td><a href="/pages/fhhyKTYRDjDb2Gsv15hk"><strong>Leverage Strategies</strong></a></td><td></td><td></td><td></td></tr><tr><td><a href="/pages/pPyWvTcwPgYewaDMhyqP"><strong>Yield Strategies (Auto-compound)</strong></a></td><td></td><td></td><td></td></tr><tr><td><a href="/pages/EzXBGSJexDotzRZjI0NP"><strong>PT User Guides</strong></a></td><td></td><td></td><td><a href="/pages/EzXBGSJexDotzRZjI0NP">/pages/EzXBGSJexDotzRZjI0NP</a></td></tr></tbody></table>

## Strategists

<table data-view="cards"><thead><tr><th></th></tr></thead><tbody><tr><td><a href="/pages/5usnqaZuLRbS1IMQOd09"><strong>Create Public Strategies</strong></a></td></tr><tr><td><a href="/pages/kZM0LZuFfDJWmlvml60g"><strong>Create Private Strategies</strong></a></td></tr></tbody></table>

## Developers

{% hint style="success" %}
**Technical Stack**

You can view the Factor tech stack [here](/#stack).
{% endhint %}

### Dev Guides

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th></tr></thead><tbody><tr><td><a href="/pages/JApaFP66z4wKl5KLuRhe"><strong>Leverage Flow</strong></a></td><td></td><td></td></tr></tbody></table>

### Tools

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/YuzvjCdIW6g3tWXnK6Rl"><strong>Factor SDK</strong></a></td><td></td><td></td><td><a href="/pages/YuzvjCdIW6g3tWXnK6Rl">/pages/YuzvjCdIW6g3tWXnK6Rl</a></td></tr><tr><td><a href="/pages/kB7LeJBeBw5OBkzvQHaE"><strong>Factor APIs</strong></a></td><td></td><td></td><td><a href="/pages/kB7LeJBeBw5OBkzvQHaE">/pages/kB7LeJBeBw5OBkzvQHaE</a></td></tr></tbody></table>

### Contracts

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/NsmKR7JdeZlv6fKouY5P"><strong>Studio Contracts</strong></a></td><td></td><td></td><td><a href="/pages/NsmKR7JdeZlv6fKouY5P">/pages/NsmKR7JdeZlv6fKouY5P</a></td></tr><tr><td><a href="/pages/zPyBaHZAKydoMZkSSTI9"><strong>Leverage Strategy Contracts</strong></a></td><td></td><td></td><td><a href="/pages/zPyBaHZAKydoMZkSSTI9">/pages/zPyBaHZAKydoMZkSSTI9</a></td></tr><tr><td><a href="/pages/CLRmeewPMjuWP9A4349e"><strong>Adapter Contracts</strong></a></td><td></td><td></td><td><a href="/pages/CLRmeewPMjuWP9A4349e">/pages/CLRmeewPMjuWP9A4349e</a></td></tr></tbody></table>

## Resources (by Strategy Type)

{% tabs %}
{% tab title="Leverage" %}

* [**Leverage Strategy Explainer**](/getting-started/strategy-explainers/leverage) -> Get an intuitive overview of the strategy
* [**Leverage Strategy Decision Tree**](/factor-discover/factor-discover/leverage-user-guides#choosing-the-right-strategy) -> Find out if this is the right strategy for you
* [**Leverage Performance Modelling**](/getting-started/strategy-explainers/leverage/leverage-performance-modelling) -> Understand how market movements affect your returns
* **Interactive Simulations** -> Experiment and find the optimal strategy parameters
  * [**Leverage Long**](/getting-started/strategy-explainers/leverage/leverage-long-simulation) -> Standard ERC20 Long Position
  * [**Leverage Short**](/getting-started/strategy-explainers/leverage/leverage-short-simulation) -> Standard ERC20 Short Position
    {% endtab %}

{% tab title="Yield" %}

* [**Yield Strategy Explainer**](/getting-started/strategy-explainers/yield) -> Get an intuitive overview of the strategy
* [**Yield Performance Modelling**](/getting-started/strategy-explainers/yield/yield-performance-modelling) -> Understand how market movements affect your returns
  {% endtab %}

{% tab title="PT" %}

* [**PT Strategy Explainer**](/getting-started/strategy-explainers/pt-strategies) -> Understand PT mechanics and strategy conditions.
* **Interactive Simulations** -> Experiment and find the optimal strategy parameters
  * [**Leverage Long PT**](/getting-started/strategy-explainers/pt-strategies/leverage-long-pt-simulation) -> Yield-bearing PT Long Position (via Pendle)
    {% endtab %}
    {% endtabs %}


# Supported Protocols

{% hint style="success" %}
**Integration Categories**

[Factor Studio](/factor-studio/factor-studio) enables strategists to create strategies spanning across multiple DeFi segments which can then be shared to depositors on [Factor Discover](/factor-discover/factor-discover).

For ease of reference, integrated protocols have been categorized according to established segments which also corresponds to the [Factor Building Blocks](/factor-building-blocks/factor-building-blocks) categories.
{% endhint %}

{% tabs %}
{% tab title="Factor Studio" %}

## Swap

* [OpenOcean](https://openocean.finance/)
* [Camelot](https://camelot.exchange/) *(coming soon)*
* [Uniswap](https://uniswap.org/) *(coming soon)*
* [Pendle](https://www.pendle.finance/) *(coming soon)*

## Lending

* [Aave](https://aave.com/)
* [Compound](https://compound.finance/)
* [Silo](https://www.silo.finance/)

## LP Management

* [Uniswap V3](https://uniswap.org/)
* [Camelot](https://camelot.exchange/)
* [Pendle](https://www.pendle.finance/) *(coming soon)*

## Flash Loan

* [Aave](https://aave.com/) *(coming soon)*
* [Balancer](https://balancer.fi/)

## Stake

* [GMX](https://gmx.io/) *(coming soon)*

## Conditional

* [Chainlink](https://chain.link/)

## Automation

* [Gelato](https://www.gelato.network/)
  {% endtab %}

{% tab title="Factor Discover" %}

## Swap

* [OpenOcean](https://openocean.finance/)
* [Trader Joe](https://www.traderjoexyz.com/)
* [Uniswap V3](https://uniswap.org/)
* [Vela Exchange](https://www.vela.exchange/)

## Lending

* [Aave](https://aave.com/)
* [Compound](https://compound.finance/)
* [Silo](https://www.silo.finance/)
* [Lodestar Finance](https://www.lodestarfinance.io/)
* [Tender.Fi](https://www.tender.fi)

## LP Management

* [Camelot](https://camelot.exchange/)
* [Uniswap V3](https://uniswap.org/)
* [Trader Joe](https://www.traderjoexyz.com/)

## Flash Loan

* [Balancer](https://balancer.fi/)

## Yield

* [Gains Network](https://gainsnetwork.io/)
* [GMX](https://gmx.io/)
* [Lodestar Finance](https://www.lodestarfinance.io/)
* [MUX Protocol](https://mux.network/#/)
* [Pendle](https://www.pendle.finance/)
* [Penpie](https://docs.penpiexyz.io/)
* [Radiant](https://radiant.capital/)
* [Umami Finance](https://umami.finance/)
* [Vela Exchange](https://www.vela.exchange/)
  {% endtab %}
  {% endtabs %}


# Strategy Cheatsheet

## Overview

This section provides [Factor Studio](/factor-studio/factor-studio) creators with the cheat codes that will give them a big advantage when facing the final boss: volatile DeFi markets. Think a cheat engine but with real rewards for beating the game. [Factor Studio](/factor-studio/factor-studio) equips you with all the tools you need to successfully execute your alpha strategies.

By providing you with various strategy examples, the Strategy Cheatsheet is meant to inspire your DeFi gameplay and take your alphas to the next level.

***

## Cheatsheet Categories

### 🔀 [Swaps](/getting-started/strategy-cheatsheet/swaps-cheatsheet)

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Conditional Market Order</strong></td><td></td><td></td><td><a href="/pages/ZGfRMlc2Sk7qnbUjmXjN">/pages/ZGfRMlc2Sk7qnbUjmXjN</a></td></tr><tr><td><strong>Automated Market Order</strong></td><td></td><td></td><td><a href="/pages/2TO52DtnPh1msE2hrI3G">/pages/2TO52DtnPh1msE2hrI3G</a></td></tr><tr><td><strong>Multi Swap</strong></td><td></td><td></td><td><a href="/pages/0X8DYEmFN0mCB33GUvac">/pages/0X8DYEmFN0mCB33GUvac</a></td></tr><tr><td><strong>Automated Swap &#x26; Earn</strong></td><td></td><td></td><td><a href="/pages/upqZahdRhZDnBHZJUM26">/pages/upqZahdRhZDnBHZJUM26</a></td></tr><tr><td><strong>Automated Scale Order</strong></td><td></td><td></td><td><a href="/pages/NSSO0hIeopMuhNhaopEE">/pages/NSSO0hIeopMuhNhaopEE</a></td></tr><tr><td><strong>Scale Order Partial Fill Yield</strong></td><td></td><td></td><td><a href="/pages/Srnudx2uC8NMHJgjEHDW">/pages/Srnudx2uC8NMHJgjEHDW</a></td></tr><tr><td><strong>Interest On Pending Trades</strong></td><td></td><td></td><td><a href="/pages/PX7WDhUTxER0mslHPZgg">/pages/PX7WDhUTxER0mslHPZgg</a></td></tr><tr><td><strong>Leverage Trade</strong></td><td></td><td></td><td><a href="/pages/JY5GCTein84nacMENStC">/pages/JY5GCTein84nacMENStC</a></td></tr><tr><td><strong>Leverage DCA</strong></td><td></td><td></td><td><a href="/pages/dnqc4PMXHY47PXAGwsbv">/pages/dnqc4PMXHY47PXAGwsbv</a></td></tr></tbody></table>

### ➡️ [Lending](/getting-started/strategy-cheatsheet/lending-cheatsheet)

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Lending Pool Zap</strong></td><td></td><td></td><td><a href="/pages/6qGzAVYw6eBOWAbwD5js">/pages/6qGzAVYw6eBOWAbwD5js</a></td></tr><tr><td><strong>Multi Lend</strong></td><td></td><td></td><td><a href="/pages/WRgcVM5LnAJjpkJdGh63">/pages/WRgcVM5LnAJjpkJdGh63</a></td></tr><tr><td><strong>Market Making To Lending Switch</strong></td><td></td><td></td><td><a href="/pages/UOXIL97LBR0uJMTyWtG6">/pages/UOXIL97LBR0uJMTyWtG6</a></td></tr><tr><td><strong>Earn Negative Interest</strong></td><td></td><td></td><td><a href="/pages/w2KFBYNxRKhtRxIJstcQ">/pages/w2KFBYNxRKhtRxIJstcQ</a></td></tr><tr><td><strong>Carry Trade</strong></td><td></td><td></td><td><a href="/pages/t48sVHFeCjOO59Yl3Gov">/pages/t48sVHFeCjOO59Yl3Gov</a></td></tr><tr><td><strong>Leveraged Staking Yields</strong></td><td></td><td></td><td><a href="/pages/bORgcbfMafQfmOROBZfw">/pages/bORgcbfMafQfmOROBZfw</a></td></tr><tr><td><strong>Leveraged Fixed Yields</strong></td><td></td><td></td><td><a href="/pages/aFdW1TSH5T1bW602wsjD">/pages/aFdW1TSH5T1bW602wsjD</a></td></tr></tbody></table>

### ⬅️ [Borrowing](/getting-started/strategy-cheatsheet/borrowing-cheatsheet)

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Collateralized Borrow</strong></td><td></td><td></td><td><a href="/pages/iRXhwrFnv8HmH2cc493j">/pages/iRXhwrFnv8HmH2cc493j</a></td></tr><tr><td><strong>Collateralized Borrow Zap</strong></td><td></td><td></td><td><a href="/pages/9wtJpsQu7BNNi1TTu50z">/pages/9wtJpsQu7BNNi1TTu50z</a></td></tr><tr><td><strong>Multi Borrow</strong></td><td></td><td></td><td><a href="/pages/WuZhRnF9wQTuX2cO0JI9">/pages/WuZhRnF9wQTuX2cO0JI9</a></td></tr><tr><td><strong>Debt Switching</strong></td><td></td><td></td><td><a href="/pages/CCd3pHWnTOSOr39brqdm">/pages/CCd3pHWnTOSOr39brqdm</a></td></tr><tr><td><strong>Automated Debt Readjustments</strong></td><td></td><td></td><td><a href="/pages/Rlh4NZ6i8Lz1q6Zvct2o">/pages/Rlh4NZ6i8Lz1q6Zvct2o</a></td></tr><tr><td><strong>Debt Refinancing</strong></td><td></td><td></td><td><a href="/pages/2dV5HfIr2NNbu3XLzXsL">/pages/2dV5HfIr2NNbu3XLzXsL</a></td></tr><tr><td><strong>Asset Switching</strong></td><td></td><td></td><td><a href="/pages/auJxSxDFWKB3Wlehgvx8">/pages/auJxSxDFWKB3Wlehgvx8</a></td></tr></tbody></table>

### 🌊 [Liquidity Provision](/getting-started/strategy-cheatsheet/liquidity-provision-cheatsheet)

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><strong>Liquidity Pool Zap</strong></td><td></td><td></td><td><a href="/pages/QIrd7NWTHSOcxnT9dRLo">/pages/QIrd7NWTHSOcxnT9dRLo</a></td></tr><tr><td><strong>Yield Farm Zap</strong></td><td></td><td></td><td><a href="/pages/XCTXypfMrtxwOqQk7gne">/pages/XCTXypfMrtxwOqQk7gne</a></td></tr><tr><td><strong>Automated LP Adjustments</strong></td><td></td><td></td><td><a href="/pages/7FJfBjtBSsz0rIucBHeD">/pages/7FJfBjtBSsz0rIucBHeD</a></td></tr><tr><td><strong>Yield Farm Adjustments</strong></td><td></td><td></td><td><a href="/pages/9LqOjZiywTXiZE7SKOr8">/pages/9LqOjZiywTXiZE7SKOr8</a></td></tr></tbody></table>

### 🪄 [Flash Loan](/getting-started/strategy-cheatsheet/flash-loan-cheatsheet)


# Swaps Cheatsheet

## Overview

Strategies which focus on profits realized through the active trading of tokens.

<figure><img src="/files/Fm6X0NZSSX8sftTE5wbf" alt=""><figcaption></figcaption></figure>

{% embed url="<https://medium.com/@FactorDAO/mix-match-automate-defi-swaps-341d1030bf31>" %}

{% hint style="info" %}
[**Swap Building Block**](/factor-building-blocks/swap)
{% endhint %}


# Conditional Market Order

## Overview

<figure><img src="/files/awz2e0hHYq2Xpv1mOpcz" alt=""><figcaption></figcaption></figure>

Swap your tokens at the market price only if your target price is reached during transaction execution.&#x20;

Your tokens are immediately swapped at the best available rates as the selected protocol dynamically reroutes your trade to more capital efficient sources.

## Potential Alpha

* **Swap At Superior Rates:** Your swaps are rerouted via more capital efficient sources resulting in deeper liquidity and better rates.
* **Additional Price Verification:** Add additional checks to your swaps that ensures your trades are only executed when the aggregated market price is equal to your target price.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* Specify your target price and condition for the swap.
  * Token purchases: Only execute the swap if `marketPrice` is ≤ `targetPrice`
  * Token sales: Only execute the swap if `marketPrice` is ≥ `targetPrice`

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Input token amount

</details>

## Example

<figure><img src="/files/jO3KrLTLH7VChN3p3h5p" alt=""><figcaption></figcaption></figure>


# Automated Market Order

## Overview

<figure><img src="/files/cVxFmN0TnUHmqXT7YLwd" alt=""><figcaption></figcaption></figure>

Automatically trigger a market order whenever your target condition is met. This can be for a single trade (conditional market order, take profit market, stop loss market), part of automated portfolio rebalancing/DCA, synthetic asset rebalancing, or even on-chain copy trading.

Your tokens are immediately swapped at the best available prices as the selected protocol dynamically reroutes your trade to more capital efficient sources.

## Potential Alpha

* **Buy Low, Sell High:** Automatically trade at your desired price and earn from any token appreciation.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your target price and condition for the swap.
  * Token purchases: Only execute the swap if `marketPrice` is ≤ `targetPrice`
  * Token sales: Only execute the swap if `marketPrice` is ≥ `targetPrice`

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Input token amount

</details>

## Example

<figure><img src="/files/jO3KrLTLH7VChN3p3h5p" alt=""><figcaption></figcaption></figure>


# Multi Swap

## Overview

<figure><img src="/files/zJoRl54dl3cXeGlzSQia" alt=""><figcaption></figcaption></figure>

Chain as many swaps as required into a single transaction. Your multiswap transaction is atomic thereby reducing your exposure to market timing and front running risks.

All tokens are immediately swapped at the best available rates as the selected protocols dynamically reroutes your trade to more capital efficient sources.

## Potential Alpha

* **All Swaps Or None:** Reduce market timing risk when sourcing multiple tokens for your strategy as all swaps are completed at your configured price with a single swap failure resulting in none of the swaps being processed.
* **Any Tokens, Any Time:** From one-to-many, many-to-many, many-to-one swaps, switch between any token required for your specific strategy with ease.
* **Access Multiple Protocols:** More protocols means more markets for combining routes for your specific input and output token.
* **Swap At Superior Rates:** Your swaps are rerouted via more capital efficient sources resulting in deeper liquidity and better rates.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Specify input token amount

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Specify input token amount

</details>

## Example

<figure><img src="/files/FRa7gSEkeahynwjpKmCu" alt=""><figcaption></figcaption></figure>


# Automated Swap & Earn

## Overview

<figure><img src="/files/BTehyUHuSjgsRMHMcJG2" alt=""><figcaption></figcaption></figure>

Trigger a swap when your target price is reached and immediately lend for supply interest.

Your tokens are swapped at the best available prices and the tokens received are added to your selected lending pool in a single transaction.

## Potential Alpha

* **Buy Low, Sell High:** Automatically trade at your desired price and earn from any token appreciation.
* **Earn Lending Interest:** Put your tokens to work and earn a supply interest by depositing it into  various lending markets.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your target price and condition for the swap.
  * Token purchases: Only execute the swap if `marketPrice` is ≤ `targetPrice`
  * Token sales: Only execute the swap if `marketPrice` is ≥ `targetPrice`

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Input token amount

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL">Lend</a></summary>

* Lend all of the swapped tokens to the selected lending pool to earn maximum supply interest.

</details>

## Example

<figure><img src="/files/WNXI07DoA3JpOU8LGnyW" alt=""><figcaption></figcaption></figure>


# Automated Scale Order

## Overview

<figure><img src="/files/zkm467yhbh9I0qzKghzC" alt=""><figcaption></figcaption></figure>

Automatically add single-sided concentrated liquidity when your target price is reached and DCA into/out of a token while earning AMM trading fees. All of your tokens are traded against as the market traverses over your selected range in a single direction. Additionally, your position also earns trading fees for any bi-directional trades that occurs within the range.

## Potential Alpha

* **Gradually Buy At Lower Prices:** Purchase tokens along a smooth price curve starting from your start price to your specified end price.
* **Gradually Sell At Higher Prices:** Sell tokens along a smooth price curve starting from your start price to your specified end price.
* **Earn From Market Spreads:** Earn additional trading fees from short term volatility within your selected range.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your trigger price and condition for when you want to enter the market
  * Token purchases: Only add liquidity if `marketPrice` is ≤ `targetPrice`
  * Token sales: Only add liquidity if `marketPrice` is ≥ `targetPrice`

</details>

<details>

<summary><a href="/pages/H6Mj9AUTJ9SuvGM0FjqG"><strong>Create LP</strong></a></summary>

* Select the token to add.
  * Token purchases: Token to add is the token to swap from.
  * Token sales: Token to add is the token to sell.
* Select the price range to add liquidity to. The selected price range will have to exclude the current market price. The narrower the range, the more liquidity that gets traded at an in-range price.
* Select the token amount.

</details>

## Example

<figure><img src="/files/RdrFv9oFlXo58wDmUQqE" alt=""><figcaption></figcaption></figure>


# Scale Order Partial Fill Yield

## Overview

<figure><img src="/files/JMWOMG2d9Rh4pguvTiR9" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Pseudo Scale Orders**

By adding single-sided concentrated liquidity, your position functions as a automated DCA into/out of a token while earning AMM trading fees. See [Automated Scale Order](/getting-started/strategy-cheatsheet/swaps-cheatsheet/automated-scale-order) for more info.
{% endhint %}

Lock in your scale order partial fills and earn supply interest on your newly acquired tokens while waiting for your remaining scale order to fill.&#x20;

This strategy requires an existing concentrated liquidity position whose price range covers the current market price (i.e. single-sided liquidity has been partially converted to double-sided liquidity).

## Potential Alpha

* **Lock In Trades:** By removing your desired token from the position and narrowing your new position price range, you ensure that the tokens can no longer be automatically traded by the AMM therefore acting as profit taking or stop loss confirmations.
* **Partial Fill Yield:** Earn a supply interest on your newly acquired tokens by depositing into a lending pool to earn yield without any impermanent loss risks.
* **Gradually Buy At Lower Prices:** Purchase tokens along a smooth price curve starting from your start price to your specified end price.
* **Gradually Sell At Higher Prices:** Sell tokens along a smooth price curve starting from your start price to your specified end price.
* **Earn From Market Spreads:** Earn additional trading fees from short term volatility within your selected range.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/H6Mj9AUTJ9SuvGM0FjqG"><strong>Remove Liquidity</strong></a></summary>

* Remove all liquidity from existing position.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Deposit the token you were trading to into the target lending pool.

</details>

<details>

<summary><a href="/pages/H6Mj9AUTJ9SuvGM0FjqG"><strong>Create LP</strong></a></summary>

* You will now be left with the remaining tokens left to trade from which can then be added to a new single sided liquidity position.
* Create a new position with a narrower range. The price range adjustment will depend on the direction of trade:
  * Buy: Min price will remain the same as the initial position's min price. Max price will decrease by the proportion of tokens already bought.
  * Sell: Min price will increase by the proportion of tokens already sold. Max price will remain the same as the initial position's max price.

</details>


# Interest On Pending Trades

## Overview

<figure><img src="/files/EwiBpEI1t5gnaherdqN7" alt=""><figcaption></figcaption></figure>

Earn supply interest on your allocated trade funds while waiting for your target price to be reached.

This strategy requires that you first have a lending position in the token that you're trading from. By lending tokens allocated to the trade, your otherwise idle tokens will be earning supply interest until the market reaches your trigger price.

Upon your target price being reached, your tokens are immediately withdrawn and the initial loan amount is immediately swapped at optimal market rates. By specifying a swap amount that is equal to the initial lending amount, any interest earned will then accrue to the strategy for the duration of the wait period.

## Potential Alpha

* **Earn Short Term Lending Interest:** Earn additional yields on otherwise idle reserved tokens while waiting for your target price to be hit.
* **Buy Low, Sell High:** Automatically trade at your desired price and earn from any token appreciation.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL">Lend</a></summary>

* Lend all tokens to trade from to the lending protocol.

</details>

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your trigger price and condition for when you want to enter the market
  * Token purchases: Only add liquidity if `marketPrice` is ≤ `targetPrice`
  * Token sales: Only add liquidity if `marketPrice` is ≥ `targetPrice`

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Withdraw</strong></a></summary>

* Withdraw all tokens in the lending pool (interest would have accrued automatically).

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the tokens to swap
  * Token purchases: Input token is the token to swap from and output token is the target token.
  * Token sales: Input token is the token to sell and output token is the token to receive.
* Choose an input token amount that is equal to the initial lending amount. Remaining interest remains in the strategy.

</details>

## Example

<figure><img src="/files/jV2bka32KHoVxIpRCENr" alt=""><figcaption></figcaption></figure>


# Leverage Trade

## Overview

<figure><img src="/files/CSm8jdyJidc10M8J8RZY" alt=""><figcaption></figcaption></figure>

Create leveraged long or short strategies giving you greater exposure to potential upside and enabling downside speculation. This strategy enables users to benefit from the differences between the cost of borrowing and the expected profit generated from the borrowed liquidity.

{% hint style="info" %}
[**Leverage Strategy Explainer**](/getting-started/strategy-explainers/leverage)
{% endhint %}

## Potential Alpha

* **Multiply Your Gains:** Get access to more liquidity thereby increasing your capital efficiency through leverage.
* **Offset Borrowing Costs:** Collateralize tokens with higher supply interest and you can even cover your borrow costs plus more.
* **Amplify Native Yields:** Take advantage of tokens with native yield as your collateral value rises relative to your debt value.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Create a flash loan for the asset token.
  * Longs: Asset token is the token which you are bullish on.
  * Shorts: Asset token is a stable token with debt being the token you are bearish on.
* The amount that you can flash loan will be dependent on the maximum collateralization ratio for your selected lending pool (i.e. $$\text{collatRatio}=\frac{value\_\text{flashLoan}}{value\_\text{initiaclCollateral}+value\_\text{flashLoan}}$$ ).
* If there is no existing flash loan market for either your asset token, you will have to add an additional [Swap Building Block](/factor-building-blocks/swap) per below.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* This is an optional block in the case where there is no flash loan market for your asset token.
* Swap the flash loaned token for your target asset token.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Add the newly acquired asset tokens to the target lending pool as collateral.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Borrow the flash loan debt amount.
* If the debt and flash loan token differs, you will need to add an additional swap step per below.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap the debt token for the flash loan token.
* The flash loan debt will be automatically deducted from your strategy.

</details>

## Example

<figure><img src="/files/DmQ8cTJNcS706pqlZeX3" alt=""><figcaption></figcaption></figure>


# Leverage DCA

## Overview

<figure><img src="/files/TnlLGekBY3qHsdiRuO86" alt=""><figcaption></figcaption></figure>

Amplify your gains with leveraged trading with gradual buy/sells. This strategy enables users to automatically benefit from the differences between the cost of borrowing and the expected profit generated from the borrowed liquidity.

## Potential Alpha

* **Multiply Your Gains:** Get access to more liquidity thereby increasing your capital efficiency through leverage.
* **Gradually Buy At Lower Prices:** Purchase tokens along a smooth price curve starting from your start price to your specified end price. Every trade covers a larger proportion of your debt.
* **Gradually Sell At Higher Prices:** Sell tokens along a smooth price curve starting from your start price to your specified end price. Every trade covers a larger proportion of your debt.
* **Earn From Market Spreads:** Earn additional trading fees from short term volatility within your selected range.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Longs (upside speculation)
  * Lend the token you are bullish on to the specified lending pool.
* Shorts (downside speculation)
  * Lend stable tokens to the specified lending pool.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Longs (upside speculation)
  * Borrow stables against your collateral.
* Shorts (downside speculation)
  * Borrow the tokens you are bearish on.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Longs (upside speculation)
  * Swap the acquired stables for more bullish tokens.
* Shorts (downside speculation)
  * Swap the acquired debt tokens for more stables.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Create LP</strong></a></summary>

* Create a single-sided concentrated liquidity position for the token pair.
  * Longs: Add all the bullish token to a range above the current market price.
  * Shorts: Add all the stables to a range below the current market price.

</details>

## Example

<figure><img src="/files/2WzN1PynRMLCd9HA0V8X" alt=""><figcaption></figcaption></figure>


# Lending Cheatsheet

## Overview

Strategies which focus on generating yield through the lending of tokens for supply interest.

<figure><img src="/files/KRKBfyaJq0eE7Dqj9jST" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
[**Lend Building Block**](/factor-building-blocks/lend)
{% endhint %}


# Lending Pool Zap

## Overview

<figure><img src="/files/R0BkD49cFKBl0Nn3Se7N" alt=""><figcaption></figcaption></figure>

Immediately earn supply interest upon swapping for the lending token in a single transaction.&#x20;

Your tokens are immediately swapped at the best available rates as the selected protocol dynamically reroutes your trade to more capital efficient sources. This ensures you can maximize the amount of tokens lent and earn more supply interest.

## Potential Alpha

* **Maximize Supply Interest:** Not a single second is wasted as your newly acquired tokens are immediately added to the lending pool to earn interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the token to zap from.
* Input token amount.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend all of the output tokens from the swap.

</details>

## Example

<figure><img src="/files/TNKqZZvNfPKjfxaEpkN2" alt=""><figcaption></figcaption></figure>


# Multi Lend

## Overview

<figure><img src="/files/kbevv2FssGG1j6mLHX3q" alt=""><figcaption></figcaption></figure>

Diversify your lending interest and get access to more lending markets in a single strategy. Chain as many lending blocks as needed to create complex multi-token strategies with varied lending yields.

## Potential Alpha

* **Diversify Token Supply Interest:** Spread your single token deposit into multiple lending markets and diversify your supply interest and market risks.
* **Diversify Strategy Supply Interest:** Deposit various tokens into different markets and diversify your lending interest.
* **Maximize Supply Interest:** Not a single second is wasted as your tokens are immediately added to the target lending pools to earn interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend one of the tokens in the multi-token strategy to a selected lending pool.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend another of the tokens in the multi-token strategy to a selected lending pool.

</details>

## Example

<figure><img src="/files/3gk6Y9l1gkJSP1sfUHi4" alt=""><figcaption></figcaption></figure>


# Market Making To Lending Switch

## Overview

<figure><img src="/files/AJPbcgLIucuVEmiJO9Lp" alt=""><figcaption></figcaption></figure>

Migrate from market making to lending markets in a single transaction and start earning leding interest immediately without IL risks.

If you want to maintain exposure to both tokens but believe there is a high chance that impermanent loss might become permanent for your target time period, you can migrate to lending instead and earn yields while eliminating IL risks completely.

Alternatively, if market spreads are negligible for your target time period, you might stand to earn more yields by lending your tokens instead of continuing to market make.

## Potential Alpha

* **Lending Market Outperformance:** Earn more yields if the average supply interest across both tokens is consistently above the trading fees from depositing into an AMM.
* **HODL With Yield:** Eliminate impermanent loss risks while still earning supply interest on your holdings. HODL with yield.
* **Maximize Supply Interest:** Not a single second is wasted as your tokens are immediately added to the target lending pools to earn interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/H6Mj9AUTJ9SuvGM0FjqG"><strong>Remove Liquidity</strong></a></summary>

* Remove all liquidity from existing position.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend one of the tokens (`tokenA`/`token0`) to a selected lending pool.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend the other token (`tokenB`/`token1`) to a selected lending pool.

</details>


# Earn Negative Interest

## Overview

<figure><img src="/files/ZaEbyGULpUwB4kKZMcNN" alt=""><figcaption></figcaption></figure>

Take out a collateralized loan whenever there is negative interest and get paid to borrow.

This strategy requires that you first have a lending position which can function as the collateral for your borrow. By lending tokens, you also earn any supply interest,

By automating checks for negative borrow interest conditions, your strategy can automatically trigger a borrow whenever borrow rates for your lending market is negative. You can borrow up to the maximum [collateralization ratio](/getting-started/glossary#collateralisation-ratio) but pay attention to the [health factor](/getting-started/glossary#health-factor) of your position to avoid forced liquidations.

## Potential Alpha

* **Get Paid To Borrow:** Get access to more liquidity and generate even more yield whenever a borrow market becomes under-utilized.
* **Leverage Borrow Incentives:** Take advantage of liquidity incentives provided to various borrow markets and earn yield for borrowing tokens.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL">Lend</a></summary>

* Lend all tokens to the lending protocol.

</details>

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify the negative borrow interest condition.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Borrow an amount up to the collateralization ratio.

</details>


# Carry Trade

## Overview

<figure><img src="/files/7WUkNBCLMVfpooSbNdD4" alt=""><figcaption></figcaption></figure>

Pocket the interest difference between two lending markets by creating a carry trade. Carry trade opportunities arise when the interest charged on borrows is lower than the supply interest on another market.

While carry trades can be created between varying token lending markets by swapping the borrowed tokens, this also introduces the risk of token price divergences. Due to generally lower carry trade interest differentials, it is recommended that the borrow and lending token is the same. Note that there might also be price fluctuation risks between the collateralized token and borrow token as well.

## Potential Alpha

* **Earn Yield Differentials:** Pocket the interest difference between various lending markets by borrowing low and lending high.
* **Debt vs Asset Divergence:** Borrow stables and lend out a bullish token to increase your asset to debt ratio. Alternatively lend stables and borrow a bearish token to reduce your debt burden.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend initial collateral amount to earn supply interest.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Borrow the token where there is an interest differential between markets.
* Alternatively, borrow token with very low interest.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* In cases where the borrow token differs from the target lend token, swap all of the borrowed token for the target token.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend all of the output tokens from the swap.

</details>

## Example

<figure><img src="/files/wUKba96O0Yd6hknm3vCj" alt=""><figcaption></figcaption></figure>


# Leveraged Staking Yields

## Overview

<figure><img src="/files/isjJNnTfUwNZisGOT4wV" alt=""><figcaption></figcaption></figure>

Gain leveraged staking yield exposure by borrowing against your staking tokens. By borrowing base tokens against your yield-bearing tokens, you get safe access to leveraged staking yields.

## Potential Alpha

* **Staking Yield Amplification:** Earn multiple of your initial staking token yield amount as long as the average staking yield is greater than the incurred debt.
* **Decreasing Debt Burden:** Lend yield bearing staking tokens and borrow base tokens to open a position where collateral value is always rising relative to debt.
* **Earn Additional Interest:** In addition from your staking token growing in value, you will also receive lending pool supply interest by charging borrowers of your tokens a borrow interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan an intermediary token.
* The amount that you can flash loan will be dependent on the maximum collateralization ratio for your selected lending pool (i.e. $$\text{collatRatio}=\frac{value\_\text{flashLoan}}{value\_\text{initiaclCollateral}+value\_\text{flashLoan}}$$ ).&#x20;

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap the flash loaned token for staking tokens.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend all available staking tokens to the target lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Borrow the flash loan debt amount denominated in underlying token. This ensures that your asset value is always increasing relative to debt.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap the acquired debt tokens for the flash loan token.
* The flash loan debt will be automatically deducted from your strategy.

</details>

## Example

<figure><img src="/files/V3DjHyvMwdRlPde4rG46" alt=""><figcaption></figcaption></figure>


# Leveraged Fixed Yields

## Overview

<figure><img src="/files/j46GllbWpGQdQTu9a1Mx" alt=""><figcaption></figcaption></figure>

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](/getting-started/strategy-explainers/pt-strategies) for a detailed strategy explainer.

## Potential Alpha

* **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.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan the debt token.
* The amount that you can flash loan will be dependent on the maximum collateralization ratio for your selected lending pool (i.e. $$\text{collatRatio}=\frac{value\_\text{flashLoan}}{value\_\text{initiaclCollateral}+value\_\text{flashLoan}}$$ ).&#x20;

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap the flash loaned token for more of the initial token.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap all of the acquired tokens for Principal Tokens.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Provide Liquidity</strong></a></summary>

* Add Principal Tokens to the `Token:Principal Token` pool&#x20;

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend additional LP tokens to the selected lending pool.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Borrow the flash loan debt amount.
* The flash loan debt will be automatically deducted from your strategy.

</details>


# Borrowing Cheatsheet

## Overview

Strategies that focus on increasing the available capital through borrowing tokens.

<figure><img src="/files/emH6QCjRnXgONXC32NQ2" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
[**Borrow Building Block**](/factor-building-blocks/borrow)
{% endhint %}


# Collateralized Borrow

## Overview

<figure><img src="/files/5I8fnWKzsZzg35aOHko6" alt=""><figcaption></figcaption></figure>

Borrow against your collateralized tokens in a single transaction. You earn supply interest on the token lent while being charged a borrow interest on the token borrowed. Collateralized borrows enable you to source more liquidity for your strategy while maintaining full exposure to your collateral.

The maximum amount that you can borrow is determined by the [collateralization ratio](/getting-started/glossary#collateralisation-ratio) of the underlying lending pool. Please pay attention to the [health factor](/getting-started/glossary#health-factor) of your position when borrowing to ensure that you do not lose funds through forced liquidations. Your position can be liquidated if the value of your debt exceeds the collateral value.

## Potential Alpha

* **Access More Capital:** Get access to more liquidity while maintaining full exposure to your asset token plus added supply interest.
* **Benefit From Price Divergence:** Lend a bullish token and borrow stables or lend stables and borrow a bearish token to reduce your debt burden.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend tokens to the target lending market.
* The tokens which you can borrow will be determined by the underlying lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the token to borrow.
* Input a borrow amount which includes a buffer for any price fluctuations.

</details>

## Example

<figure><img src="/files/IBesm4zxjYv4jo6iwATm" alt=""><figcaption></figcaption></figure>


# Collateralized Borrow Zap

## Overview

<figure><img src="/files/M0B8sviJfymD7VAtEjy0" alt=""><figcaption></figcaption></figure>

Use any token to enter a lending market and take out a collateralized loan in a single transaction. Collateralized borrows enable you to source more liquidity for your strategy while maintaining full exposure to your collateral.

Your tokens are immediately swapped at the best available rates and added to the lending pool to earn supply interest. By collateralizing the asset lent, you can also take out a loan which incurs a borrow interest.

The maximum amount that you can borrow is determined by the [collateralization ratio](/getting-started/glossary#collateralisation-ratio) of the underlying lending pool. Please pay attention to the [health factor](/getting-started/glossary#health-factor) of your position when borrowing to ensure that you do not lose funds through forced liquidations. Your position can be liquidated if the value of your debt exceeds the collateral value.

## Potential Alpha

* **Access More Capital:** Get access to more liquidity while maintaining full exposure to your asset token plus added supply interest.
* **Benefit From Price Divergence:** Lend a bullish token and borrow stables or lend stables and borrow a bearish token to reduce your debt burden.
* **Maximize Supply Interest:** Not a single second is wasted as your newly acquired tokens are immediately added to the lending pool to earn interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the token to swap from.
* Input the token amount.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend the output tokens from the swap to the target lending market.
* The tokens which you can borrow will be determined by the underlying lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the token to borrow.
* Input a borrow amount which includes a buffer for any price fluctuations.

</details>

## Example

<figure><img src="/files/AF4geHkg93a2eYz67pMk" alt=""><figcaption></figcaption></figure>


# Multi Borrow

## Overview

<figure><img src="/files/AocuKki86jl1m39UnCWd" alt=""><figcaption></figcaption></figure>

Borrow as many different tokens as needed against newly added collateral in a single transaction. Diversify your borrow interest and get access to more borrowing markets in a single multi-token strategy.

## Potential Alpha

* **Diversify Token Borrow Interest:** Spread your single token borrows into multiple markets and diversify your borrow interest and market risks.
* **Diversify Strategy Borrow Interest:** Borrow various tokens from different markets and diversify your borrow interest.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend the asset token to the target lending pool.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the token to borrow.
* Input a borrow amount which includes a buffer for any price fluctuations. This includes the value of any remaining borrows utilizing the same collateral.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select another token to borrow.
* Input a borrow amount which includes a buffer for any price fluctuations. This includes the value of any remaining borrows utilizing the same collateral.

</details>

## Example

<figure><img src="/files/lHg1lsosIx44b9ySRNPU" alt=""><figcaption></figcaption></figure>


# Debt Switching

## Overview

<figure><img src="/files/UrCFu0KEU1TS2s1L98gO" alt=""><figcaption></figcaption></figure>

Switch your debt token for an existing loan in a single transaction. This strategy provides you with the opportunity to benefit from lower borrow interest or relative devaluation of the newly borrowed token.

By utilizing a [flash loan](/factor-building-blocks/flash-loan/concepts/flash-loan),  you can easily switch your debt without having to source the required capital to repay your initial loan. Depending on the flash loan token available, you might need to add additional swap blocks to account in differences between tokens that are flash loaned, repaid, and borrowed. Your tokens are immediately swapped at the best available rates ensuring minimal slippage when switching your debt.

The maximum amount that you can borrow is determined by the [collateralization ratio](/getting-started/glossary#collateralisation-ratio) of the underlying lending pool. Please pay attention to the [health factor](/getting-started/glossary#health-factor) of your position when borrowing to ensure that you do not lose funds through forced liquidations. Your position can be liquidated if the value of your debt exceeds the collateral value.

## Potential Alpha

* **Borrow At Lower Rates:** Pay less borrow interest on your existing loans by consistently switching between various debt tokens.
* **Benefit From Price Divergence:** Switch your debt to a more bearish token and reduce your debt burden as debt token price drops.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan the debt token to be repaid in full.
* If there is no flash loan market for your debt token, you will need to add a Swap Building Block and flash loan the value of your debt to be swapped.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Repay</strong></a></summary>

* Repay the full amount of debt owed.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the new debt token.
* Input a borrow amount which includes a buffer for any price fluctuations.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* If the new debt token is different from the flash loan token, initiate a swap to exchange all of the newly borrowed tokens for flash loan tokens.

</details>

## Example

<figure><img src="/files/XGKAfT5HwepRtOxyaFIN" alt=""><figcaption></figcaption></figure>


# Automated Debt Readjustments

## Overview

<figure><img src="/files/X5DEhF5bJ7brP1ZKoMWR" alt=""><figcaption></figcaption></figure>

Prevent your borrow positions from being forced liquidated by automatically repaying a portion of accrued debt whenever your position approaches the [liquidation threshold](/getting-started/glossary#liquidation-price). By utilizing a flash loan for debt repayment, you do not need to set aside reserved capital and can easily pay down your debt through partial sales of your collateral.

This strategy requires an existing borrow position to be opened whereupon your automated strategy will monitor the position's health.&#x20;

## Potential Alpha

* **Automated Liquidation Protection:** Reduce the likelihood of your position being forced liquidated by selling some asset token to reduce the debt burden.
* **No Upfront Capital Required:** With flash loans, your otherwise idle tokens reserved for repayment can be freed for other yield generating activities, maximizing your capital efficiency.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend tokens to the target lending market.
* The tokens which you can borrow will be determined by the underlying lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the token to borrow.
* Input a borrow amount which includes a buffer for any price fluctuations.

</details>

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your target price where your position becomes at risk of being undercollateralized (i.e. collateral value < debt value). Remember to leave a buffer in cases of extreme volatility.

</details>

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan the debt token to be partially repaid. The amount to loan will be dependent on the target [health factor](/getting-started/glossary#health-factor) after adjustments.
* If there is no flash loan market for your debt token, you will need to add a Swap Building Block and flash loan the value of your debt to be swapped.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Repay</strong></a></summary>

* Repay a portion of your debt position.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Withdraw</strong></a></summary>

* Withdraw the value of your flash loan from your collateral.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Swap the withdrawn collateral for the flash loan token.
* The flash loan debt is automatically credited from your strategy.

</details>

## Example

<figure><img src="/files/G9sBwWmQW3KmuyOjS5m2" alt=""><figcaption></figcaption></figure>


# Debt Refinancing

## Overview

<figure><img src="/files/abw2CzBTG80uv9Cwyep3" alt=""><figcaption></figcaption></figure>

Switch your lending provider to take advantage of favourable borrow rates in a single transaction. This strategy assumes you have an existing borrow position.

By utilizing a [flash loan](/factor-building-blocks/flash-loan/concepts/flash-loan), you can easily refinance your borrow position without having to source the required capital to repay your initial loan. Depending on the flash loan token available, you might need to add additional swap blocks to account in differences between tokens that are flash loaned, repaid, and borrowed. Your tokens are immediately swapped at the best available rates ensuring minimal slippage when switching lending providers.

## Potential Alpha

* **Borrow At Lower Rates:** Pay less borrow interest on your existing loans by consistently switching loan providers and lending markets.
* **No Upfront Capital Required:** With flash loans, your otherwise idle tokens reserved for repayment can be freed for other yield generating activities, maximizing your capital efficiency.
* **Save Time, Minimize Risks:** By completing the whole process in a single transaction, you not only save yourself time but also reduce your exposure to market volatility risks.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan the debt token to be repaid in full.
* If there is no flash loan market for your debt token, you will need to add a [Swap Building Block](/factor-building-blocks/swap) and flash loan the value of your debt to be swapped.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Repay</strong></a></summary>

* Repay the full amount of debt owed.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Withdraw</strong></a></summary>

* Withdraw all of your collateral token from the lending pool.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend all of the withdrawn tokens to the target lending market.
* The tokens which you can borrow will be determined by the underlying lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the new debt token.
* Input a borrow amount which deducts the accrued interest from previous position and includes an additional buffer for any price fluctuations.
* If your flash loan token differs from the new debt token, add an additional [Swap Building Block](/factor-building-blocks/swap) to exchange borrowed tokens for flash loan tokens.

</details>

## Example

<figure><img src="/files/0BDtWnvGNwlv9McJWq94" alt=""><figcaption></figcaption></figure>


# Asset Switching

## Overview

<figure><img src="/files/O5ZFdnfiTF8hZVNr0Urg" alt=""><figcaption></figcaption></figure>

Switch the lending provider or collateral token underlying your borrow position in a single transaction. This strategy provides you with the opportunity to benefit from higher supply interest across lending markets or the relative price increase of the new collateral token. This strategy assumes you have an existing borrow position.

By utilizing a [flash loan](/factor-building-blocks/flash-loan/concepts/flash-loan), you can easily asset switch without having to source the required capital to repay your initial loan. Depending on the flash loan token available, you might need to add additional swap blocks to account in differences between tokens that are flash loaned, repaid, and borrowed. Your tokens are immediately swapped at the best available rates ensuring minimal slippage when asset switching.

## Potential Alpha

* **Lend At Higher Rates:** Earn more supply interest by consistently switching loan providers and lending markets.
* **Asset Directional Bets:** Switch to an asset which has greater price appreciation potential and watch as your collateral value grows.
* **No Upfront Capital Required:** With flash loans, your otherwise idle tokens reserved for repayment can be freed for other yield generating activities, maximizing your capital efficiency.
* **Save Time, Minimize Risks:** By completing the whole process in a single transaction, you not only save yourself time but also reduce your exposure to market volatility risks.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/yHg2p2ZbqXqcEGFI8Qcu"><strong>Flash Loan</strong></a></summary>

* Flash loan the debt token to be repaid in full.
* If there is no flash loan market for your debt token, you will need to add a [Swap Building Block](/factor-building-blocks/swap) and flash loan the value of your debt to be swapped.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Repay</strong></a></summary>

* Repay the full amount of debt owed.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Withdraw</strong></a></summary>

* Withdraw all of your collateral token from the lending pool.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc"><strong>Swap</strong></a></summary>

* Exchange all of your withdrawn collateral token for the new target collateral token.

</details>

<details>

<summary><a href="/pages/UepWg5Va5ZlHwg1pZWqL"><strong>Lend</strong></a></summary>

* Lend all of the newly swapped collateral tokens to the target lending market.
* The tokens which you can borrow will be determined by the underlying lending market.

</details>

<details>

<summary><a href="/pages/E6WYYQYrQQUDQZyOmLrT"><strong>Borrow</strong></a></summary>

* Select the new debt token.
* Input a borrow amount which deducts the accrued interest from previous position and includes an additional buffer for any price fluctuations.
* If your flash loan token differs from the new debt token, add an additional [Swap Building Block](/factor-building-blocks/swap) to exchange borrowed tokens for flash loan tokens.

</details>

## Example

<figure><img src="/files/xRIDKa415Cx9WKM0uEkD" alt=""><figcaption></figcaption></figure>


# Liquidity Provision Cheatsheet

## Overview

Strategies which focus on generating yield through getting trading fees from AMM DEXs.

<figure><img src="/files/AawgYTU6aDhrYBeLaztM" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
[**LP Management Building Block**](/factor-building-blocks/lp-management)
{% endhint %}


# Liquidity Pool Zap

## Overview

<figure><img src="/files/TWJmM2kvOEg7GRAY59k7" alt=""><figcaption></figcaption></figure>

Add double-sided liquidity to AMM DEXs with just a single token and start earning market making fees, all in a single transaction. The [LP Management Building Block](/factor-building-blocks/lp-management) also supports management of concentrated liquidity positions in addition to the standard AMM implementation.

Your tokens are immediately swapped at the best available rates as the selected protocol dynamically reroutes your trade to more capital efficient sources.

## Potential Alpha

* **Start Earning Immediately:** Abstract away the complexities of liquidity provision and start earning trading fees with a single transaction.
* **Minimize Risks & Overheads:** Reduce the amount of time required to create a position while simultaneously eliminating any market volatility risks during the position adjustment process.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the token to swap from based on the target pool. If the target pool tokens are different from your current token, you will have to add an additional [Swap Building Block ](/factor-building-blocks/swap)to acquire all the pool tokens.
* Input token amount. The ratio of tokens required will be dependent on your target pool as well as the price range which you are providing liquidity to.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Create LP</strong></a></summary>

* Create a concentrated liquidity position for the token pair.
* Select the target pool.
* Adjust the price range to provide liquidity to.
* Add the required ratio of tokens.

</details>


# Yield Farm Zap

## Overview

<figure><img src="/files/e9Ttaa5FWzpG6H1LzOrH" alt=""><figcaption></figcaption></figure>

[Zap into any liquidity pool](/getting-started/strategy-cheatsheet/liquidity-provision-cheatsheet/liquidity-pool-zap) and immediately stake your liquidity to start earning yield farming rewards. Earn additional rewards or incentives for committing liquidity long term to staking protocols. The [LP Management Building Block](/factor-building-blocks/lp-management) also supports management of concentrated liquidity positions in addition to the standard AMM implementation.

Your tokens are immediately swapped at the best available rates and staked to earn yield farming rewards.

## Potential Alpha

* **Start Earning Immediately:** Abstract away the complexities of participating in yield farms and start earning trading fees and liquidity rewards in record time.
* **Minimize Risks & Overheads:** Reduce the amount of time required to create a position while simultaneously eliminating any market volatility risks during the position adjustment process.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Select the token to swap from based on the target pool. If the target pool tokens are different from your current token, you will have to add an additional [Swap Building Block ](/factor-building-blocks/swap)to acquire all the pool tokens.
* Input token amount. The ratio of tokens required will be dependent on your target pool as well as the price range which you are providing liquidity to.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Create LP</strong></a></summary>

* Create a concentrated liquidity position for the token pair.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Add Liquidity</strong></a></summary>

* Select the target pool.
* Add the required ratio of tokens.

</details>

<details>

<summary><a href="/pages/TZjddV1CqxcIB0JHTzz5"><strong>Stake</strong></a></summary>

* Stake your liquidity position.

</details>


# Automated LP Adjustments

## Overview

<figure><img src="/files/tnAr9KmZuXh5RwQFJrZq" alt=""><figcaption></figcaption></figure>

Automatically adjust your AMM LP position according to market conditions to continue earning trading fees or dynamically adjust spreads. The [LP Management Building Block](/factor-building-blocks/lp-management) also supports management of concentrated liquidity positions in addition to the standard AMM implementation.

This strategy requires an existing LP position to be opened. If your market conditions are met, all of the liquidity from your existing LP position is withdrawn and a new position is opened with varying parameters and token ratios. LP position parameters can be defined based on your market making goals, whether it's to adjust token ratios, liquidity price ranges, or even liquidity pool fee tiers.

For any adjustments of token ratios to meet LP deposit requirements, your tokens are swapped at the best available rates and immediately added to the new LP position to generate fees.

## Potential Alpha

* **Non Stop Yields:** Automate position adjustments to ensure that your position is always in range and earning trading fees and any liquidity incentives.
* **Minimize Risks & Overheads:** Reduce the amount of time required to create a position while simultaneously eliminating any market volatility risks during the position adjustment process.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

{% hint style="info" %}
[**Automated Strategy**](/factor-studio/factor-studio/automated-strategies)

This is an automated strategy whereby you can configure a time-based one-time/recurring trigger for your strategy.&#x20;
{% endhint %}

<details>

<summary><a href="/pages/2DoafHT21Q5bdLGON2Mz">IF Conditional</a></summary>

* This condition will be checked each time this strategy is executed by the automation feature.
* Specify your target market condition for when to adjust your LP position.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Withdraw Liquidity</strong></a></summary>

* Remove all liquidity from the existing LP position.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Depending on the parameters of your new position, swap between pool tokens to get the ratio of tokens required.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Create LP</strong></a></summary>

* Create a concentrated liquidity position for the token pair.
* Select the target pool.
* Adjust the price range to provide liquidity to.
* Add the required ratio of tokens.

</details>


# Yield Farm Adjustments

## Overview

<figure><img src="/files/LNaXjiIytxmegx2w0Zbe" alt=""><figcaption></figcaption></figure>

Maximize your yield farming rewards by adjusting your staked position in a single transaction. With this strategy, your LP position continues to earn staking rewards without missing a single block.&#x20;

This strategy requires an existing staked LP position. You can easily exit your current staked LP position and create a new staked LP position with varying parameters and token ratios. LP position parameters can be defined based on your market making goals, whether it's to adjust token ratios, liquidity price ranges, or even liquidity pool fee tiers.

For any adjustments of token ratios to meet LP deposit requirements, your tokens are immediately swapped at the best available rates and staked to earn yield farming rewards.

## Potential Alpha

* **Non Stop Yields:** Automate position adjustments to ensure that your position is always in range and earning trading fees and any liquidity incentives.
* **Minimize Risks & Overheads:** Reduce the amount of time required to create a position while simultaneously eliminating any market volatility risks during the position adjustment process.

## Strategy Building Blocks

{% hint style="success" %}
The building block order mirrors the Factor Studio UI and can be expanded for further strategy details and parameters.
{% endhint %}

<details>

<summary><a href="/pages/q1F6BeoUBUvob3fi9OmD"><strong>Unstake</strong></a></summary>

* Unstake your existing LP position.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Remove Liquidity</strong></a></summary>

* Remove all liquidity from the existing LP position.

</details>

<details>

<summary><a href="/pages/8ObgSjNh6pntp9BtqQIc">Swap</a></summary>

* Depending on the parameters of your new position, swap between pool tokens to get the ratio of tokens required.

</details>

<details>

<summary><a href="/pages/BaAYn6eNCZMmd14SjfMu"><strong>Create LP</strong></a></summary>

* Create a concentrated liquidity position for the token pair.
* Select the target pool.
* Adjust the price range to provide liquidity to.
* Add the required ratio of tokens.

</details>

<details>

<summary><a href="/pages/TZjddV1CqxcIB0JHTzz5"><strong>Stake</strong></a></summary>

* Stake your new LP position.

</details>


# Flash Loan Cheatsheet

## Overview

Strategies that utilizes flash loans to get access to uncollateralized short term liquidity.

<figure><img src="/files/r2p8qkOAiyzWxNuK6ivh" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
[**Flash Loan Building Block**](/factor-building-blocks/flash-loan)
{% endhint %}


# Strategy Explainers

This section provides users with a simple but comprehensive overview of various DeFi strategies available on Factor. Each strategy explainer enables you to gain an intuitive understanding of the strategy's inner workings thereby allowing you to envision how the various tools can be beneficial to your DeFi arsenal.&#x20;

You can even experiment with our strategy simulations and extrapolate your strategy performance with interactive sheets created for each strategy type.

The [Factor dapp](https://app.factor.fi/discover) abstracts all the complexities of strategy implementation and allows you to just focus on fine-tuning the parameters that best suits your DeFi goals.

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/0VqMJIGITvE3kfR2kuCn"><strong>Leverage</strong></a></td><td></td><td></td><td><a href="/pages/0VqMJIGITvE3kfR2kuCn">/pages/0VqMJIGITvE3kfR2kuCn</a></td></tr><tr><td><a href="/pages/HktBZk0Pvw7VavjLfBd0"><strong>Yield</strong></a></td><td></td><td></td><td><a href="/pages/HktBZk0Pvw7VavjLfBd0">/pages/HktBZk0Pvw7VavjLfBd0</a></td></tr></tbody></table>


# Leverage

## Overview

The Factor leverage strategy enables users to benefit from the differences between the cost of borrowing and the expected profit generated from the borrowed liquidity. Put simply, one-click on the Factor dApp enables you to **access multiple times your initial capital value** (the maximum leverage is determined by the underlying lending pool). Leveraged positions opens a borrow position against your collateralized assets to enable access to further liquidity.

[Factor Studio](https://docs.factor.fi/factor-studio/factor-studio) combines multiple DeFi primitives into a single leverage transaction to enable the creation of leverage on DeFi positions:

1. Supply initial <mark style="color:green;">asset</mark> token to lending protocol (i.e. Silo, Aave, etc.)
2. Flash loan <mark style="color:red;">debt</mark> token from Balancer
3. Swap flash loaned <mark style="color:red;">debt</mark> token for <mark style="color:green;">asset</mark> token on OpenOcean
4. Add swapped <mark style="color:green;">asset</mark> token to lending protocol
5. Borrow <mark style="color:red;">debt</mark> token from lending protocol to repay flash loan from Balancer
6. Repay Balancer flash loan using borrowed <mark style="color:red;">debt</mark> token

Note that the flash loaned value is added to the position's collateral as <mark style="color:green;">asset</mark> token while the position incurs interest payments on the <mark style="color:red;">debt</mark> token equalling the flash loaned value.&#x20;

{% hint style="info" %}
**Liquidation Thresholds**

Lending protocols each define their own [collateralization ratio](/getting-started/glossary#collateralisation-ratio) that dictates the maximum value of debt tokens that can be borrowed relative to the value of the collateralized asset tokens.

While this ensures the solvency of the protocol, this means that leveraged positions are liable to being liquidated once it becomes undercollateralized. The Factor dApp enables you to track key liquidation threshold metrics such as the position's [Health Factor ](/getting-started/glossary#health-factor)as well as the projected [Liquidation Price](/getting-started/glossary#liquidation-price).&#x20;

As crypto markets can be volatile, please pay particular attention to the liquidation thresholds and provide additional buffers to keep your funds safe.
{% endhint %}

<details>

<summary>Related Concepts</summary>

* [Collateralized Lending & Borrowing](/factor-building-blocks/leverage/concepts/collateralized-lending-and-borrowing) -> Borrowing <mark style="color:red;">debt</mark> token from lending protocols by collateralizing <mark style="color:green;">asset</mark> token.
* [Flash Loan](/factor-building-blocks/flash-loan/concepts/flash-loan) -> Uncollateralized lending that enables the creation of leverage.
* [Market Orders ](/factor-building-blocks/swap/concepts/market-orders)-> Instant swaps of tokens on Decentralized Exchanges.

</details>

{% hint style="success" %}
**Strategy Performance & Simulations**

The interactive sheets below are meant help you gain an intuition of the potential strategy returns. Choose your tokens, add your strategy parameters, and see how Factor leverage strategies simplifies your DeFi journey.

* [Leverage Performance Modelling](/getting-started/strategy-explainers/leverage/leverage-performance-modelling)
* [Leverage Long Simulation](/getting-started/strategy-explainers/leverage/leverage-long-simulation)
* [Leverage Short Simulation](/getting-started/strategy-explainers/leverage/leverage-short-simulation)
* [Leverage Long PT Simulation](/getting-started/strategy-explainers/pt-strategies/leverage-long-pt-simulation)
  {% endhint %}

## What This Means

By depositing into Factor leverage vaults, you can amplify your potential returns by taking either a:

* **Long position (**:ox:**):** Supply <mark style="color:green;">asset</mark> token which you believe will increase in value relative to the <mark style="color:red;">debt</mark> token thereby amplifying your exposure to any <mark style="color:green;">asset</mark> gains. For example, by taking a leveraged WETH/USDC position, the value of the debt (i.e. USDC) to the collateral (i.e. WETH) decreases if WETH increases in price relative to USDC.
* **Short position (**:bear:**):** Borrow <mark style="color:red;">debt</mark> token which you believe will decrease in value relative to the <mark style="color:green;">asset</mark> token thereby reducing your <mark style="color:red;">debt</mark> obligations. For example, by taking a leveraged USDC/WETH position, the value of the debt (i.e. WETH) to the collateral (i.e. USDC) decreases if WETH decreases in price relative to USDC.

{% hint style="success" %}
**Get Started With Leverage Strategies!**

You can visit our [Leverage User Guides](/factor-discover/factor-discover/leverage-user-guides) if you would like to get started with leverage strategies.
{% endhint %}

## Leverage Multiplier

To calculate the effective amount of leverage for the position, you can input the position's loan-to-value (LTV) ratio into the following formula:

$$
LevMultiplier = \frac{1}{1-borrow%}
$$

For example, a $$borrow%$$ of 50% will give a 2x multiplier while a 66% $$borrow%$$ will be a 3x multiplier.

Each lending market specifies a max LTV which caps the maximum leverage that can be acquired via repeated loops:&#x20;

$$
LevMultiplier\_{max} = \frac{1}{1-borrow\_{max}%}
$$

## Examples

{% tabs %}
{% tab title="Long: WETH/USDC" %}

### **Strategy Parameters**

* Asset token: WETH
* Debt token: USDC
* Price ratio: 1WETH:3,000USDC
* Leverage vault: WETH/USDC

### **Position Parameters**

* Leverage multiplier: 4

### **Deposit Parameters**

* Initial capital: 1WETH

### Strategy Execution

<figure><img src="/files/tUOAOb6bwalMaAiNlC39" alt=""><figcaption><p>Leverage WETH long</p></figcaption></figure>

### Strategy Results

* WETH exposure -> $$4\text{WETH}\times{\text{supplyAPY}}$$
* USDC debt obligation -> $$9000\text{USDC}\times{\text{borrowAPY}}$$

### Profit Condition

Assuming the difference between $$supplyAPY$$ and $$borrowAPY$$ is negligible, the position earns 4x the profit for every increment in WETH price.

If WETH price increases 1% to 1WETH:3,030USDC, the position's collateral of 4WETH is now worth 12,120USDC. By choosing to close the position and repay the loans (i.e. 9,000USDC), the depositor is left with the initial capital of 1WETH and a profit of 120USDC. This equates to a 4x profit based on the depositor's initial outlay (i.e. every 1% gain in WETH is multiplied by the leverage multiplier).

### Leverage Risks

The leverage multiplier also works in the opposite direction if the WETH prices drop. This means that the higher the leverage multiplier, the higher the risks of liquidation as the debt value remains the same while the position's collateral value drops significantly.

For example, a 1% drop in WETH price to 1WETH:2,070USDC results in the position's collateral of 4WETH being valued at 11,880USDC. Upon paying back the 9,000USDC debt, the depositor is only able to retrieve 0.96ETH (i.e. a 4% loss).&#x20;

Notice that for the collateral to always cover the debt obligations, WETH can only drop a maximum of 25% before the position becomes undercollateralized and therefore liable to forced liquidations.
{% endtab %}

{% tab title="Short: USDC/WETH" %}

### **Strategy Parameters**

* Asset token: USDC
* Debt token: WETH
* Price ratio: 1WETH:3,000USDC
* Leverage vault: USDC/WETH

### **Position Parameters**

* Leverage multiplier: 4

### **Deposit Parameters**

* Initial capital: 3,000USDC

### Strategy Execution

<figure><img src="/files/yDpZg2Lv7QldYcjAW7j3" alt=""><figcaption><p>Leverage WETH long</p></figcaption></figure>

### Strategy Results

* USDC exposure -> $$12000\text{USDC}\times{\text{supplyAPY}}$$
* WETH debt obligation -> $$3\text{WETH}\times{\text{borrowAPY}}$$

### Profit Condition

Assuming the difference between $$supplyAPY$$ and $$borrowAPY$$ is negligible, the position realizes a 4x profit for every decrement in WETH price.

If WETH price drops 1% to 1WETH:2,070USDC, the 3WETH debt obligation remains the same as it is denominated in WETH. To close the position, the depositor can then:

1. Flash loan outstanding 3WETH debt
2. Repay lending pool 3WETH debt
3. Retrieve 12,000USDC collateral
4. Swap 11,880USDC to 3WETH&#x20;
5. Repay 3WETH flash loan
6. Profit 120USDC

This equates to a 4x profit based on the depositor's initial outlay (i.e. every 1% drop in WETH is multiplied by the leverage multiplier and realized as USDC gains).

### Leverage Risks

The leverage multiplier also works in the opposite direction if the WETH prices increase. This means that the higher the leverage multiplier, the higher the risks of liquidation as the asset value remains the same while the position's debt value increases significantly.

For example, a 1% increase in WETH price to 1WETH:3,030USDC results in the position's debt of 3WETH being valued at 9,090USDC. Upon paying back the debt, the depositor is only able to retrieve 2,910USDC (i.e. a 3% loss).&#x20;

Notice that for the collateral to always cover the debt obligations, WETH can only increase by a maximum of 33% before the position becomes undercollateralized and therefore liable to forced liquidations.
{% endtab %}
{% endtabs %}


# Leverage Performance Modelling

{% embed url="<https://docs.google.com/spreadsheets/d/1N0g5Pd-b-2artMU-zMogD_hgZQ6HmgqRqgN_v-XQzs4/edit?usp=sharing>" fullWidth="true" %}

{% hint style="success" %}
**Try It Out!**

You can change the model parameters by making edits to the [Google Sheets](https://docs.google.com/spreadsheets/d/1Eevlf8FKrnUQWPvM8zqXi1HZLi1TuMqzdeImo4EG5XE/edit?usp=sharing).
{% endhint %}


# Leverage Long Simulation

{% embed url="<https://docs.google.com/spreadsheets/d/15Lopef6G2iq4tENT4fs87ETRaV1YiCLp0dQAZs60Urs/edit?usp=sharing>" fullWidth="true" %}

{% hint style="success" %}
**Try It Out!**

You can change the model parameters by making edits to the [Google Sheets](https://docs.google.com/spreadsheets/d/19vwuheFm9lSNzmXJDw7D9VjB9jf4MyBvPeGcDxPzkw0/edit?usp=sharing).
{% endhint %}


# Leverage Short Simulation

{% embed url="<https://docs.google.com/spreadsheets/d/1ty9126XRD9w3UtGtzIW-EFLftUJ8w_4iF33fmCoac2w/edit?usp=sharing>" fullWidth="true" %}

{% hint style="success" %}
**Try It Out!**

You can change the model parameters by making edits to the [Google Sheets](https://docs.google.com/spreadsheets/d/1a7ChR5DjqDwr0ktqIdRPmGYGIv2hlLWDDHKg1OYNPsE/edit?usp=sharing).
{% endhint %}


# Yield

## Overview

<figure><img src="/files/8drmDihkZORLxcgHSHtm" alt=""><figcaption><p>Auto-compounding rewards</p></figcaption></figure>

The Factor yield strategies automates the process of yield farming on various liquidity protocols. Instead of having to manually harvest liquidity incentives, depositors can just **deposit once into a yield strategy and watch their yields auto-compound**. Factor yield vaults leverages [Gelato Web3 Functions](https://docs.gelato.network/web3-services/web3-functions) to periodically trigger the harvesting of rewards. Not only are the transaction costs incurred per harvest socialized amongst strategy depositors but the higher frequency of harvesting results in upsized yields for depositors.

As each protocol implements their own liquidity incentives, Factor yield strategies are usually tailored to a set of related underlying protocols. Nonetheless, yield strategies generally take the following approach:

1. Users must first provide liquidity to the underlying liquidity protocol to obtain the LP tokens for the target pool
2. The pool LP tokens are then deposited into Factor yield vault
3. Factor stakes the LP tokens into related protocol incentive programs whereupon farming rewards constantly accrue to the liquidity position
4. The strategy defines an optimal harvesting frequency
5. During each harvest event, all the reward tokens accumulated in that period are claimed and swapped for pool tokens
6. The swapped pool tokens are then deposited as additional liquidity in the underlying liquidity protocol and the process is repeated

Note that a higher harvest frequency amplifies the effects of compounding while minimizing the depositor's exposure to reward tokens.

<details>

<summary>Related Concepts</summary>

* [Yield Farming](/factor-building-blocks/yield/concepts/yield-farming) -> Providing liquidity to protocols which provide significant liquidity incentives

</details>

{% hint style="success" %}
**Strategy Performance & Simulations**

The interactive sheets below are meant help you gain an intuition of the potential strategy returns. Choose your tokens, add your strategy parameters, and see how Factor Auto-Compound strategies simplifies your DeFi journey.

* [Yield Performance Modelling](/getting-started/strategy-explainers/yield/yield-performance-modelling)
  {% endhint %}

## What This Means

By depositing into Factor yield vaults, you can:

* **Amplify returns:** Rewards are harvested and reinvested into your liquidity position more often resulting in greater yields through compounding.
* **Reduce manual overhead:** Yields are auto-compounded periodically without having to constantly  sign each harvest transaction.
* **Reduce gas costs:** The gas costs required to execute the harvest, swap, and reinvestment operations are socialized as the vault combines all of the vault's liquidity adjustments into a single transaction.
* **Reduce exposure to reward tokens:** More frequent reinvestment cycles reduce exposure to protocol reward tokens which are generally more volatile.

{% hint style="success" %}
**Get Started With Auto-Compounding Strategies!**

You can visit our [Yield User Guides ](/factor-discover/factor-discover/yield-user-guides/auto-compound-your-yields)if you would like to get started with leverage strategies.
{% endhint %}

## Examples

{% tabs %}
{% tab title="PendlePenpie: wstETH" %}

### Underlying Protocols

* **Core protocols:**&#x20;
  * [Pendle](https://app.pendle.finance/)
    * Stake PENDLE to get [vePENDLE](https://docs.pendle.finance/ProtocolMechanics/Mechanisms/vePENDLE)
    * Vote on Pendle gauge emission rewards with vePENDLE
    * Receive Base APY rewards from interests collected from YT and matured PT rewards (accrues to vePENDLE)
    * Receive 80% of swap fees from voted pools
    * LP yield from wstETH pool
  * [Lido](https://stake.lido.fi/)
    * Liquid stake ETH to unlocked staked ETH liquidity
  * Ethereum
    * Stake ETH to secure the network and receive PoS yields (consensus voting rewards, priority fees, MEV rewards)
* **Incentive protocols:**
  * [Penpie](https://www.pendle.magpiexyz.io/)
    * Stake PENDLE to get mPendle with boosted yields and boosted Pendle voting power
    * [PNP](https://docs.penpiexyz.io/tokens/pnp-token) emissions allocated to target pools on Penpie
  * [Factor](https://app.factor.fi/)
    * [esFCTR](/governance/fctr-token#esfctr) emission rewards allocated to target pools via [Factor Scale](/governance/factor-scale)

### Strategy Parameters

* **Underlying pool:** wstETH maturing 26 Jun 2025
* **Assets involved:**
  * ETH -> Core underlying asset
  * wstETH -> Primary token for depositing into Pendle
  * PT wstETH -> The principal token of the Pendle wstETH pool representing the principal portion of the locked wstETH on Pendle. Used for depositing on Penpie
  * PENDLE -> Farming rewards for staking LP wstETH in Penpie
  * PNP -> Farming rewards for staking LP wstETH in Penpie
  * wETH -> Intermediary swap output token with deeper liquidity
* **Current TVL** (snapshot 24/04/24)**:** \~1.13K USD
* **Projected Yields** (snapshot 24/04/24)**:**
  * [Lido wstETH](https://stake.lido.fi/) -> 3.2% APR
  * [Pendle wstETH pool ](https://app.pendle.finance/trade/pools/0x08a152834de126d2ef83d612ff36e4523fd0017f/zap/in?chain=arbitrum)-> 7.017% unboosted APY; 11.36% boosted APY (max)
  * [Penpie Lido wstETH](https://www.pendle.magpiexyz.io/stake/0x08a152834de126d2ef83D612ff36e4523FD0017F) -> 9.81% boosted APY (max)
  * [Factor Scale](/governance/factor-scale) -> 264.65% APR

### Strategy Execution

[Yield harvesting loop](https://app.factor.fi/vault/0xfc0D36C2781F26377da6b72Ab448F5b2a71e7D14):

1. Harvest Penpie rewards distributed as PENDLE and PNP
2. Swap PENDLE to WETH (Uniswap V2)
3. Swap PNP to WETH (Camelot)
4. Swap WETH to wstETH (Uniswap V2)
5. Swap wstETH to PT wstETH (Pendle)
6. Stake PT wstETH on Penpie

### Strategy Results

$$
ProjectedAPY = StrategyAPY + ScaleAPY
$$

$$
ProjectedAPY = 10.09% + 264.65%
$$

$$
ProjectedAPY = 274.74%
$$

### Strategy Evaluation

The depositor is projected to earn 274.74% on Factor as compared to 9.81% on Penpie (a \~28x yield multiplier). Even when discounting the Factor protocol rewards, depositors can earn an incremental yield of 10.09% due to the effects of auto-compounding.

### Strategy Risks

It is important to note that during the period of this analysis, the Factor Scale rewards significantly boosted the projected APY as a large proportion of Factor emissions were allocated to limited vault liquidity. Nevertheless, this would make it the perfect time to yield farm.

Of note, [Factor Scale](/governance/factor-scale) rewards are linearly vested as [esFCTR](/governance/fctr-token#esfctr) over 90 days hence are not automatically compounded by the strategy. While this vesting period ensures the long term sustainability of the Factor ecosystem, this also means that  your portfolio will be exposed to [FCTR](/governance/fctr-token#fctr)  price for an extended period. Nevertheless, the [FactorDAO](/governance/factordao) has been implementing long term [tokenomic](/governance/fctr-token#tokenomics) incentives to ensure the growth and evolution of a resilient platform via an actively involved community.&#x20;
{% endtab %}

{% tab title="PendlePenpie: eETH" %}

### Underlying Protocols

#### [Factor](https://app.factor.fi/)

* Auto-compounding of accrued farming rewards via periodic reinvestment cycles.
* [esFCTR](/governance/fctr-token#esfctr) emission rewards allocated to target pools via [Factor Scale](/governance/factor-scale).
* Direct ERC20 liquidity incentives via [Factor Boost](/governance/factor-boost).
* Boosted Ether.fi Loyalty points.

#### [Penpie](https://www.pendle.magpiexyz.io/)

* Stake LP eETH to earn boosted Pendle rewards via amplified Penpie voting power.
* [PNP](https://docs.penpiexyz.io/tokens/pnp-token) emissions allocated to target pools on Penpie.
* Benefit from the Penpie Bribery Market for boosted emission influence.
* Boosted Ether.fi Loyalty points of up to 2x.

#### [Pendle](https://app.pendle.finance/)

* Exchange weETH for LP eETH.
* Acquire PT eETH at a discount from it's maturity date (i.e. discounted principal portion of yield-bearing asset).
* Receive swap fees on LP weETH as PT eETH is used to market make on the Pendle weETH/PT eETH pool.
* Receive boosted liquidity incentives as staked PENDLE (via Penpie) is used to direct Pendle emissions.

#### [Ether.fi](https://app.ether.fi/)

* Earn additional restaking yields as underlying ETH is used to secure other applications in exchange for a fee.
* Earn Ether.fi Loyalty points.
* Earn EigenLayer Restaking points.

[Lido](https://stake.lido.fi/)

* Auto-compounding of execution layer rewards.

#### [Ethereum](https://ethereum.org/en/learn/)

* Stake ETH to secure the network and receive PoS yields (consensus voting rewards, priority fees, MEV rewards).

### Strategy Parameters

* **Underlying pool:** eETH maturing 27 Jun 2024
* **Assets involved:**
  * [ETH](https://ethereum.org/en/eth/) -> Core underlying asset.
  * [eETH](https://etherfi.gitbook.io/etherfi/ether.fi-whitepaper/eth-re-staking) -> Ether.fi natively restaked rebase token.
  * [weETH](https://etherfi.gitbook.io/etherfi/ether.fi-whitepaper/eth-re-staking) -> Non-rebase version of eETH which staking rewards accrue to. Primary token for depositing into Pendle.
  * [PT eETH](https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT) -> The principal token of the Pendle eETH pool representing the principal portion of the locked weETH on Pendle.
  * [LP eETH](https://docs.pendle.finance/ProtocolMechanics/LiquidityEngines/AMM) -> LP tokens representing share of Pendle eETH liquidity pool. Used for depositing on Penpie.
  * [PENDLE](https://docs.pendle.finance/ProtocolMechanics/Mechanisms/vePENDLE) -> Governance token of Pendle. Distributed as farming rewards for providing liquidity on Pendle (via Penpie).
  * [PNP](https://docs.penpiexyz.io/tokens/pnp-token) -> Governance and revenue-sharing token of Penpie. Distributed as farming rewards for staking LP eETH in Penpie.
  * [wETH](https://ethereum.org/en/wrapped-eth/#intro-to-weth) -> Intermediary swap output token with deeper liquidity.

### Strategy Execution

[Yield harvesting loop](https://app.factor.fi/vault/0xfc0D36C2781F26377da6b72Ab448F5b2a71e7D14):

1. Harvest Penpie rewards distributed as PNP
2. Harvest Pendle rewards distributed as PENDLE
3. Swap PNP to WETH (Camelot)
4. Swap PENDLE to WETH (Uniswap V2)
5. Swap WETH to weETH (Balancer)
6. Exchange weETH to LP eETH (Pendle)
7. Stake LP eETH on Penpie
   {% endtab %}
   {% endtabs %}


# Yield Performance Modelling

{% embed url="<https://docs.google.com/spreadsheets/d/1xjmR9s68GauvYKKHjdMwMwOZT7Ouhd_xr7BvvxlJXLs/edit?usp=sharing>" fullWidth="true" %}

{% hint style="success" %}
**Try It Out!**

You can change the model parameters by making edits to the [Google Sheets](https://docs.google.com/spreadsheets/d/1MugRUftVEhAzGbcLYYNWYhGJUaJkeN5zgW_126KCRD0/edit?usp=sharing).
{% endhint %}


# PT Strategies

{% hint style="info" %}
**Pendle Yield Tokenization**

PT Strategies refer to DeFi strategies which utilize [Pendle's Principal Token](https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT) (i.e. PT). Through splitting yield-bearing assets into various tokens, Pendle enables users to earn a fixed yield by holding Principal Tokens till maturity or speculate on the variable yields through trading Yield Tokens.

Please visit [Pendle Docs](https://docs.pendle.finance/Introduction) for further info on the yield tokenization mechanics.
{% endhint %}

## PT Overview

Pendle's [Principal Token](https://docs.pendle.finance/ProtocolMechanics/YieldTokenization/PT) (PT) enables users to earn a fixed yield by holding the newly acquired PT until the stated maturity date. This means that instead of worrying about changes in yield over time, users can lock in fixed returns at a specified future date by holding PT. **The fixed return is represented as a discount on PT** (i.e. locked in at acquisition) which enables holders to claim the accounting asset at a 1:1 ratio on the maturity date.

The example below provides an intuitive understanding of PT returns for different yield token types:

{% tabs %}
{% tab title="Interest-Bearing" %}
*Yields from interest-bearing assets are realized as an increase in the **value** of the token.*

1. Bloxy has 1 [weETH](https://etherfi.gitbook.io/etherfi/ether.fi-whitepaper/eth-re-staking) which represents 1 restaked ETH that is earning both Ethereum Mainnet PoS rewards and ETH restaking yields.
2. At the beginning of the year (i.e. 01JAN2023) Bloxy exchanges 1 weETH for 1.1 PT-weETH-01JAN2024 which matures at the beginning of the next year (i.e. 01JAN2024).
3. By holding 1.1 PT-weETH-01JAN2024 until maturity (i.e. 1 Jan 2024), Bloxy is able to redeem 1.1 ETH worth of PT-weETH at the stated date.
   {% endtab %}

{% tab title="Rebasing" %}
*Yields from rebasing tokens are realized as an increase in the total **number** of tokens held.*

1. Bloxy has 1 [stETH](https://help.lido.fi/en/articles/5230610-what-is-steth) which represents a share of ETH that is staked via Lido (i.e. staked ETH and staking rewards).
2. At the beginning of the year (i.e. 01JAN2023) Bloxy exchanges 1 stETH for 1.1 PT-stETH-01JAN2024 which matures at the beginning of the next year (i.e. 01JAN2024).
3. By holding until maturity (i.e. 1 Jan 2024), Bloxy is able to redeem 1.1 PT-stETH-01JAN2024 for 1.1 stETH at the stated date.
   {% endtab %}
   {% endtabs %}

The discounted PT in step 2 above comes about due to:

* **Opportunity Costs:** To get the indicated returns at the point of exchanging TKN for PT-TKN, users must hold PT until maturity.&#x20;
* **Price Of Certainty:** PT holders are selling their claim to any upside in yields whereby the yields accrued by the underlying asset are still liable to change as it is traded on the open market.

In effect, PT holders are going short (i.e. bearish) on the yield portion of the yield-bearing asset. In other words, **PT holders expect that the amount of yield generated until maturity will be less than the discount received when exchanging TKN for PT-TKN**.&#x20;

If 1 PT-TKN enables you to claim 1.1TKN at the maturity date, exchanging your TKN for PT-TKN means that you expect the total yield accrued during the maturity period to be less than 0.1TKN. Additionally, you can hold PT-TKN to ensure that you get a fixed 0.1TKN return at maturity and not have to worry about yield fluctuations for that period.

{% hint style="success" %}
**Get Started With PT Strategies!**

You can visit our [PT User Guides](/factor-discover/factor-discover/pt-user-guides) if you would like to get started with amplified PT yields.
{% endhint %}

## PT Strategies

Strategies utilizing PT takes advantage of the fixed income nature of PT whereby the value of a PT-TKN is always approaching that of its accounting asset at maturity date. To see why this is the case, remember that PT-TKN can be redeemed 1:1 for the accounting asset (i.e. TKN) on maturity.&#x20;

The above means that the PT-TKN discount declines towards zero on maturity as the yield portion of the yield-bearing asset (i.e. YT) becomes increasingly insignificant. In other words, **the shorter the time to maturity, the less time there is for yield to accrue hence the lower the PT discount**. This is why PT with longer maturity periods are able to command higher fixed APYs (in addition to having a longer holding period).

It is critical to note that TKN to PT-TKN swaps can also happen in reverse as Pendle provides a [market](https://app.pendle.finance/trade/markets) for trading of all the tokenized yield equivalents. Consequently, the price of TKN:PT-TKN is dependent on the current market conditions (i.e. do yield traders believe that the yield accrued by TKN until the maturity date is more or less than the current discount).

{% hint style="info" %}
**PT Fixed APYs**

As a PT holder that has no intention to trade, the most important thing to note is that **the expected fixed return from holding PT is only realized as real returns on the maturity date**. While PT can be traded, it does not accrue any yield and only allows redemption of the accounting asset on maturity.

Consequently, **the expected returns is "locked in" based on when TKN was swapped for PT-TKN**.
{% endhint %}

### PT Leverage Strategies

By lending PT-TKN and borrowing TKN (i.e. Long PT), the fixed income nature of PT ensures that **the value of the collateral (i.e. PT-TKN) is always increasing relative to debt (i.e. TKN)**. Barring any black swan events, this ensures that the position never becomes undercollateralized.

The additional TKNs borrowed can then be swapped for more PT-TKN and supplied to the lending pool thereby increasing exposure to the PT's fixed returns on maturity (i.e. you are holding more PT based on the initial portfolio value). This process can be repeated with the fixed returns being "locked in" with each TKN to PT-TKN swap.

{% hint style="success" %}
**Leverage Strategies Explained**

Please view our [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like a deeper dive into the design of the standard leverage strategy.
{% endhint %}

To ensure a sustainable lending and borrowing market, lending pools specify both a Supply APY and Borrow APY. PT-TKN supplied will earn a Supply APY while TKN borrowed will incur a Borrow APY. As a PT leverage strategy depositor, the Borrow APY is the cost of maintaining your leveraged exposure to PT-TKN.&#x20;

**As PT returns are only realized on maturity, any changes to your leveraged position before the maturity date will have varying effects based on the market conditions.** For example, removing your leverage results in your PT-TKNs being sold at the current market price which can be either higher if yields have been increasing since you initially acquired PT or less if yields have been decreasing.

Due to the inherent complexity with managing PT strategies, it is recommended that the PT leveraged position be held until maturity to realize the fixed returns. Leveraged PT strategies are profitable as long as the Fixed APY at which you acquired PT is greater than the average Borrow APY during the maturity period.

{% hint style="warning" %}
**Look Out For:**

* [x] Fixed returns are only realized on maturity.
* [x] Your expected returns are fixed at the point of leverage creation.
* [x] Borrowing costs can change throughout the maturity period.
* [x] Changes to your position will sell your existing position on the open market (i.e. profit/loss is dependent on the market).
* [x] Position adjustments will result in PT being acquired at the current market fixed APY.
  {% endhint %}

### PT Yield Strategies

Auto-compounding strategies take advantage of yield farming rewards which are provided to LP token holders. To incentivize adoption of PT, protocols will provide additional rewards which are external to PT performance. This includes the claiming of governance tokens as well as liquidity incentive tokens.

{% hint style="success" %}
**Yield Strategies Explained**

Please view our [Yield Strategy Explainer](/getting-started/strategy-explainers) if you would like a deeper dive into how yields can be auto-compounded.
{% endhint %}

PT yield strategies forego any trading risks and instead enable you to grow your initial LP token holdings by regularly harvesting all accrued rewards and swapping for more LP tokens. By automating this harvest and swap routine, your rewards can be compounded as you gain incrementally more LP tokens with each cycle.

Auto-compounding immediately swaps all available rewards for LP tokens at each execution cycle hence the amount of PT acquired will be dependent on the market conditions. Critically, **as PT rewards are only realized at maturity, each subsequent PT swap will have gradually less discount as it gets closer to maturity**. Put simply, your newly acquire PT fixed returns will generally reduce with every compounding cycle.

PT yield strategies are a good way to increase your fixed returns without any downside risks as compared to just holding your initial LP token amount. Moreover, by consistently swapping your accrued reward tokens for LP tokens, you reduce your reward token exposure risks due to the reduced reward token holding times.

{% hint style="warning" %}
**Look Out For:**

* [x] Decrementing fixed returns for PT with every subsequent auto-compound cycle.
* [x] Changes in the price of reward tokens relative to PT.
  {% endhint %}


# Leverage Long PT Simulation

{% embed url="<https://docs.google.com/spreadsheets/d/1swAi8dh5UkkemP5PFIz0MQFWfHhJB7L2VUhCUb1fMVc/edit?usp=sharing>" fullWidth="true" %}

{% hint style="success" %}
**Try It Out!**

You can change the model parameters by making edits to the [Google Sheets](https://docs.google.com/spreadsheets/d/1EzPB9GwADL1NBvRRC-xdisb4Z6WdfUZAQmhxEjIyaP0/edit?usp=sharing).
{% endhint %}


# Delta Neutral Yields

## Overview

In finance, delta refers to the sensitivity of a strategy's value to changes in the underlying asset price. Achieving delta neutrality means that whichever the price direction of the underlying asset, the strategy's value always remain the same.

Delta neutrality is made possible by combining Long and Short positions. This is achievable as any upside/downside risks are hedged against each other resulting in a delta neutral strategy. As such a delta neutral strategy shields the strategy from short term market volatility.

The reason for such a strategy is that it is possible to yield farm across DeFi while ensuring that any downside (and by extension, any upside) risks are neutralized. As such, delta neutral strategies generate yields regardless of the market direction.

{% hint style="success" %}
**Leverage Positions**

You can learn more about Long and Short positions in our [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage).
{% endhint %}


# Levered USD & ETH Carry

## Overview

By taking advantage of stablecoin inherent neutrality (i.e. all stablecoins are designed to maintain a peg), you can earn interest differentials between `USD` lending markets and `ETH` borrow markets.

`ETH` borrows can be hedged by holding `ETH` which is then swapped for `rETH` to earn additional `ETH` yields. This `rETH` portion can be sold at anytime to cover any potential `ETH` debt.

## Strategy

The strategy consists of 2 positions:

* **Leveraged short `USD`/`ETH`:** By looping `ETH` borrows against `USD` supply, you can earn the difference between `USD` supply interest and `ETH` borrow interest.
* **Leveraged long rETH/ETH:** By looping `ETH` borrows against `rETH` suply, you can earn the difference between `rETH`liquid staking yields and `ETH`borrows.

By combining the two positions above, there is minimal exchange risks as the `ETH`debt is always covered by the `rETH`portion.&#x20;

### Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* Max LTV for `USD`: 75%
* Average `USD` supply interest: 6-9%
* `ETH` borrow interest: 2.3%
  {% endtab %}

{% tab title="Compound" %}

* Max LTV for rETH on ETH market: 90%
* ETH borrow interest: 2.14%
* COMP reward on ETH borrow: 0.51%
  {% endtab %}

{% tab title="Rocket Pool" %}

* Liquid staking APR: 2.6%
  {% endtab %}
  {% endtabs %}

{% hint style="info" %}
For ease of reference, the example below assumes a starting capital of $100 `USD` and an even split between the 2 positions.
{% endhint %}

### Create a 2x leveraged short USD/ETH position

#### **Steps**

1. Flash loan $50 `USD` amount from Balancer
2. Lend $100 `USD` on Aave
3. Borrow $50 `ETH`

#### **Results**

{% tabs %}
{% tab title="Balances" %}

* Collateral: $100 `USD` lent&#x20;
* Debt: $50 `ETH` borrowed (50% LTV)
* Net Collateral: $50 `USD`
  {% endtab %}

{% tab title="Interest" %}

* Net on starting capital: 7.85% `USD`
* Net on borrowed amount: 6.7% `USD` (9% `USD` supply - 2.3% `ETH` borrow)
  {% endtab %}
  {% endtabs %}

### Create a 5.3x leveraged long rETH/ETH position

#### Steps

1. Swap $50 `USD` for `rETH`
2. Flash loan $215 `rETH` (5.3x max lev with 10% buffer) from Balancer
3. Lend $265 `rETH` on Compound
4. Borrow $215 `ETH`
5. Swap `ETH` for `rETH` to repay flash loan

#### Results

{% tabs %}
{% tab title="Balances" %}

* Collateral: $265 `rETH` lent
* Debt: $215 `ETH` borrowed (81% LTV)
* Net collateral: $50 `rETH`
  {% endtab %}

{% tab title="Interest" %}

* Net on starting capital:&#x20;
  * 2.29% `ETH`
  * 1.35% `COMP`
    {% endtab %}
    {% endtabs %}

### Final result

The net yields for this strategy are as follows:

* 7.85% `USD`
* 2.29% `ETH`
* 1.35% `COMP`

This is a blended \~11.5% yield which is an additional 2.5% yield as compared to just a pure USD lending strategy (i.e. a 24% yield improvement).


# Glossary

## APR (Annual Percentage Rate)

The yearly percentage returns generated from an invested principal amount (i.e. interest rate), not taking into account compounding.

***

## APY (Annual Percentage Yield)

The yearly percentage returns generated from an invested principle amount (i.e. interest rate), taking into account compounding.

***

## Approve

An ERC20 token function that, once executed by the network, enables another address to spend the specified amount of tokens from a user’s address (i.e. EOA).

***

## AMM (Automated Market Maker)

AMMs maintain a liquidity pool of assets against which trades can be made automatically along a pricing curve in exchange for a fee.

***

## Boost

Additional token rewards which are distributed to vault depositors to incentivize deeper liquidity for the vault. [Factor Boost](/governance/factor-boost) allows anyone to allocate any ERC20 token as additional rewards for depositors in a target strategy vault.

***

## Borrow

The act of obtaining a loan whereby a user is provided capital upfront with the obligation to return the initial capital plus whatever accrued interest to the lender in the future.

***

## Collateral

An asset which is pledged/committed as a security to enable the issuance of another asset (e.g. tokens, loans, etc.).

***

## Collateralisation Ratio

The ratio between the value of the collateralized assets versus the the debt (i.e. borrow amount) issued.

***

## Concentrated Liquidity

An AMM concept whereby capital is allocated to narrower price ranges thereby increasing market making capital efficiency.

***

## DAO (Decentralized Autonomous Organization)

Collectively-owned, blockchain-governed organisations working towards a shared mission.

***

## Debt

An asset which is owed by means of the user taking out a loan (i.e. borrow position).

***

## DEX (Decentralized Exchange)

A decentralized trading platform that enables peer-to-peer trading of tokens without the custodial requirements of a middleman.

***

## ERC20

A technical standard for fungible tokens that enable safe handling of interchangeable tokens with predictable behaviours.

***

## ERC721

A technical standard for non-fungible tokens that enable safe handling of unique tokens with predictable behaviours.

***

## Fair Launch

A token initial distribution method whereby all participants get the same priority (no premines or founder allocations) to the newly minted tokens based on resource contributions to the protocol.

***

## Farming

The provision of liquidity to a protocol in exchange for additional rewards that are indirectly distributed by the protocol as incentives.

***

## Fee Tier

The fee tier specifies a percentage fee for every swap that takes place against an AMM liquidity pool. This trading fee compensates liquidity providers for contributing liquidity to the market.

***

## Flash Loan

Uncollateralised lending of crypto assets that enables profit making strategies via stacking multiple strategies into a single Ethereum transaction.

***

## Gas Fee

A transaction fee that is paid to the network to incentivize processing of the submitted transaction.

***

## Gauge

The gauge measures how much a particular address is contributing towards a pool's liquidity and is usually weighted based on specific protocol goals.

***

## Health Factor

Used in the context of lending, the Health factor is a score which represents the safety of the collateralized assets against liquidations due to changes in asset to debt valuations. The lower the Health Factor, the higher the likelihood of liquidation with a Health Factor of 1 indicating that the liquidation threshold value is equal to the debt value borrowed.

***

## Leverage

In the financial context, leverage refers to the usage of borrowed capital for funding. That is, collateralizing your current capital in order to "lever up" your spending power through borrowed funds.

***

## Liquidation

Usually used in the context of leveraged positions, liquidations refer to the forced closure of a borrow position when it becomes undercollateralized.

***

## Liquidation Price

Specific to lending positions, the liquidation price is the price ratio between the borrow position's asset token and debt token at which the position becomes undercollateralized therefore becoming liable forced liquidations.

***

## Liquidity Mining

Also referred to as yield farming, liquidity mining is the process of providing liquidity to specific protocol pools for the purposes of receiving additional rewards that are external to the market making fees

***

## Liquidity Pool

A smart contract that maintains a pool of assets against which trades can be made automatically along a pricing curve in exchange for a trading fee.

***

## Liquidity Position

Usually used in the context of concentrated liquidity pools, a liquidity position is a NFT which represents a liquidity provider's unique liquidity contributions to a pool.

***

## Liquidity Position Range

Used in the context of concentrated liquidity, each position will specify a price range within which the underlying liquidity is used to facilitate trades and earn fees.

***

## Liquidity Provider

A user who provides liquidity, in the form of tokens, to a liquidity pool in exchange for a fee for trades utilizing their liquidity.

***

## LP Token

Liquidity Pool Tokens represent a share of the pool's underlying liquidity and are provided to Liquidity Providers in exchange for their contributed liquidity.

***

## LTV (Loan To Value)

The ratio between the value of the loan versus the value of the underlying collateral. Higher LTV implies higher risks due to decreased likelihood of repayments.

***

## Managed On Factor

The total value of all DeFi positions that is being actively facilitated by Factor.

***

## Margin

In DeFi, margin refers to the collateral which a user pledges in exchange for borrowing additional liquidity to facilitate trades above the collateral value.

***

## Margin Call

A margin call occurs when the value of collateralized assets underlying a loan is insufficient and the borrower is "called" to add more collateral or close the position (maybe forecfully).

***

## Position&#x20;

A position describes a user's stake in a DeFi strategy which includes the user-defined parameters that enables a user to execute generalized DeFi strategies as well as the value of assets contributed.

***

## Price Impact

The resulting change in the market price that is brought about due to the execution of a swap transaction.

***

## Repay

Specific to loans, it is the process of paying back the owed debt of a loan in order to reduce the amount borrowed.

***

## Scale

Refers to [Factor Scale](/governance/factor-scale) which a a gauge voting mechanisms that enables veFCTR holders to vote on the distribution of weekly gauge rewards to different community curated vaults created on Factor.

***

## Slippage

The difference between the expected and final price of a trade.

***

## Swap

In the context of DeFi, a swap is a peer-to-peer exchange of digital assets that is facilitated by permissionless smart contracts.

***

## Switching

Used in the context of a leveraged position, switching enables users to change the asset that is being collateralized or the asset that is borrowed.

***

## Threshold

Used in the context of a leveraged position, the liquidation threshold is the ratio between a leveraged position's debt to collateral at which the borrowing position becomes undercollateralized (i.e. at risk of being liquidated).

***

## Token

A general term which in the DeFi context refers to the representation of digital assets (i.e. definitions and interfaces) on a blockchain.

***

## TVL  (Total Value Locked)

A measure of the total value of all tokens which are locked within a protocol's smart contracts.

***

## Vault

Used to refer to a smart contract which holds assets on behalf of the user in order to automate yield generating strategies.

***

## Wallet

Software that securely holds the private key that enables users to conveniently interact with the blockchain and control their assets on the network.

***

## Zap

In DeFi, zaps refer to a convenience feature which enables users to interact with multi-token strategies by using a single token.


# Factor Discover

Connecting Users To DeFi

## Overview

<figure><img src="/files/pALPtX7yiYQYg3bw1Ody" alt=""><figcaption></figcaption></figure>

Factor Discover bridges the gap between professional strategy builders and DeFi users by providing an intuitive interface for users to explore and participate in a diverse array of professionally managed DeFi strategies. With easy access to an ever expanding pool of DeFi strategies, Factor Discover greatly simplifies the process of finding suitable opportunities based on personalized preferences and goals.

Sitting at the top the [Factor Studio](/factor-studio/factor-studio), Factor Discover provides a gateway for users to access a comprehensive suite of pre-built DeFi strategies directly from their browser. By equipping users with advanced tools and data required to navigate an increasingly complex space, Factor Discover facilitates informed decision making via supercharging DeFi accessibility for the masses.

Critically, Factor Discover is a crucial component that fosters a thriving DeFi community. For strategy builders (i.e. Creators), Factor Discover functions as a valuable distribution channel amplifying the visibility of their strategies. Conversely, users get unlimited access to a myriad of competitive strategies thereby driving even greater innovation.

{% hint style="info" %}
**Factor Discover Versions**

As Factor continues to decentralize the permissionless asset management space, the goal will be to have a single Discover dapp that is dedicated to public strategies.

During this transition period, there will be 2 versions of Discover:

* <https://app.factor.fi/> → Factor deployed strategies.
* <https://pro.factor.fi/> (temporary) → Community created strategies via Factor Studio

As the public strategy space matures, the `app` subdomain will host just the public strategies.
{% endhint %}

## Features

* **Access To Unlimited Permissionless Strategies:** With no limitations on what DeFi strategies can be built on [Factor Studio](/factor-studio/factor-studio), Discover users are able to engage with any public community built strategies.
* **Discover The Best Opportunities:** Discover provides curated lists of strategies with more advanced sorting tools and data for users to uncover the most suitable opportunities.
* **Safety & Risk Metrics:** Every strategy on Discover comes equipped with critical safety information derived from a combination of factors such as token liquidity, protocol audits, etc.

### **Coming Soon**

* **Community Driven Insights:** Discover’s ratings and reviews feature enables users to learn from the experiences of other users thereby driving more informed decisions.
* **Compare Strategy Performance:** Discover’s comparison tool enables users to easily narrow down potential strategies by showcasing key strategy metrics side-by-side.
* **Personalized Profiles:** Pick up from where you left off with Discover’s Profile feature that enables customisable browsing preferences.


# Public Strategies User Guides

## Overview

Factor Discover now also supports deposits into community-created strategies via [Discover Pro](https://pro.factor.fi/).&#x20;

Discover a whole new world of strategies as anyone (including you) can easily [create a public strategy](/factor-studio/studio-pro/user-guide/public-strategy-creation) via Factor Studio and distribute it via Discover.&#x20;

Not interested in managing strategies? Just deposit into any of the user create strategies with one click on Discover.


# Deposit Into User Created Strategies

## Overview

Deposit into any user managed strategy with ease via Discover. Anyone can create and manage their own public strategy with [Studio](/factor-studio/studio-pro). As such, when you deposit into a Discover strategy, you're allowing your favourite strategist to manage your funds for you.

{% hint style="success" %}
**Separation of management & funds**

All strategies created via Studio are non-custodial with a smart contract handling all the deposited liquidity. Strategy Managers are only able to allocate strategy liquidity via the vault and never "own" any of the strategy deposits.
{% endhint %}

## One-click Deposits Into User Managed Strategies&#x20;

### Step 1: Find Your Optimal Strategy

You can search and filter through a list of community-curated strategies on [Discover Pro](https://pro.factor.fi/).&#x20;

Once you've found your perfect fit, you can select the strategy to open the strategy details.

{% hint style="info" %}
**Community Curated Strategies**

To safeguard users and highlight only the most relevant user created strategies, [Factor Discover](/factor-discover/factor-discover) only lists strategies which meet any of the following criteria:

* Strategy TVL ≥USD 10,000
* Strategy receives ≥10,000 [veFCTR](/governance/fctr-token#vefctr) votes via [Factor Scale](/governance/factor-scale)
* Strategy holds ≥10,000 [FCTR](/governance/fctr-token#fctr)
  {% endhint %}

### Step 2: Review Strategy Details

<figure><img src="/files/pGoqA8QEetwlWyGCmD0k" alt=""><figcaption></figcaption></figure>

Before depositing, review the strategy details as configured by the Strategy Manager. This includes the  strategy performance, safety configurations, as well as fees.

### Step 3: Select Deposit Token & Amount

<figure><img src="/files/KZrgdGctdMODggwqzNL2" alt=""><figcaption></figcaption></figure>

Once you've decided to add liquidity, you can navigate to the Deposit form on the top right of the page.

1. Select the token to deposit. The allowable tokens for deposit are configured by the Strategy Manager.
2. Input token deposit amount.

### Step 4: Deposit & Start Earning

<figure><img src="/files/g7VXRuZSeL1yJ7WtNlx4" alt=""><figcaption></figcaption></figure>

Click on the "Deposit" button to proceed with the deposit. If this is your first time interacting with the strategy, you will first have to approve the Strategy Contract which enables it to debit the token from your wallet.

Once your transaction has been executed by the network, you will be able to view your updated balance on the Strategy Details page.

<figure><img src="/files/QyV2xT2ALgNtvN96a8Aa" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Proof Of Deposit**

When depositing into any Factor strategies, you will receive vault specific tokens which represents your share in the vault. These vault tokens are returned and burned when you withdraw your allocated vault shares (which includes any vault returns/losses).
{% endhint %}


# Withdraw From User Created Strategies

## Overview

<figure><img src="/files/iepv0ySraMq0Zsk9nAr2" alt=""><figcaption></figcaption></figure>

Removing liquidity is as easy as inputting the amount of liquidity you would like to withdraw via the tab on the top right of the strategy Discover page.

<figure><img src="/files/w1cLBiZuHVcwF62BlTgL" alt=""><figcaption></figcaption></figure>

You can select which token you would prefer to receive from the withdrawal based on the Strategy Manager's configuration.&#x20;

The strategy will try to fulfil your token request if there is sufficient unutilized balance in the strategy. In case there is insufficient unutilized balance, the strategy will automatically trigger the exit strategy defined by the Strategy Manager. In such cases, the tokens received will be dependent on the exit strategy but you will always get a proportional share of all the strategy's assets.


# Leverage User Guides

## Overview

This section is meant to guide you along your DeFi leverage journey from helping you ask the right questions to how to open a leveraged position on the [Factor dapp](https://app.factor.fi/discover).

{% hint style="success" %}
**Leverage Strategy Explainer**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to intuitively understand how Factor combines multiple DeFi primitives into a single transaction to enable streamlined management of leveraged positions.
{% endhint %}

## Choosing The Right Strategy

The decision flow below guides you through the key considerations when determining whether a leverage strategy is suitable for your specific goals and expectations.&#x20;

{% tabs %}
{% tab title="Standard ERC20 Token" %}

<figure><img src="/files/2jKqRC6GIevZXdFarYxO" alt=""><figcaption><p>Standard leverage strategy</p></figcaption></figure>

#### Key Considerations

* **Expected Token Price Direction:** If you believe the token price will go up, open a **Leveraged Long** position to amplify gains from the price increases. Alternatively, if you believe the token price will go down, open a **Short Leveraged** position to profit from market downturns.
* **Borrowing Costs:** When supplying and borrowing tokens from lending protocols, take note of the borrowing costs. If Supply APY is greater than Borrow APY, you get even more yields for lending out your token. Alternatively, if Borrow APY is greater than Supply APY, there is a borrowing cost attached to the loan and this has to be compared to the expected leveraged strategy returns.
* **Lending Overhead:** Leveraged positions requires monitoring as they are susceptible to liquidation if the position becomes undercollateralized. Factor dapp displays your position's [Health Factor](/getting-started/glossary#health-factor) which enables easy management of your leverage position. While liquidation risks are low as long as a reasonable leverage multiplier is selected, we understand that this introduces another consideration and would recommend depositor's to explore pure lending strategies (on our partner dapps) if they would still like to generate yield without liquidation risks.
  {% endtab %}

{% tab title="Rebase/Yield Bearing Token (i.e. PT)" %}

<figure><img src="/files/tnMermejg6DoTOdJUSA1" alt=""><figcaption><p>PT leverage strategy</p></figcaption></figure>

#### Key Considerations

* **Base Asset Yield:** Only tokens which are yield-bearing or have a rebase mechanism can be utilized on Pendle. This is because Pendle splits the fixed income and variable yields portion of such tokens. Note that yield tokens can continue to be traded on the open market hence allowing users to enter or exit positions depending on market conditions.
* **PT Leverage Long Strategies:** As the base asset for PT-TKN accrues yield relative to the base asset, only leverage long strategies are profitable. That is, the value of your collateral (PT-TKN) approaches debt value (stable/base asset) at maturity resulting in a lower debt ratio. This also means **minimal liquidation risks**.
* **Fixed Yields:** By exchanging TKN for PT-TKN on Pendle, you are effectively locking in the fixed yields if you hold the PT-TKN to maturity. In effect, you are selling all base token variable yields (i.e. YT-TKN) until maturity in exchange for a fixed yield at maturity. In short, holding PT means you are shorting yield (i.e. expect yields to drop).
* **Variable Yields:** If you believe that the base token yields will increase, you can instead choose to buy YT representing the base token variable yield on Pendle. In order to turn a profit, all yield accrued until maturity must be more than the YT price when bought. You can effectively amplify your yield exposure by using the same capital amount to purchase more YT (as the yield portion of a token is generally much smaller than the principal).
* **Leveraging PT:** The APY from holding discounted PT tokens to maturity is realized at the point when the PT tokens were acquired via Pendle. As such, the timing of when you enter the market (i.e. add leverage to your position) determines the actual position returns.
* **Borrowing Costs:** When supplying and borrowing tokens from lending protocols, take note of the borrowing costs. If Supply APY is greater than Borrow APY, you get even more yields for lending out your token. Alternatively, if Borrow APY is greater than Supply APY, there is a borrowing cost attached to the loan and this has to be compared to the expected leveraged strategy returns.
  {% endtab %}
  {% endtabs %}

{% hint style="success" %}
**Strategy Performance & Simulations**

The interactive sheets below are meant help you gain an intuition of the potential strategy returns. Choose your tokens, add your strategy parameters, and see how Factor leverage strategies simplifies your DeFi journey.

* [Leverage Performance Modelling](/getting-started/strategy-explainers/leverage/leverage-performance-modelling)
* [Leverage Long Simulation](/getting-started/strategy-explainers/leverage/leverage-long-simulation)
* [Leverage Short Simulation](/getting-started/strategy-explainers/leverage/leverage-short-simulation)
  {% endhint %}

<details>

<summary>Related Concepts</summary>

* [Collateralized Lending & Borrowing](/factor-building-blocks/leverage/concepts/collateralized-lending-and-borrowing)
* [Looping](/factor-building-blocks/leverage/concepts/looping)

</details>

## Guides

The user guides below provides a step-by-step walkthrough of how to create and manage a leveraged position on the [Factor dApp](https://app.factor.fi/).&#x20;

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/drXKFRFpvCsGOZUD0a1s"><strong>Create A Leveraged Position</strong></a></td><td></td><td></td><td><a href="/pages/drXKFRFpvCsGOZUD0a1s">/pages/drXKFRFpvCsGOZUD0a1s</a></td></tr><tr><td><a href="/pages/Zcxf5g8RzcLijysx6tJP"><strong>Adjust Position Leverage</strong></a></td><td></td><td></td><td><a href="/pages/Zcxf5g8RzcLijysx6tJP">/pages/Zcxf5g8RzcLijysx6tJP</a></td></tr><tr><td><a href="/pages/1ASCXOgtgRYRsHcLPDhP"><strong>Add Collateral To Position</strong></a></td><td></td><td></td><td><a href="/pages/1ASCXOgtgRYRsHcLPDhP">/pages/1ASCXOgtgRYRsHcLPDhP</a></td></tr><tr><td><a href="/pages/kagdDK11fRbzc4ROWAQ4"><strong>Withdraw Collateral From Position</strong></a></td><td></td><td></td><td><a href="/pages/kagdDK11fRbzc4ROWAQ4">/pages/kagdDK11fRbzc4ROWAQ4</a></td></tr><tr><td><a href="/pages/xck1WgWS8c97HoCRasvX"><strong>Repay Position Debt</strong></a></td><td></td><td></td><td><a href="/pages/xck1WgWS8c97HoCRasvX">/pages/xck1WgWS8c97HoCRasvX</a></td></tr></tbody></table>


# Create A Leveraged Position

## Introduction

[Factor Studio](/factor-studio/factor-studio) enables the creation of leveraged strategies through combining multiple DeFi primitives (see Related Concepts below) into a single transaction:

1. Supply initial <mark style="color:green;">asset</mark> token to lending protocol (i.e. Silo, Aave, etc.)
2. Flash loan <mark style="color:red;">debt</mark> token from Balancer
3. Swap flash loaned <mark style="color:red;">debt</mark> token for <mark style="color:green;">asset</mark> token on OpenOcean
4. Add swapped <mark style="color:green;">asset</mark> token to lending protocol
5. Borrow <mark style="color:red;">debt</mark> token from lending protocol to repay flash loan from Balancer
6. Repay Balancer flash loan using borrowed <mark style="color:red;">debt</mark> token

By batching the generalized steps above, users get access to up to **multiple times leveraged exposure (maximum determined by underlying lending pool)** on their initial position. The flash loaned value is added to the position's collateral as <mark style="color:green;">asset</mark> token while the position incurs interest payments on the <mark style="color:red;">debt</mark> token equalling the flash loaned value.

This allows users to take either a:

* **Long position (**:ox:**):** Supply <mark style="color:green;">asset</mark> token which you believe will increase in value relative to the <mark style="color:red;">debt</mark> token thereby amplifying your exposure to any <mark style="color:green;">asset</mark> gains. For example, by taking a leveraged WETH/USDC position, the value of the debt (i.e. USDC) to the collateral (i.e. WETH) decreases if WETH increases in price relative to USDC.
* **Short position (**:bear:**):** Borrow <mark style="color:red;">debt</mark> token which you believe will decrease in value relative to the <mark style="color:green;">asset</mark> token thereby reducing your <mark style="color:red;">debt</mark> obligations. For example, by taking a leveraged USDC/WETH position, the value of the debt (i.e. WETH) to the collateral (i.e. USDC) decreases if WETH decreases in price relative to USDC.

{% hint style="success" %}
**Leverage Strategy Explainers**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.
{% endhint %}

<details>

<summary>Related Concepts</summary>

* [Collateralized Lending & Borrowing](/factor-building-blocks/leverage/concepts/collateralized-lending-and-borrowing) -> Borrowing <mark style="color:red;">debt</mark> token from lending protocols by collateralizing <mark style="color:green;">asset</mark> token.
* [Flash Loan](/factor-building-blocks/flash-loan/concepts/flash-loan) -> Uncollateralized lending that enables the creation of leverage.
* [Market Orders ](/factor-building-blocks/swap/concepts/market-orders)-> Instant swaps of tokens on Decentralized Exchanges.

</details>

{% hint style="info" %}
**Leverage Fees**

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is [shared with veFCTR ](/governance/fctr-token/faq-tokenomics#vefctr)holders to encourage greater community governance.

The schedule of fees can be viewed [here](/governance/factordao/platform-fees#fee-structure).
{% endhint %}

## Amplify Your DeFi Gains

### Step 1: Select A Leverage Strategy

Navigate to[ Factor Discover](https://app.factor.fi/discover) where you will be able to sort and filter through a myriad of `Long`/`Short` curated strategies. This includes lending protocols, strategy types, projected APYs, vault protocol rewards, and much more.

{% hint style="success" %}
Take advantage of [Factor Boost](/governance/factor-boost) (:rocket:) and [Factor Scale](/governance/factor-scale) (:scales:) incentivized vaults to get even more profits!
{% endhint %}

<figure><img src="/files/5pK8tEC2UE7vclBNF8PJ" alt=""><figcaption><p>Discover DeFi leverage strategies</p></figcaption></figure>

Once you have identified your preferred strategy, select the "Expand" button to get started on your leverage journey.

### Step 2: Create a leveraged position

By creating a position, you are configuring the leverage parameters which best suits your personal risk to reward tolerance. Factor enables you to create multiple positions per strategy whose parameters are editable.&#x20;

<figure><img src="/files/Kx0bUgAS1ihQ9cNfPbjG" alt=""><figcaption><p>Open strategy position</p></figcaption></figure>

The Factor dApp enables you to adjust the following:

* **Select initial collateral amount (*****B*****):** Specify the amount of collateral (i.e. supply/<mark style="color:green;">asset</mark> token) that will be deposited into the leverage vault. This is the amount of <mark style="color:green;">asset</mark> tokens which will be debited from your wallet to fund the leveraged position.
* **Select leverage multiplier (*****C*****):** Specify the amount of leverage that you are willing to take for the position. The higher the leverage, the greater the potential gains OR losses. **A 2x leverage means your leveraged position value is twice that of your initial collateral amount**.

With the above parameters configured, you can then proceed to create the position by clicking on the "Open Position" button. As your personalized position parameters will be stored on-chain, this will require a signature via your connected web3 wallet (i.e. MetaMask, etc.).

### Step 3: Approve leverage contract

With the position created, you will then need to approve a spending amount for the Factor strategy contract. This allows the strategy contract to debit the <mark style="color:green;">asset</mark> token (i.e. collateral) from your wallet for the purposes of funding the leveraged strategy. This is an on-chain transaction which requires a signature.

<figure><img src="/files/vCNlEhboJg40mxJgsizM" alt=""><figcaption><p>Approve Factor contract</p></figcaption></figure>

### Step 4: Add liquidity to your leveraged position

Once approval has been given, you can then start to earn yields by adding liquidity to your newly created position!&#x20;

By signing the deposit transaction request, Factor executes the steps outlined in the [Introduction](#introduction) that adds liquidity and therefore leverage to your newly created active position.

<figure><img src="/files/sHTug729xUPpr280c9s9" alt=""><figcaption><p>Add leverage to position </p></figcaption></figure>

### Step 5: View your active position

Factor dApp makes it easy for you to view and manage the performance of your leveraged position.

<figure><img src="/files/1BfVEowfF1mroabRD4CV" alt=""><figcaption><p>Position summary</p></figcaption></figure>

The leverage position dashboard consists of the following metrics:

* **Net Value:** The USD value the position's collateral minus the position's debt.
* **Liquidation Price:** The <mark style="color:green;">asset</mark> token price at which the leveraged position will be exposed to liquidation risks.&#x20;
* [**Health Factor**](/getting-started/glossary#health-factor)**:** The lower the Health Factor, the higher the likelihood of liquidation with a Health Factor of 1 indicating that the position is at risk of being liquidated.
* **Leverage Multiplier:** The additional borrow value as a ratio of the collateralized <mark style="color:green;">asset</mark> value (i.e. the multiplier between a position's total collateralized + borrowed <mark style="color:green;">assets</mark> against the collateralized <mark style="color:green;">asset</mark> amount).

In addition to the position specific factors above, you can also view the following strategy information:

* **Projected Yield:** The estimated percentage returns which comprising the strategy APY, [Factor Boost ](/governance/factor-boost)APY, and [Factor Scale](/governance/factor-scale) APY.
* **Supply APY:** The yield generated from supplying <mark style="color:green;">asset</mark> token as collateral to the underlying lending protocol.&#x20;
* **Borrow APY:** The interest owed on the <mark style="color:red;">debt</mark> token amount which was borrowed from the underlying lending protocol.


# Adjust Position Leverage

## Introduction

You can easily adjust the amount of leverage for your position via the position management dashboard. This enables you to either:

* **Increase leverage:** Gain greater exposure to the <mark style="color:green;">asset</mark> token if you believe the value of the <mark style="color:green;">asset</mark> token to <mark style="color:red;">debt</mark> token will increase.
* **Decrease leverage:** Decrease the likelihood of liquidation if you still want to maintain leveraged exposure to <mark style="color:green;">asset</mark> token but believe the value of the <mark style="color:green;">asset</mark> token to <mark style="color:red;">debt</mark> token will decrease in the short term.

With the Factor dApp,  you can adjust your position's leverage in just 2 clicks!

{% hint style="success" %}
**Leverage Strategy Explainers**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.
{% endhint %}

{% hint style="info" %}
**Leverage Fees**

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is [shared with veFCTR ](/governance/fctr-token/faq-tokenomics#vefctr)holders to encourage greater community governance.

The schedule of fees can be viewed [here](/governance/factordao/platform-fees#fee-structure).
{% endhint %}

## Change Your Position's Leverage

### Step 1: Navigate to the target position

You can access your position via your personalized [dashboard](https://app.factor.fi/strategies/dashboard).

<figure><img src="/files/kjRznsCpAoPXpZSkQ9hp" alt=""><figcaption><p>Discover overview</p></figcaption></figure>

Upon clicking the "Expand" button, you can then select the target position. Note that the following page displays all the positions created for a particular strategy.

<figure><img src="/files/ZgKMcjPfXJftijKLHUKn" alt=""><figcaption><p>Select a position</p></figcaption></figure>

### Step 2: Select the new leverage amount

Once on the position management dashboard, you can then select the "Change Leverage" tab to bring up the leverage picker.&#x20;

<figure><img src="/files/HIIoU8aHqztlV6SUYvTX" alt=""><figcaption><p>Select the new leverage amount</p></figcaption></figure>

The leverage slider will be loaded with the position's current leverage multiplier. By using the slider, you can adjust the position's leverage and also view the projected position metrics in real time.

### Step 3: Confirm leverage adjustment

With a new leverage multiplier selected, you can execute the changes by selecting the "Change Leverage" button. This will require a signature via the connected wallet as Factor updates the position's configurations and executes the multi-step process on the underlying protocols.

### Step 4: View new collateral amount

<figure><img src="/files/wx5YqBrhqz4Imq1j8M56" alt=""><figcaption><p>Update position metrics</p></figcaption></figure>

Once the collateral addition has been executed, notice that the position's key metrics have been adjusted according to the new leverage multiplier selected:&#x20;

* **Net Value:** Minimal changes due to the incremental value of <mark style="color:red;">debt</mark> being converted to <mark style="color:green;">asset</mark>.
* **Collateral Value:** Increases by the value of the additional leverage multiplier selected multiplied by the initial <mark style="color:green;">asset</mark> provided.
* **Debt Value:** Increases by the additional value of debt required to achieve the increased leveraged multiplier.
* [**Health Factor**](/getting-started/glossary#health-factor)**:** Decreases as the collateral value decreases relative to debt value (i.e. more leveraged position).
* **Liquidation Price:** For this long position, the liquidation price increases as the position's leverage increases.


# Add Collateral To Position

## Introduction

You can easily add collateral to your leveraged position via the position management dashboard. By adding more collateral to the position, you are ensuring that the position does not become undercollateralized and therefore reduces the position's liquidation risks.&#x20;

{% hint style="info" %}
**Position Leverage Multiplier**

Note that the adding of collateral only increases the position's collateral amount. Consequently, the position's leverage multiplier is reduced accordingly with the position's [Health Factor](/getting-started/glossary#health-factor) also seeing a corresponding increase.
{% endhint %}

{% hint style="success" %}
**Leverage Strategy Explainers**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.
{% endhint %}

## Increase Your Position's Collateral

{% hint style="info" %}
**Leverage Fees**

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is [shared with veFCTR ](/governance/fctr-token/faq-tokenomics#vefctr)holders to encourage greater community governance.

The schedule of fees can be viewed [here](/governance/factordao/platform-fees#fee-structure).
{% endhint %}

## Increase Your Position's Collateral

### Step 1: Navigate to the target position

You can access your position via your personalized [dashboard](https://app.factor.fi/strategies/dashboard).

<figure><img src="/files/kjRznsCpAoPXpZSkQ9hp" alt=""><figcaption><p>Discover overview</p></figcaption></figure>

Upon clicking the "Expand" button, you can then select the target position. Note that the following page displays all the positions created for a particular strategy.

<figure><img src="/files/ZgKMcjPfXJftijKLHUKn" alt=""><figcaption><p>Select a position</p></figcaption></figure>

### Step 2: Select the amount of collateral to add

Once on the position management dashboard, you can then select the "Add Collateral" tab specify the additional amount of <mark style="color:green;">asset</mark> token to be added to the position.

<figure><img src="/files/wxUYljKVZwPp3jX95q3S" alt=""><figcaption><p>Input the amount of additional collateral</p></figcaption></figure>

### Step 3: Approve additional collateral amount

To add additional collateral to the position, the strategy contract will require authorization to debit the <mark style="color:green;">asset</mark> token from your wallet. You will be prompted to sign an approval request if further spending allowance is required by the strategy contract.

### Step 4: Confirm the collateral addition

With an additional collateral amount selected, you can execute the changes by selecting the "Add Collateral" button. This will require a signature via the connected wallet as Factor updates the position's configurations and executes the multi-step process on the underlying protocols.

<figure><img src="/files/3ym4kVjUKFEwAed4EPBX" alt=""><figcaption><p>Add collateral to the position</p></figcaption></figure>

### Step 5: View new collateral amount

<figure><img src="/files/Ti1hY7EWZUVe7bnFkkIu" alt=""><figcaption><p>Updated position metrics</p></figcaption></figure>

Once the collateral addition has been executed, notice that the position's key metrics have been adjusted according to the additional <mark style="color:green;">asset</mark> token added as collateral.

* **Net Value:** Increases by the USD value of the additional collateral.
* **Collateral Value:** Increases by the USD value of the additional collateral.
* [**Health Factor**](/getting-started/glossary#health-factor)**:** Increases as the collateral value increases relative to debt value (which is unchanged).
* **Liquidation Price:** For this long position, the liquidation price decreases as the position's leverage decreases.
* **Leverage Multiplier:** Viewable on the "Change Leverage" tab, the position's leverage decreases as there are more <mark style="color:green;">asset</mark> tokens collateralizing the same amount of debt.


# Withdraw Collateral From Position

## Introduction

You can easily remove collateral from your leveraged position via the position management dashboard. By removing collateral from the position, you are effectively reducing the value of the collateral backing the current position's debt. As such, collateral withdrawals should be handled with care so as to avoid unexpected liquidations due to undercollateralization of the leveraged position.

{% hint style="info" %}
**Position Leverage Multiplier**

Note that the removal of collateral only reduces the position's collateral amount. Consequently, the position's leverage multiplier is increased accordingly with the position's [Health Factor](/getting-started/glossary#health-factor) also seeing a corresponding decrease.
{% endhint %}

{% hint style="success" %}
**Leverage Strategy Explainers**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.
{% endhint %}

## Remove Collateral Backing Your Position

{% hint style="info" %}
**Leverage Fees**

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is [shared with veFCTR ](/governance/fctr-token/faq-tokenomics#vefctr)holders to encourage greater community governance.

The schedule of fees can be viewed [here](/governance/factordao/platform-fees#fee-structure).
{% endhint %}

## Remove Collateral Backing Your Position

### Step 1: Navigate to the target position

You can access your position via your personalized [dashboard](https://app.factor.fi/strategies/dashboard).

<figure><img src="/files/kjRznsCpAoPXpZSkQ9hp" alt=""><figcaption><p>Discover overview</p></figcaption></figure>

Upon clicking the "Expand" button, you can then select the target position. Note that the following page displays all the positions created for a particular strategy.

<figure><img src="/files/ZgKMcjPfXJftijKLHUKn" alt=""><figcaption><p>Select a position</p></figcaption></figure>

### Step 2: Select the amount of collateral to remove

Once on the position management dashboard, you can then select the "Withdraw" tab to specify the amount of <mark style="color:green;">asset</mark> token to be removed from the position.

<figure><img src="/files/wVsqJSpj4UbULtvGVUlM" alt=""><figcaption><p>Withdraw collateral</p></figcaption></figure>

{% hint style="info" %}
**Max Safe Withdraw**

The Factor dApp provides an estimated maximum safe withdrawal amount which ensures that the leveraged position does not become undercollateralized upon removal of <mark style="color:green;">asset</mark> token.

As markets for the token pair can be volatile, please consider adding in some buffer when withdrawing collateral to reduce liquidation risks.
{% endhint %}

### Step 3: Confirm the collateral withdrawal

With the collateral withdrawal amount selected, you can execute the changes by selecting the "Withdraw" button. This will require a signature via the connected wallet as Factor updates the position's configurations and executes the multi-step process on the underlying protocols.

### Step 4: View new collateral amount

<figure><img src="/files/RW3vy1s2tVvtG2jitWgP" alt=""><figcaption></figcaption></figure>

Once the collateral withdrawal has been executed, notice that the position's key metrics have been adjusted according to the <mark style="color:green;">asset</mark> token amount that was removed.

* **Net Value:** Decreases by the USD value of the collateral removed.
* **Collateral Value:** Decreases by the USD value of the collateral removed.
* [**Health Factor**](/getting-started/glossary#health-factor)**:** Decreases as the collateral value decreases relative to debt value (which is unchanged).
* **Liquidation Price:** For this long position, the liquidation price increases as the position's leverage increases.
* **Leverage Multiplier:** Viewable on the "Change Leverage" tab, the position's leverage increases as there are less <mark style="color:green;">asset</mark> tokens collateralizing the same amount of debt.


# Repay Position Debt

## Introduction

You can easily repay your position's debt via the position management dashboard. By repaying a position's debt, you are reducing the amount of debt accrued to the position and thereby reducing the risk of liquidation.

{% hint style="info" %}
**Position Leverage Multiplier**

Note that the repayment of debt only reduces the position's debt amount. Consequently, the position's leverage multiplier is decreased accordingly with the position's [Health Factor](/getting-started/glossary#health-factor) also seeing a corresponding increase.
{% endhint %}

{% hint style="success" %}
**Leverage Strategy Explainers**

Please refer to the [Leverage Strategy Explainer](/getting-started/strategy-explainers/leverage) if you would like to understand the leverage process and how Factor streamlines the management of leveraged positions.
{% endhint %}

## Reduce Your Position's Debt

{% hint style="info" %}
**Leverage Fees**

Factor charges a small transaction-based fee that supports the development of the Factor ecosystem. 50% of the protocol's ongoing revenue is [shared with veFCTR ](/governance/fctr-token/faq-tokenomics#vefctr)holders to encourage greater community governance.

The schedule of fees can be viewed [here](/governance/factordao/platform-fees#fee-structure).
{% endhint %}

## Reduce Your Position's Debt

### Step 1: Navigate to the target position

You can access your position via your personalized [dashboard](https://app.factor.fi/strategies/dashboard).

<figure><img src="/files/kjRznsCpAoPXpZSkQ9hp" alt=""><figcaption><p>Discover overview</p></figcaption></figure>

Upon clicking the "Expand" button, you can then select the target position. Note that the following page displays all the positions created for a particular strategy.

<figure><img src="/files/ZgKMcjPfXJftijKLHUKn" alt=""><figcaption><p>Select a position</p></figcaption></figure>

### Step 2: Specify amount of debt to repay

Once on the position management dashboard, you can then select the "Repay" tab to specify the amount of <mark style="color:red;">debt</mark> token to be repaid.

<figure><img src="/files/FQVBaOSpsiPsYuARMNwT" alt=""><figcaption><p>Repay debt</p></figcaption></figure>

### Step 3: Approve debt to be repaid

To repay your position's debt, the strategy contract will require authorization to debit the <mark style="color:red;">debt</mark> token from your wallet. You will be prompted to sign an approval request if further spending allowance is required by the strategy contract.

### Step 4: Confirm the repayment

<figure><img src="/files/rwedqOCOR5zNEwarKxGO" alt=""><figcaption><p>Execute repayment</p></figcaption></figure>

With the repayment amount selected, you can execute the changes by selecting the "Repay More" button. This will require a signature via the connected wallet as Factor updates the position's configurations and executes the multi-step process on the underlying protocols.

### Step 5: View new collateral amount

<figure><img src="/files/sXRdcb1Y1oK5q1GN8aOc" alt=""><figcaption></figcaption></figure>

Once the repayment has been executed, notice that the position's key metrics have been adjusted according to the <mark style="color:red;">debt</mark> token that was repaid:

* **Net Value:** Increases by the amount of debt repaid.
* **Debt Value:** Decreases by the USD value of the <mark style="color:red;">debt</mark> tokens repaid.
* [**Health Factor**](/getting-started/glossary#health-factor)**:** Increase as the debt value decreases relative to collateral value (which is unchanged).
* **Liquidation Price:** For this long position, the liquidation price decreases as the position's leverage decreases.
* **Leverage Multiplier:** Viewable on the "Change Leverage" tab, the position's leverage decreases as the position's debt obligations are reduced.


# Yield User Guides

The user guides below provides a step-by-step walkthrough of how to create a yield position on the [Factor dApp](https://app.factor.fi/). Please refer to the [Yield Strategy Explainer ](/getting-started/strategy-explainers/yield)if you would like to understand how Factor combines multiple DeFi primitives into a single transaction to enable streamlined management of leveraged positions.

{% hint style="success" %}
**Auto-Compound Strategy Explainer**

Please refer to the [Yield Strategy Explainer ](/getting-started/strategy-explainers/yield)if you would like to intuitively understand how Factor combines multiple DeFi primitives into a single transaction to enable streamlined management of auto-compounding positions.
{% endhint %}

{% hint style="success" %}
**Strategy Performance & Simulations**

The interactive sheets below are meant help you gain an intuition of the potential strategy returns. Choose your tokens, add your strategy parameters, and see how Factor Auto-Compound strategies simplifies your DeFi journey.

* [Yield Performance Modelling](/getting-started/strategy-explainers/yield/yield-performance-modelling)
  {% endhint %}

<details>

<summary>Related Concepts</summary>

* [Yield Farming](/factor-building-blocks/yield/concepts/yield-farming)
* [Yield Aggregators](/factor-building-blocks/yield/concepts/yield-aggregators)

</details>

## Guides

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/xhkd5IfvhaNfBatR4X6a"><strong>Auto-compound Your Yields</strong></a></td><td></td><td></td><td><a href="/pages/xhkd5IfvhaNfBatR4X6a">/pages/xhkd5IfvhaNfBatR4X6a</a></td></tr></tbody></table>


# Auto-compound Your Yields

## Introduction

[Factor Studio](/factor-studio/factor-studio) enables yield farmers to amplify their yield rewards while reducing their liquidity management overheads through automated strategy vaults. Yield farmers just need to **deposit once into a yield strategy vault and watch their yields auto-compound**. Yield strategy vaults periodically reinvests any accrued liquidity incentives through conveniently batching the following steps for each harvest event:

1. Harvest (i.e. claim) farming rewards accrued to the position
2. Swap reward tokens to pool tokens
3. Provide pool tokens as additional liquidity
4. Stake additional liquidity to earn compounded rewards

Note that a higher harvest frequency amplifies the effects of compounding while minimizing the depositor's exposure to reward tokens.

{% hint style="info" %}
**Yield Strategy Explainers**

Please refer to the [Yield Strategy Explainer](/getting-started/strategy-explainers/yield) if you would like to understand the yield auto-compounding process and how Factor streamlines the management of liquidity positions.
{% endhint %}

<details>

<summary>Related Concepts</summary>

* [Yield Farming](/factor-building-blocks/yield/concepts/yield-farming) -> Providing liquidity to protocols which provide significant liquidity incentives

</details>

## Auto-compound Your Yields

### Step 1: Select A Yield Farming Strategy

Navigate to[ Factor Discover](https://app.factor.fi/discover) where you will be able to sort and filter through a myriad of `Yield` curated strategies. This includes yield protocols, strategy types, projected APYs, vault protocol rewards, and much more.

{% hint style="success" %}
Take advantage of [Factor Boost](/governance/factor-boost) (🚀) and [Factor Scale](/governance/factor-scale) (⚖️) incentivized vaults to get even more profits!
{% endhint %}

<figure><img src="/files/JHvL024f7o7GP7hatL7e" alt=""><figcaption><p>Discover DeFi yield strategies</p></figcaption></figure>

Once you have identified your preferred strategy, select the "Deposit" button to get started on your automated yield farming journey.

### Step 2: Add liquidity to the underlying protocol

Factor yield strategies take advantage of DeFi's modularity to automate liquidity management for underlying liquidity protocols. As such, liquidity must first be deposited into the underlying protocol's contract.

<figure><img src="/files/RUP5vnVtgY0uZImKLfSG" alt=""><figcaption><p>Deposit liquidity to the relevant external protocol pool</p></figcaption></figure>

The Factor dApp enables convenient access to the relevant pool via the link at the bottom right of the deposit interface. This will open the corresponding protocol dApp in a new tab whereupon you can follow the protocol specific instructions for depositing liquidity into the target pool.

Once liquidity has been successfully added into the underlying protocol, you should be able to see the LP token (i.e. token representing the protocol's liquidity) balance on the Factor interface.

<figure><img src="/files/Yop4NjngBTj88RtPFpCY" alt=""><figcaption><p>LP token balance is updated</p></figcaption></figure>

### Step 3: Approve yield strategy vault

By clicking on the "Deposit" button, you will then be required to approve a spending amount for the yield strategy contract. This enables the yield contract to debit the recently acquired LP token from your wallet so that it can manage your yield harvests. This is an on-chain transaction which requires a signature from the connected web3 wallet.

### Step 4: Deposit into the yield strategy <a href="#step-4-add-liquidity-to-your-leveraged-position" id="step-4-add-liquidity-to-your-leveraged-position"></a>

Once approval has been given, you can then start to auto-compound your yields by adding liquidity to the yield strategy vault!

Following the approval, you will then be requested to sign the transaction request. Factor deposits your LP tokens into the strategy vault which then makes it eligible to be included in the next harvesting cycle (as outlined in the [Introduction](#introduction)).

<figure><img src="/files/HPFOiWLDrSvbMJq6679y" alt=""><figcaption><p>Deposit into the yield vault</p></figcaption></figure>

### Step 5: View your active position <a href="#step-5-view-your-active-position" id="step-5-view-your-active-position"></a>

Upon deposit confirmation, you can view your updated yield vault balance on the Factor dApp.

<figure><img src="/files/zVJc0k1QIkK7Fb7tBfXR" alt=""><figcaption><p>Yield vault position balance</p></figcaption></figure>


# PT User Guides

The user guides below provides a step-by-step walkthrough of how to supercharge your PT yields by utilizing various Factor Strategies that are easily accessible on the [Factor dApp](https://app.factor.fi/).&#x20;

{% hint style="success" %}
**PT Strategies Explained**

Please refer to the [PT Strategy Explainer](/getting-started/strategy-explainers/pt-strategies) if you would like a deeper dive into PT mechanics and how best to manage your positions for optimized PT yields.
{% endhint %}

{% hint style="success" %}
**Strategy Performance & Simulations**

The interactive sheets below are meant help you gain an intuition of the potential strategy returns. Choose your tokens, add your strategy parameters, and see how Factor PT strategies simplifies your DeFi journey.

* [Leverage Long PT Simulation](/getting-started/strategy-explainers/pt-strategies/leverage-long-pt-simulation)
  {% endhint %}

## Guides

<table data-view="cards"><thead><tr><th></th><th data-hidden></th><th data-hidden></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><a href="/pages/3xxZ1xyG17TyUjZ4zleO"><strong>Redeem Your PT</strong></a></td><td></td><td></td><td><a href="/pages/3xxZ1xyG17TyUjZ4zleO">/pages/3xxZ1xyG17TyUjZ4zleO</a></td></tr></tbody></table>


# Redeem Your PT

## Introduction

Once the PT's maturity date arrives, you can now claim your fixed rewards by converting your matured PT tokens back into the base asset at a 1:1 ratio. This means that you are finally realizing the fixed yield from holding PT as the price of the PT acquired at a discount is now equivalent to the base asset.

As matured PTs no longer generate any yields, it is recommended that you redeem your PT as soon as it matures. This will then provide you the option to either:

* Reinvest your capital into subsequent future-dated PTs
* Hold onto the yield-bearing asset and accrue more yields

{% hint style="success" %}
**PT Strategies Explained**

Please visit our [PT Strategies Explainer](/getting-started/strategy-explainers/pt-strategies) if you would like a deeper dive into PT mechanics and how best to manage your positions.
{% endhint %}

## Realizing Your PT Returns

Factor offers various strategy types that enable you to amplify your PT gains.

{% tabs %}
{% tab title="Yield" %}

1. Visit the [Factor Discover](https://app.factor.fi/) page and search for your PT Yield Strategy.
2. On the strategy page, you will be able to find a withdraw option to the right of the page.\
   ![](/files/c8YEMp1NpL6ZdyWcP22o)<br>
3. Withdraw all your matured PT from Factor.
4. Visit the [Pendle Trade page](https://app.pendle.finance/trade/markets) and search for your PT under the "Inactive" tab.\
   &#x20;![](/files/CcBih9QvIrY5Px2sb3a6)
5. You can then choose to redeem or rollover your PT to a later offering.\
   ![](/files/0NgZQ3X4yrjcUvMc3AQO)
   {% endtab %}

{% tab title="Leverage" %}

1. Visit the [Factor Discover](https://app.factor.fi/) page and search for your PT Leverage Strategy.
2. Select the position to close and you will be able to see a "Close Position" option.\
   ![](/files/mIt19gLl8KQvoLdCvmys)
3. As your PT has now matured, it is recommended that you **select the debt asset** as the token to receive when closing the position. This will save you the additional step of having to redeem your PT on Pendle.
4. Once you have selected an asset and a slippage tolerance, you can then simulate the expected output.
5. You can then proceed to claim your PT value by clicking on the "Close Position" button.\
   ![](/files/n6KMUWvHWPa7BUl4xF43)
   {% endtab %}
   {% endtabs %}


# APY Calculations

{% hint style="info" %}
**APY vs APR**

For convenience, Factor Studio utilizes both Annual Percentage Yield (APY) and Annual Percentage Rate (APR) depending on the context of the earnings generated.&#x20;

* **Annual Percentage Yield:** The rate of return (i.e. interest/yield) per year that takes into account any earnings that are compounded within the year.
* **Annual Percentage Rate:** The rate of return (i.e. interest/yield) per year.
  {% endhint %}

## Total APY

$$
totalAPY=strategyAPY+scaleAPY+boostAPY
$$

The `totalAPY` provides an estimate of the yearly compounded returns that a depositor will receive by depositing into the specified strategy vault.  The `totalAPY` is the sum of APYs generated by the strategy as well as protocol rewards which are allocated to the vault via [Factor Scale](/governance/factor-scale) and [Factor Boost](/governance/factor-boost).

## Strategy/Net APY

The `strategyAPY` is the estimated yearly compounded returns that arise from the execution of the automated strategy. Consequently, the APY calculations differs depending on the strategy type.

### Leverage

$$
strategyNetValue\_{USD} = strategyAssetValue\_{USD} - strategyDebtValue\_{USD}
$$

$$
strategyAPY = \frac{(\text{strategyAssetValue}*{USD}\times{\text{supplyAPY}})-(\text{strategyDebtValue}*{USD}\times{\text{borrowAPY}})}{strategyNetValue\_{USD}}
$$

For [leverage strategies](/getting-started/strategy-explainers/leverage), the `strategyAPY` takes into account the costs of borrowing as well as any interest accrued from lending. The displayed `strategyAPY` is calculated based on the maximum leverage for that strategy:

$$
strategyAPY = \frac{(\text{strategyAssetValue}*{USD}\times{\text{supplyAPY}})-(\text{strategyMaxDebtValue}*{USD}\times{\text{borrowAPY}})}{strategyNetValue\_{USD}}
$$

$$
strategyAPY = \frac{(\text{strategyAssetValue}*{USD}\times{\text{supplyAPY}})-(\text{strategyAssetValue}*{USD}\times{LTV\_{max}}\times{\text{borrowAPY}})}{strategyNetValue\_{USD}}
$$

The `positionAPY` for leverage strategies utilizes a similar approach where the leverage multiplier affects the position's `strategyAssetValue` and `strategyDebtValue`:

$$
positionAPY = \frac{(\text{positionAssetValue}*{USD}\times{\text{supplyAPY}})-(\text{positionDebtValue}*{USD}\times{\text{borrowAPY}})}{positionNetValue\_{USD}}
$$

### Yield

$$
strategyAPY=\left(1+\frac{protocolAPR}{n}\right)^n-1
$$

For [yield strategies](/getting-started/strategy-explainers/yield), the `strategyAPY` is calculated by compounding the underlying protocol's APR by the frequency of reinvestments, $$n$$.

$$
positionAPY=\left(1+\frac{protocolAPR}{n}\right)^n-1
$$

As all liquidity within a yield strategy vault is fungible, the `strategyAPY` also represents the estimated yearly compounded returns for any positions within the strategy (i.e. the `positionAPY`).

## Factor Scale APY

[Factor Scale](/governance/factor-scale) emission rewards are linearly distributed as [esFCTR](/governance/fctr-token#esfctr) based on the proportion of votes that each strategy vault receives in the previous epoch (i.e. weekly) voting period. The total amount of esFCTR allocated as epoch rewards to Factor Scale vaults depends on the [emission milestones](/governance/factor-scale#fctr-emission-milestones) reached.

As Factor Scale emissions are only allocated to deposits within the epoch, the `scaleAPR` is calculated using information from the active epoch. Note that as there is a 90 day linear vesting schedule for esFCTR, Factor Scale rewards are not auto-compounded by the strategy vaults.

$$
vaultVotesProportion = \frac{voteCount\_{vault}}{voteCount\_{total}}
$$

$$
scaleRewards\_{annual} = scaleRewards\_{second}\times{secondsInYear}
$$

$$
scaleAPR = \frac{vaultVotesProportion\times{scaleRewards\_{annual}}}{scaleVaultsTVL\_{USD}}
$$

$$
scaleAPR = \frac{voteCount\_{vault}}{voteCount\_{total}}\times\frac{scaleRewards\_{annual}}{scaleVaultsTVL\_{USD}}
$$

The `scaleAPY` assumes compounding upon vesting of esFCTR (i.e. 90 days esFCTR vesting which equates to`n` ≈ 4):

$$
scaleAPY=\left(1+\frac{scaleAPR}{n}\right)^n-1
$$

## Factor Boost APY

[Factor Boost](/governance/factor-boost) rewards are distributed linearly over the period of 7 days from when the reward tokens are deposited. As Factor Boost rewards are only allocated to deposits within the Boost period, the `boostAPR` is calculated using information from the active boost period.&#x20;

$$
boostRewards\_{annual} = boostRewards\_{second}\times{secondsInYear}
$$

$$
boostAPR = \frac{boostRewards\_{second}}{boostVaultsTVL\_{USD}}\times{secondsInYear}
$$

The `boostAPY` assumes weekly compounding (i.e. `n` = 52):

$$
boostAPY=\left(1+\frac{boostAPR}{n}\right)^n-1
$$


# Factor Operated Strategies

## Overview

At Factor, we are always on the lookout for strategy ideas and other ways to contribute towards the whole permissionless asset management ecosystem. This includes operating public strategies via [Factor Studio](/factor-studio/factor-studio).

Factor Operated Strategies are meant to showcase how various tokens and protocols can be combined into a single strategy. Whether you're a Strategists looking for references or a Depositor wanting to understand where the yield comes from, this section details the inner workings of various strategy types.

## Factor Strategy Fees

Factor operated strategies charges the following fees to cover the operational costs:

* Yield Strategies
  * 0.1% Deposit
  * 0.1% Withdrawal
* Trading Strategies
  * 10% Performance

## Factor Operation Addresses

* **Operations:** [0x19809509a4455C25a44f9ffa8faF5349166f39c7](https://arbiscan.io/address/0x19809509a4455c25a44f9ffa8faf5349166f39c7)
  * Signatory requirements: 1 of 3 signatures
    * Signatory 1: [0xe4c377736A04C0b141469a80047018169b91bFeE](https://arbiscan.io/address/0xe4c377736A04C0b141469a80047018169b91bFeE)
    * Signatory 2: [0x0fC273Ad74f1Ee90286e30b510cADa9283cDC199](https://arbiscan.io/address/0x0fC273Ad74f1Ee90286e30b510cADa9283cDC199)
    * Signatory 3: [0x0D67C6af0898CF6b947168193c815D3acc2D3929](https://arbiscan.io/address/0x0D67C6af0898CF6b947168193c815D3acc2D3929)
* **Fee Receiver:** [0x0fD4643B81F0B58358eF500A06aA4A3F3E0cDE62](https://arbiscan.io/address/0x0fD4643B81F0B58358eF500A06aA4A3F3E0cDE62) ([FactorDAO Protocol Rewards](/governance/factordao/factordao-multisig-addresses#protocol-rewards))


# Yield Type Strategies

## Overview

The strategies in this section focuses on more stable yield generation with minimal trading risks. This usually entails minimizing swaps between uncorrelated tokens while generating returns from various sources such as:

* Money market supply interest
* Staking/ Liquid Staking/ Restaking Yields
* Liquidity rewards


# Arbitrum (ChainID: 42161)


# 3.4x rETH Carry + 1x ARB Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0x1c82F7276A4FAdD3F80EF97a19898eD1aF958cea)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x5c23780be1bb046813e4c979906f7b5175133536cff354dbd66d4ae3274fb9ce)
{% endhint %}

## Description

<figure><img src="/files/kpUxFVP8phiVE5l6VPnU" alt=""><figcaption></figcaption></figure>

This strategy earns blended ARB and ETH yields by taking advantage of differences in Aave and Compound.

By depositing ARB into Aave, this strategy earns 1x the Aave ARB lending interest. This also allows the strategy to borrow WETH against the ARB collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for rETH earning the interest differentials between rETH liquid staking yields and Aave WETH borrow interest.

The rETH is then used to create a 7x leveraged rETH:ETH position (5% liquidation buffer) which earns an additional 6x interest differential between rETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

\+ ARB supply interest (Aave)

\+ rETH liquid staking yields (Lido)

\- ETH borrow interest

\+ COMP rewards on ETH borrow (Compound)

## Strategy

<figure><img src="/files/knw6opi5A6OiwbkQwmUc" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x5c23780be1bb046813e4c979906f7b5175133536cff354dbd66d4ae3274fb9ce">https://studio.factor.fi/?hash=0x5c23780be1bb046813e4c979906f7b5175133536cff354dbd66d4ae3274fb9ce</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $ARB - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $rETH
4. Flash loan 6x the borrowed $rETH amount
   1. 5% buffer from LTV
5. Lend all $rETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $rETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $rETH collateral - Compound
4. Swap $rETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $ARB collateral - Aave
7. Withdraw $ARB
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~0.28%](https://app.aave.com/reserve-overview/?underlyingAsset=0x912ce59144191c1204e64559fe8253a0e49e6548\&marketName=proto_arbitrum_v3) ARB Supply Interest
* [\~2.32%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [58%](https://app.aave.com/reserve-overview/?underlyingAsset=0x912ce59144191c1204e64559fe8253a0e49e6548\&marketName=proto_arbitrum_v3) ARB Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.07%](https://app.compound.finance/markets/weth-arb) WETH Borrow
* [\~0.79%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.70%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* rETH continuously increases in value vs WETH.
* WETH borrow cost is less than rETH liquid staking yields across Aave and Compound (including COMP rewards).
* ARB supply interest is greater than the interest differentials between rETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* rETH depegs from ETH.
* rETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1UzVXljEIJg7u_sX_Af5N0de7ernPkh0mclFczImh-SQ/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1UzVXljEIJg7u_sX_Af5N0de7ernPkh0mclFczImh-SQ/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1DobinFTMEsIQPjQlIt_yN5cslqfSgifnOpr7hbsz0q8/edit?usp=drive_link>" %}
<https://docs.google.com/spreadsheets/d/1DobinFTMEsIQPjQlIt_yN5cslqfSgifnOpr7hbsz0q8/edit?usp=drive_link>
{% endembed %}


# 3.9x wstETH Carry + 1x USDT Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0xeB8c204aF6923cd8e6B0b95c600Ad72A6FE23f7B)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x898d84da8661a3a6227f689403aa9f8383094baba4e8ba094c942a63afe5addd)
{% endhint %}

## Description

<figure><img src="/files/8o4EhIQ1wIjaebqvjmTV" alt=""><figcaption></figcaption></figure>

This strategy earns blended USDT and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDT into Aave, this strategy earns 1x the Aave USDT lending interest. This also allows the strategy to borrow WETH against the USDT collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for wstETH earning the interest differentials between wstETH liquid staking yields and Aave WETH borrow interest.

The wstETH is then used to create a 6.2x leveraged wstETH:ETH position (5% liquidation buffer) which earns an additional 5.2x interest differential between wstETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

<figure><img src="/files/2ERKtb5qRmfOP8Ba4nB0" alt=""><figcaption><p>Strategy Flow</p></figcaption></figure>

## Strategy Performance Conditions

<figure><img src="/files/KrFWQuRaET1JWI09MXJX" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than wstETH liquid staking yields across Aave and Compound (including COMP rewards).
* USDT supply interest is greater than the interest differentials between wstETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* wstETH depegs from ETH.
* wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Where Does The Yields Come From?

<figure><img src="/files/dpOAm74n5e8tW4BmsFtH" alt=""><figcaption><p>Strategy Exposure</p></figcaption></figure>

## Comparisons

<figure><img src="/files/Ou7P1uwkvl6WukjPUfx3" alt=""><figcaption></figcaption></figure>

## Factor Studio Strategy

<figure><img src="/files/v22tf3bEQfzYwxT18EGh" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x898d84da8661a3a6227f689403aa9f8383094baba4e8ba094c942a63afe5addd">https://studio.factor.fi/?hash=0x898d84da8661a3a6227f689403aa9f8383094baba4e8ba094c942a63afe5addd</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDT - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $wstETH
4. Flash loan 5.2x the borrowed $wstETH amount
   1. 5% buffer from LTV
5. Lend all $wstETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $wstETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $wstETH collateral - Compound
4. Swap $wstETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDT collateral - Aave
7. Withdraw $USDT
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~4.23%](https://app.aave.com/reserve-overview/?underlyingAsset=0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9\&marketName=proto_arbitrum_v3) USDT Supply Interest
* [\~2.32%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xfd086bc7cd5c481dcc9c85ebe478a1c0b69fcbb9\&marketName=proto_arbitrum_v3) USDT Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.07%](https://app.compound.finance/markets/weth-arb) WETH Borrow
* [\~0.79%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
  {% endtab %}

{% tab title="Lido" %}

* [\~2.70%](https://lido.fi/) wstETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1cRmBPUxQVw-ckS9Oigppq53euX6LBJG_Kg93BNBYA68/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1cRmBPUxQVw-ckS9Oigppq53euX6LBJG_Kg93BNBYA68/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1cRmBPUxQVw-ckS9Oigppq53euX6LBJG_Kg93BNBYA68/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1cRmBPUxQVw-ckS9Oigppq53euX6LBJG_Kg93BNBYA68/edit?usp=sharing>
{% endembed %}


# 4.4x rETH Carry + 1x USDC Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xf144C112Fd6Eb5a0C00ddAf0708B52420CB7a372)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools: [Strategy Builder Link](https://studio.factor.fi/?hash=0xf642c4a3e756bf4438a73fa8501b631bff2425a908a4e808db15f825da5123fb)
{% endhint %}

## Description

<figure><img src="/files/AhhmvrEKO50ac3M7j7JS" alt=""><figcaption></figcaption></figure>

This strategy earns blended USDC and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDC into Aave, this strategy earns 1x the Aave USDC lending interest. This also allows the strategy to borrow WETH against the USDC collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for rETH earning the interest differentials between rETH liquid staking yields and Aave WETH borrow interest.

The rETH is then used to create a 7x leveraged rETH:ETH position (5% liquidation buffer) which earns an additional 6x interest differential between rETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

<figure><img src="/files/W845DutwmV1LxR5F7ck3" alt=""><figcaption><p>Strategy Flow</p></figcaption></figure>

## Strategy Performance Conditions

<figure><img src="/files/OpTs3N59N32zjJlzvn5F" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* rETH continuously increases in value vs WETH.
* WETH borrow cost is less than rETH liquid staking yields across Aave and Compound (including COMP rewards).
* USDC supply interest is greater than the interest differentials between rETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* rETH depegs from ETH.
* rETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Where Does The Yields Come From?

<figure><img src="/files/IEfPWZxA1vtPGAIJy8K7" alt=""><figcaption><p>Strategy Exposure</p></figcaption></figure>

## Comparisons

<figure><img src="/files/g2MNj8SnsacoQFERr7In" alt=""><figcaption></figcaption></figure>

## Factor Studio Strategy

<figure><img src="/files/gbaWtKhcJ76Sm16aqwah" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xf642c4a3e756bf4438a73fa8501b631bff2425a908a4e808db15f825da5123fb">https://studio.factor.fi/?hash=0xf642c4a3e756bf4438a73fa8501b631bff2425a908a4e808db15f825da5123fb</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $rETH
4. Flash loan 6x the borrowed $rETH amount
   1. 5% buffer from LTV
5. Lend all $rETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $rETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $rETH collateral - Compound
4. Swap $rETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.11%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.33%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.1%](https://app.compound.finance/markets/weth-arb) WETH Borrow
* [\~0.64%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.64%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1BfH0bezfJQkeAvkuedWoZZbPKsj6rvkPNLOgIipJDlU/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1BfH0bezfJQkeAvkuedWoZZbPKsj6rvkPNLOgIipJDlU/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1pdPqohiBsrAQZJx_EKAlvZbzZ8PYlClEIxsk3D71ovE/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1pdPqohiBsrAQZJx_EKAlvZbzZ8PYlClEIxsk3D71ovE/edit?usp=sharing>
{% endembed %}


# wstETH Boosted USDC Lending - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x8C1f45D2A08c30cB258603378ad5Ac170935F41D)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools: [Strategy Builder Link](https://studio.factor.fi/?hash=0xb0e29413a72a47536193144b412d7a107580d77408cd21aee8a79dd26ad29584)
{% endhint %}

## Description

<figure><img src="/files/tgFpoEGO33EzHsTpBnnY" alt=""><figcaption></figcaption></figure>

This strategy earns blended USDC and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDC into Aave, this strategy earns 1x the Aave USDC lending interest. This also allows the strategy to borrow WETH against the USDC collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for wstETH earning the interest differentials between wstETH liquid staking yields and Aave WETH borrow interest.

The wstETH is then used to create a 7.1x leveraged wstETH:ETH position (2.5% liquidation buffer) which earns an additional 6.1x interest differential between wstETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

## Strategy Performance Conditions

<figure><img src="/files/ylanysLdpvFH9tH2b45Y" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than wstETH liquid staking yields across Aave and Compound (including COMP rewards).
* USDC supply interest is greater than the interest differentials between wstETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* wstETH depegs from ETH.
* wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Where Does The Yields Come From?

<figure><img src="/files/zGoOWVdxHloSfXBqHlH8" alt=""><figcaption></figcaption></figure>

## Comparisons

<figure><img src="/files/akWAAF6p8NDs2U514nvu" alt=""><figcaption></figcaption></figure>

## Factor Studio Strategy

<figure><img src="/files/OSH6htO47sTl7dwopylc" alt=""><figcaption><p><a href="https://studio.factor.fi/builder?hash=0x8c1f45d2a08c30cb258603378ad5ac170935f41d">https://studio.factor.fi/builder?hash=0x8c1f45d2a08c30cb258603378ad5ac170935f41d</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $wstETH
4. Flash loan 6.1x the borrowed $wstETH amount
   1. 2.5% buffer from LTV
5. Lend all $wstETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $wstETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $wstETH collateral - Compound
4. Swap $wstETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.11%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.33%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.1%](https://app.compound.finance/markets/weth-arb) WETH Borrow
* [\~0.64%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
  {% endtab %}

{% tab title="Lido" %}

* [\~3.2%](https://stake.lido.fi/) wstETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1p_hk69aImsLMgbzjQlY37vjMza9jAwqR4yjd_34WzaY/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1p_hk69aImsLMgbzjQlY37vjMza9jAwqR4yjd_34WzaY/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1gUzTfwhzOW6iTslSMoJvnkI0KxkiB99hCHxrfBo6dZ8/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1gUzTfwhzOW6iTslSMoJvnkI0KxkiB99hCHxrfBo6dZ8/edit?usp=sharing>
{% endembed %}


# 7x rETH:ETH Levered Yields - Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x05960CAB961580EC0D6262759D553afA0232e7b0)&#x20;
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools: [Strategy Builder Link](https://studio.factor.fi/?hash=0xb554842f53a095d023e685fb7d24b1b682a65b7c8b91fccc1b14b851657ebde0)
{% endhint %}

## Description

<figure><img src="/files/4s5h4zrRNSl88jZcP1WK" alt=""><figcaption></figcaption></figure>

This vault creates 7x leveraged rETH:ETH position that earns 1x rETH liquid staking yields plus an additional 6x interest differential between rETH yields and WETH borrow costs.

Deposited rETH is supplied to Compound enabling the strategy to borrow WETH which is then swapped for more rETH. This process is repeated to get up to 7x leverage which provides a 5% liquidation buffer.

\+ rETH liquid staking yields

\+ COMP borrow rewards

\- ETH borrow interest

## Strategy

<figure><img src="/files/0ho3TOVFJnYZfigaPdNO" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xb554842f53a095d023e685fb7d24b1b682a65b7c8b91fccc1b14b851657ebde0">https://studio.factor.fi/?hash=0xb554842f53a095d023e685fb7d24b1b682a65b7c8b91fccc1b14b851657ebde0</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Flash loan 6x the deposited $rETH amount
2. Lend all $rETH - Compound
3. Borrow $ETH to cover flash loan
4. Swap borrowed $ETH → $rETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $rETH collateral - Compound
4. Swap $rETH → $ETH
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Compound" %}

* [0.64%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
* [\~2.1%](https://app.compound.finance/markets/weth-arb) WETH Borrow Interest
* [90%](https://app.compound.finance/markets/weth-arb) rETH Max LTV
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.64%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* rETH continuously increases in value vs WETH.
* WETH borrow cost is less than rETH liquid staking yields plus COMP rewards
  {% endtab %}

{% tab title="Loss" %}

* rETH depegs from ETH.
* rETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1U9BOVhKlBRGiFNLfUZ-iSgZ--4X6zcQtGrwyL0VBmfQ/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1U9BOVhKlBRGiFNLfUZ-iSgZ--4X6zcQtGrwyL0VBmfQ/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/13qmV6QWLkjo2T-f2s4P_HHsQuw4LU-XeY-0Qz7lHJ5U/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/13qmV6QWLkjo2T-f2s4P_HHsQuw4LU-XeY-0Qz7lHJ5U/edit?usp=sharing>
{% endembed %}


# 7.1x wstETH:ETH Auto-Compounder - Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link ](https://pro.factor.fi/strategies/0x1425f226BD821C44b8C187ec2A8B5CE4f1A29323)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x68f3a7dd13de7c8c7ff30faaf359f72da1155852a16f8c323a06466a664694d6)
{% endhint %}

## Description

<figure><img src="/files/Yl1vhsiGBdii2hZNovTx" alt=""><figcaption></figcaption></figure>

This vault creates 7.1x leveraged wstETH:ETH position that earns 1x wstETH liquid staking yields plus an additional 6.1x interest differential between wdtETH yields and WETH borrow costs.

Deposited wstETH is supplied to Compound enabling the strategy to borrow WETH which is then swapped for more wstETH. This process is repeated to get up to 7.1x leverage which provides a 2.5% liquidation buffer.

\+ wstETH liquid staking yields

\+ COMP borrow rewards

\- ETH borrow interest

## Strategy

<figure><img src="/files/shEpcmp7c86JbmXg8MTr" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x68f3a7dd13de7c8c7ff30faaf359f72da1155852a16f8c323a06466a664694d6">https://studio.factor.fi/?hash=0x68f3a7dd13de7c8c7ff30faaf359f72da1155852a16f8c323a06466a664694d6</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Claim all COMP rewards
2. Swap COMP → wstETH
3. Flash loan 6.1x the $wstETH amount (deposits plus rewards)
4. Lend all $wstETH - Compound
5. Borrow $ETH to cover flash loan
6. Swap borrowed $ETH → $wstETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $wstETH collateral - Compound
4. Swap $wstETH → $ETH
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Compound" %}

* [0.41%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
* [\~2.3%](https://app.compound.finance/markets/weth-arb) WETH Borrow Interest
* [88%](https://app.compound.finance/markets/weth-arb) wstETH Max LTV
  {% endtab %}

{% tab title="Lido" %}

* [\~2.6%](https://stake.lido.fi/) wstETH Liquid Staking Yield
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

<figure><img src="/files/xoPBPVFvSTYe8Nub2DcQ" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than wstETH liquid staking yields plus COMP rewards
  {% endtab %}

{% tab title="Loss" %}

* wstETH depegs from ETH.
* wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1EvGaQUkjT2ii665pMIWHKKMwL-6aepkKcezswitJEjU/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1EvGaQUkjT2ii665pMIWHKKMwL-6aepkKcezswitJEjU/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/19zQ5sSqL81xaurh-m2iKc2DHLU5_gADJNmBKkijrb4k/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/19zQ5sSqL81xaurh-m2iKc2DHLU5_gADJNmBKkijrb4k/edit?usp=sharing>
{% endembed %}


# Amplified wstETH Yields On USDC Lend - Aave

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x4a05c725fda5b3b700839f4552be3513ced37f39)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x3daac7c10909d7184cc0cb3e1cdd8f1cf8c601eb9437d69aa7d1b1e84a35f979)
{% endhint %}

## Description

<figure><img src="/files/0SG2DHn76y4fUUQEHrM1" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x3daac7c10909d7184cc0cb3e1cdd8f1cf8c601eb9437d69aa7d1b1e84a35f979">https://studio.factor.fi/?hash=0x3daac7c10909d7184cc0cb3e1cdd8f1cf8c601eb9437d69aa7d1b1e84a35f979</a></p></figcaption></figure>

The vault deposits USDC into Aave to earn lending interest.

By collateralizing the USDC deposit, the vault is able to borrow ETH with a 20% liquidation buffer.

Borrowed ETH is swapped for wstETH to create a leveraged wstETH/ETH position on Aave that earns amplified interest differentials between wstETH liquid staking yields and ETH borrow costs.

\+ USDC supply interest

\+ wstETH liquid staking yields

\- ETH borrow interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Flash loan 2.5x the borrowed $ETH amount
   1. 5% buffer from LTV
4. Swap all $ETH → $wstETH
5. Lend all $wstETH - Aave
6. Borrow $ETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $wstETH collateral - Aave
4. Swap $wstETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~2.94%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.34%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x5979d7b546e38e414f7e9822514be443a4800529\&marketName=proto_arbitrum_v3) wstETH Max LTV
  {% endtab %}

{% tab title="Lido" %}

* [\~2.9%](https://stake.lido.fi/) wstETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than wstETH liquid staking yields across Aave
* USDC supply interest is greater than the interest differentials between wstETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* wstETH depegs from ETH.
* wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1AqQt0Uk2gzOYYnJi4ijrFbvjwjsGMm0ywrlMGOdHilY/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1AqQt0Uk2gzOYYnJi4ijrFbvjwjsGMm0ywrlMGOdHilY/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1FzCCMzjcbHUpzxBq635VNuOmdd1tJBY8GLbfa4R4lMk/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1FzCCMzjcbHUpzxBq635VNuOmdd1tJBY8GLbfa4R4lMk/edit?usp=sharing>
{% endembed %}


# Additional rETH Yields On USDC Lend

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x99E11bF7f92b1D486F8D88Bc5F467C695836f8A2)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x894ba2383b0e7923446f5df18e38dd450266ebe3e5961a27f79eb86dbaace6e3)
{% endhint %}

## Description

<figure><img src="/files/9w1WYvGBniqpO1wG5IY8" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x894ba2383b0e7923446f5df18e38dd450266ebe3e5961a27f79eb86dbaace6e3">https://studio.factor.fi/?hash=0x894ba2383b0e7923446f5df18e38dd450266ebe3e5961a27f79eb86dbaace6e3</a></p></figcaption></figure>

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH liquid staking yields.

By swapping borrowed ETH for rETH, this strategy earns the the difference between rETH liquid staking yields and ETH borrow interest. Liquid staking yields accrues natively to the liquid staked token and is reflected in rETH price always appreciating against ETH.

\+ USDC Lending Interest

\+ rETH Liquid Staking Yields

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend all $USDC - Aave
2. Borrow $WETH
   1. 62.5% of collateral value for 20% buffer
3. Swap $WETH → $rETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Swap $rETH → $WETH
2. Repay $WETH debt - Aave
3. Withdraw $USDC collateral
4. Close remaining debt
5. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~6%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.4%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.7%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* rETH continuously increases in value vs WETH.
* WETH borrow cost is less than rETH liquid staking yields.
* USDC supply interest is greater than the interest differentials between rETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* rETH depegs from ETH.
* rETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1EYxoyRmWFF7O1tLAGpf_dBMqtyTpexfxaEgDQ2TiyDk/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1EYxoyRmWFF7O1tLAGpf_dBMqtyTpexfxaEgDQ2TiyDk/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1_SAtMjfsbUuGSxeVfAanTA1XTtWTuH5vvYI9Fu6seY4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1_SAtMjfsbUuGSxeVfAanTA1XTtWTuH5vvYI9Fu6seY4/edit?usp=sharing>
{% endembed %}


# Additional Liquid Staked ETH Yields On USDC Lend

{% embed url="<https://www.youtube.com/watch?v=3N_VuTHjQl4>" %}

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xfe67342abc06e69b4d319ef6b298b135cff596cc)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x203b3da5bb64d3119528042d367a214d8778eca0821dc91d9d285bbaf47c9a87)
{% endhint %}

## Description

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH liquid staking yields.

By swapping borrowed ETH for rETH & wstETH, this strategy earns the the difference between rETH/wstETH liquid staking yields and ETH borrow interest. Liquid staking yields accrues natively to the liquid staked token and is reflected in rETH/wstETH price always appreciating against ETH.

\+ USDC Lending Interest

\+ rETH Liquid Staking Yields

\+ wstETH Liquid Staking Yields

\- ETH Borrow Interest

<figure><img src="/files/kCxcjp2FaxAcO2gVd7z1" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x203b3da5bb64d3119528042d367a214d8778eca0821dc91d9d285bbaf47c9a87">https://studio.factor.fi/?hash=0x203b3da5bb64d3119528042d367a214d8778eca0821dc91d9d285bbaf47c9a87</a></p></figcaption></figure>

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend all $USDC - Aave
2. Borrow $WETH
   1. 62.5% of collateral value for 20% buffer
3. Swap 50% $WETH → $rETH
4. Swap 50% $WETH → $wstETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Swap $rETH → $WETH
2. Swap $wstETH → $WETH
3. Repay $WETH debt - Aave
4. Withdraw $USDC collateral
5. Close remaining debt
6. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~6%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.4%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.7% ](https://rocketpool.net/)rETH Liquid Staking Yields
  {% endtab %}

{% tab title="Lido" %}

* [\~2.8%](https://lido.fi/) Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* rETH/wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than rETH/wstETH liquid staking yields.
* USDC supply interest is greater than the interest differentials between rETH/wstETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* rETH/wstETH depegs from ETH.
* rETH/wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1_vACL35FxqB018yxyZ6FrHixxcVuZ2sWrOLPr3UX0C4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1_vACL35FxqB018yxyZ6FrHixxcVuZ2sWrOLPr3UX0C4/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1Mj0kiPxqtbJeJAC5CSExpDxvEzs4dlUH7Wktwjx4dlk/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1Mj0kiPxqtbJeJAC5CSExpDxvEzs4dlUH7Wktwjx4dlk/edit?usp=sharing>
{% endembed %}


# Additional Liquid Restaked ETH Yields On USDC Lend

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x549D2315d99F0c50872DA2E33a2b027514BD7812)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x1d711d4ec0159a6f9a678c85517df63805a01970707157e880e2c11b8e5aa282)
{% endhint %}

## Description

<figure><img src="/files/nP0ymzlispNSiir9ubLH" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x1d711d4ec0159a6f9a678c85517df63805a01970707157e880e2c11b8e5aa282">https://studio.factor.fi/?hash=0x1d711d4ec0159a6f9a678c85517df63805a01970707157e880e2c11b8e5aa282</a></p></figcaption></figure>

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH restaking yields.

By swapping borrowed ETH for weETH, ezETH, and rsETH, this strategy earns the the difference between liquid restaking yields and ETH borrow interest. Liquid restaking yields accrues natively to the liquid staked token and is reflected in liquid restaked token price always appreciating against ETH.

\+ USDC Lending Interest

\+ weETH Liquid Staking Yields

\+ ezETH Liquid Staking Yields

\+ rsETH Liquid Staking Yields

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend all $USDC - Aave
2. Borrow $WETH
   1. 62.5% of collateral value for 20% buffer
3. Swap 33% $WETH → $weETH
4. Swap 33% $WETH → $ezETH
5. Swap 33% $WETH → $rsETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Swap all $weETH → $WETH
2. Swap all $ezETH → $WETH
3. Swap all $rsETH → $WETH
4. Repay $WETH debt - Aave
5. Withdraw $USDC collateral
6. Close remaining debt
7. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~6%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~2.4%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
  {% endtab %}

{% tab title="Ether.fi" %}

* [\~3.7%](https://app.ether.fi/weeth) weETH Liquid Staking Yields
  {% endtab %}

{% tab title="Renzo" %}

* [\~4.1%](https://app.renzoprotocol.com/restaking) ezETH Liquid Restaking Yields
  {% endtab %}

{% tab title="Kelp" %}

* [\~4.1%](https://kerneldao.com/kelp/restake/) rsETH Liquid Restaking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* weETH/ezETH/rsETH continuously increases in value vs WETH.
* WETH borrow cost is less than weETH/ezETH/rsETH liquid restaking yields.
* USDC supply interest is greater than the interest differentials between weETH/ezETH/rsETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* weETH/ezETH/rsETH depegs from ETH.
* weETH/ezETH/rsETH liquid restaking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1DPuJzHnpyTe2EfBr10ZehHpcaLQhJq8wH3Ea9kBcr10/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1DPuJzHnpyTe2EfBr10ZehHpcaLQhJq8wH3Ea9kBcr10/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1eKXSSeIpV7GUMS9I4-3LVq8M78HvDSXutfAwxlX31Ho/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1eKXSSeIpV7GUMS9I4-3LVq8M78HvDSXutfAwxlX31Ho/edit?usp=sharing>
{% endembed %}


# Diversified USDC Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0xCAbb63CFEe43eDE977a01955D1c3742000baddae)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x3419064c42ad1868dcd1f07e760a1b2435bc98646e760f1a2b8bf32e3aa34b7b)
{% endhint %}

## Description

<figure><img src="/files/sxXgMYwlUxDwUvqy34cv" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x3419064c42ad1868dcd1f07e760a1b2435bc98646e760f1a2b8bf32e3aa34b7b">https://studio.factor.fi/?hash=0x3419064c42ad1868dcd1f07e760a1b2435bc98646e760f1a2b8bf32e3aa34b7b</a></p></figcaption></figure>

This strategy earns diversified USDC lending interest on both Aave and Compound.

By lending USDC evenly across Aave and Compound, this strategy captures lending interest from across  two major USDC lending markets. By lending USDC on Compound, this strategy also accrues COMP liquidity rewards.

Lending market risks are split between Aave and Compound, minimizing any adverse market conditions to just half the strategy value.&#x20;

\+ USDC Lending Interest (Aave)

\+ USDC Lending Interest (COmpound)

\+ COMP Lending Rewards

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend 50% $USDC on Aave
2. Lend 50% $USDC on Compound USDC market (cUSDCv3)
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Withdraw $USDC from Aave
2. Withdraw $USDC from Compound
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.11%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
  {% endtab %}

{% tab title="Compound" %}

* [\~3.18%](https://app.compound.finance/markets/usdc-arb) USDC Supply Interest
* [\~1.05%](https://app.compound.finance/markets/usdc-arb) COMP rewards
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* USDC lending interest from both Aave and Compound
  {% endtab %}

{% tab title="Loss" %}

* USDC depeg resulting in loss of capital value
* Loss from lending market risk is halved through splitting lending across Aave and Compound
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/14BiAX3FCa8UnnzlOmLAw6iBHr1yEk46Qq0Bfl_BJQAo/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/14BiAX3FCa8UnnzlOmLAw6iBHr1yEk46Qq0Bfl_BJQAo/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1xz99b4B1I18Nt0ZPPfkbiUT9ESC6uFF8SCGrqir4lLg/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1xz99b4B1I18Nt0ZPPfkbiUT9ESC6uFF8SCGrqir4lLg/edit?usp=sharing>
{% endembed %}


# Base (ChainID: 8453)


# wstETH:ETH Loop Optimizer - Aave, Compound, Morpho

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0xea11bc07cca5a11476a30cfaa1db5c6a5e578799)&#x20;
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x6ec39d4a8969d92c0e691baccd4ac7d25c61d457f84b475c706f8a1a7b11132c)
{% endhint %}

## Description

<figure><img src="/files/GqOHdI4onL0HfgyrBUNY" alt=""><figcaption></figcaption></figure>

This vault optimizes looped wstETH returns by constantly scanning for the lowest ETH borrow rates  across Aave, Compound, & Morpho wstETH:ETH markets.

By repeatedly borrowing WETH against wstETH when the borrow rates are low, the vault is able to multiply the interest differentials (i.e. yield carry). A wstETH:ETH Long position is created with a 2.5% liquidation buffer on the identified market.

Positions are migrated between markets with minimal price impact as only the portion of liquidity relating to the differing max loan-to-value ratios are swapped.

Any earned rewardsa are automatically compounded for more wstETH.

\+ wstETH liquid staking yields

\+ COMP borrow rewards

\- ETH borrow interest

## Strategy

<figure><img src="/files/hjRy46uIwTFizGbgGFu4" alt=""><figcaption><p><a href="https://studio.factor.fi/builder?hash=0xea11bc07cca5a11476a30cfaa1db5c6a5e578799">https://studio.factor.fi/builder?hash=0xea11bc07cca5a11476a30cfaa1db5c6a5e578799</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Flash loan $WETH up to 16.1x (dependent on market)
2. Swap WETH → wstETH
3. Lend all $wstETH on market with lowest $ETH borrow
4. Borrow $ETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt&#x20;
3. Withdraw $wstETH collateral
4. Swap $wstETH → $ETH
   {% endtab %}

{% tab title="Refinance" %}

1. Flash loan $ETH
2. Repay all $ETH debt on current market
3. Withdraw all $wstETH on current market
4. Lend all $wstETH on target market
5. Borrow $ETH to repay flash loan
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~2.05%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xc1cba3fcea344f92d9239c08c0568f6f2f0ee452\&marketName=proto_base_v3) wstETH Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~0.28%](https://app.compound.finance/markets/weth-basemainnet) COMP Borrow Rewards
* [\~1,87%](https://app.compound.finance/markets/weth-basemainnet) WETH Borrow Interest
* [90%](https://app.compound.finance/markets/weth-arb) cbETH Max LTV
  {% endtab %}

{% tab title="Morpho" %}

* [\~1.56%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [96.5%](https://app.morpho.org/base/borrow?collateralAssetIdsFilter=62ae9a63-0395-4187-bf1b-8964970c262d\&loanAssetIdsFilter=25a68056-3541-4f4a-8b1c-f3dcf383638e) wstETH Max LTV
  {% endtab %}

{% tab title="Lido" %}

* [\~2.5%](https://stake.lido.fi/) cbETH Liquid Staking Yield
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

<figure><img src="/files/Wnzhk8hWQSMJD9cNcMQK" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than wstETH liquid staking yields
  {% endtab %}

{% tab title="Loss" %}

* wstETH depegs from ETH.
* wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1rjcct3uyf9jqAZ8u8tDqNaio_7EZzbkoMFUO2rja1nA/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1rjcct3uyf9jqAZ8u8tDqNaio_7EZzbkoMFUO2rja1nA/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/111hgqzIM5Eb-l8fZAIpEiTpLOUOTF8GkKMNywkomVjA/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/111hgqzIM5Eb-l8fZAIpEiTpLOUOTF8GkKMNywkomVjA/edit?usp=sharing>
{% endembed %}


# 4.4x cbETH Carry + 1x USDC Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0xC92757DAB050d7a4294de01c24994E81D33b4C8c)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x33a2fed41dc907e7ce318146fa87b2a52d1c1b561caeae534df6734d0cbf14ec)
{% endhint %}

## Description

<figure><img src="/files/XObKexXBBnfb8bKtlrrm" alt=""><figcaption></figcaption></figure>

This strategy earns blended USDC and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDC into Aave, this strategy earns 1x the Aave USDC lending interest. This also allows the strategy to borrow WETH against the USDC collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for cbETH earning the interest differentials between cbETH liquid staking yields and Aave WETH borrow interest.

The cbETH is then used to create a 7x leveraged cbETH:ETH position (5% liquidation buffer) which earns an additional 6x interest differential between cbETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

<figure><img src="/files/KnGlfWHfhvHUpg8qYmMh" alt=""><figcaption><p>Strategy Flow</p></figcaption></figure>

## Strategy Performance Conditions

<figure><img src="/files/IJdiDsAw8hx02twpziqA" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave and Compound (including COMP rewards).
* USDC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Where Does The Yields Come From?

<figure><img src="/files/009CiCisRh93zrhXK5vz" alt=""><figcaption><p>Strategy Exposure</p></figcaption></figure>

## Comparison

<figure><img src="/files/5E6YkwviacyHS8PRJsD5" alt=""><figcaption></figcaption></figure>

## Factor Studio Strategy

<figure><img src="/files/gRyv5xqiamUhlTgo9Cuk" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x33a2fed41dc907e7ce318146fa87b2a52d1c1b561caeae534df6734d0cbf14ec">https://studio.factor.fi/?hash=0x33a2fed41dc907e7ce318146fa87b2a52d1c1b561caeae534df6734d0cbf14ec</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $cbETH
4. Flash loan 6x the borrowed $cbETH amount
   1. 5% buffer from LTV
5. Lend all $cbETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $cbETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $cbETH collateral - Compound
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~4.90% ](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3)USDC Supply Interest
* [\~2.40%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75% ](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3)USDC Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.22%](https://app.compound.finance/markets/weth-basemainnet) WETH Borrow
* [\~0.98%](https://app.compound.finance/markets/weth-basemainnet) COMP Borrow Rewards
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.08%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1M2JKksrAzUKW5T-DfrevhDrlQzPrMnGl09TxPUqIy8Y/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1M2JKksrAzUKW5T-DfrevhDrlQzPrMnGl09TxPUqIy8Y/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1TO3rTsaLXuBRMq_xb0EBMDCUoLZMVm4mVMSzTD6g1ek/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1TO3rTsaLXuBRMq_xb0EBMDCUoLZMVm4mVMSzTD6g1ek/edit?usp=sharing>
{% endembed %}


# 4.3x cbETH Carry + 1x cbBTC Lending Yields - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0x735831bAcE826acec15bFB1D189928121b9Ab160)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x79cacb2c59d5d0c560ce56dd6b650aa8978085a0b59cb0633c7ccd24f7bb6a7e)
{% endhint %}

## Description

<figure><img src="/files/JjgL0xp2e5RRBZXSYQvA" alt=""><figcaption></figcaption></figure>

This strategy earns blended cbBTC, ETH, and COMP yields by taking advantage of differences in Aave and Compound.

By depositing cbBTC into Aave, this strategy earns 1x the Aave cbBTC lending interest. This also allows the strategy to borrow WETH against the cbBTC collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for cbETH earning the interest differentials between cbETH liquid staking yields and Aave WETH borrow interest.

The cbETH is then used to create a 7x leveraged cbETH:ETH position (5% liquidation buffer) which earns an additional 6x interest differential between cbETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

\+ cbBTC supply interest (Aave)

\+ cbETH liquid staking yields

\- ETH borrow interest

\+ COMP rewards on ETH borrow (Compound)

## Strategy

<figure><img src="/files/QEeQB8ivfzoOvkmT3mVF" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $cbBTC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $cbETH
4. Flash loan 6x the borrowed $cbETH amount
   1. 5% buffer from LTV
5. Lend all $cbETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $cbETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $cbETH collateral - Compound
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $cbBTC collateral - Aave
7. Withdraw $cbBTC
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~0.16%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbBTC Supply Interest
* [\~2.40%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [73%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbBTC Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.22%](https://app.compound.finance/markets/weth-basemainnet) WETH Borrow
* [\~0.98%](https://app.compound.finance/markets/weth-basemainnet) COMP Borrow Rewards
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.08%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave and Compound (including COMP rewards).
* cbBTC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1aCQklmz1JE7M1wR89h-y8VrvYjNzsjmuijzEQPSMvBw/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1aCQklmz1JE7M1wR89h-y8VrvYjNzsjmuijzEQPSMvBw/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1zV3ZRVcl_IzALd2dNDpNrCG9PglJigg1sRBBDVKW9To/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1zV3ZRVcl_IzALd2dNDpNrCG9PglJigg1sRBBDVKW9To/edit?usp=sharing>
{% endembed %}


# 3.5x Leveraged cbETH:ETH Yields - Aave

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xe63072299f8c84887520AB6b590c447dad5c7B4c)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873)
{% endhint %}

## Description

<figure><img src="/files/VxFaQY4X6fxUO2vSDlp4" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873">https://studio.factor.fi/?hash=0xdc9fdad0b832264cf46438b2ea97098cae0de1d871de5c72264b79f58de64873</a></p></figcaption></figure>

This vault creates 3.5x leveraged cbETH:ETH position that earns 1x cbETH liquid staking yields plus an additional 2.5x interest differential between cbETH yields and WETH borrow costs.

Deposited cbETH is supplied to Aave enabling the strategy to borrow WETH which is then swapped for more cbETH. This process is repeated to get up to 3.5x leverage which provides a 5% liquidation buffer.

\+ cbETH liquid staking yields

\- ETH borrow interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Flash loan 2.5x the deposited $cbETH amount
2. Lend all $cbETH - Aave
3. Borrow $ETH to cover flash loan
4. Swap borrowed $ETH → $cbETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $cbETH collateral - Aave
4. Swap $cbETH → $ETH
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~0.11%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbETH Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x5979d7b546e38e414f7e9822514be443a4800529\&marketName=proto_arbitrum_v3) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.09%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1SRg9rk_WcOrDr7x18f3mNVZf2_D7Uw1pMiHASvSnZ-Y/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1SRg9rk_WcOrDr7x18f3mNVZf2_D7Uw1pMiHASvSnZ-Y/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/11pOG2i3EUpRau5XJcDa9lL1FxGJSjYqhD6QUSON8Ja4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/11pOG2i3EUpRau5XJcDa9lL1FxGJSjYqhD6QUSON8Ja4/edit?usp=sharing>
{% endembed %}


# 8.2x cbETH:ETH Auto-Compounder - Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray:  [Strategy Deposit Link](https://pro.factor.fi/strategies/0xfC3464A2Ebb70Ae5dec4849F3F2a995Ca1DEEf9C)&#x20;
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools:  [Strategy Builder Link](https://studio.factor.fi/?hash=0x6ec39d4a8969d92c0e691baccd4ac7d25c61d457f84b475c706f8a1a7b11132c)
{% endhint %}

## Description

<figure><img src="/files/XwHIrwWJ5BRRbcmDr1wb" alt=""><figcaption></figcaption></figure>

This vault creates 8.2x leveraged cbETH:ETH position that earns 1x cbETH liquid staking yields plus an additional 7.2x interest differential between cbETH yields + COMP rewards and WETH borrow costs.

Deposited cbETH is supplied to Compound enabling the strategy to borrow WETH which is then swapped for more cbETH. This process is repeated to get up to 8.2x leverage which provides a 2.5% liquidation buffer.

\+ cbETH liquid staking yields

\+ COMP borrow rewards

\- ETH borrow interest

## Strategy

<figure><img src="/files/fktRKWBoBkabvOcrtqFg" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x6ec39d4a8969d92c0e691baccd4ac7d25c61d457f84b475c706f8a1a7b11132c">https://studio.factor.fi/?hash=0x6ec39d4a8969d92c0e691baccd4ac7d25c61d457f84b475c706f8a1a7b11132c</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Claim all COMP rewards
2. Swap COMP → cbETH
3. Flash loan 7.2x the $cbETH amount (deposits plus rewards)
4. Lend all $cbETH - Compound
5. Borrow $ETH to cover flash loan
6. Swap borrowed $ETH → $cbETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $cbETH collateral - Compound
4. Swap $cbETH → $ETH
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Compound" %}

* [0.28%](https://app.compound.finance/markets/weth-basemainnet) COMP Borrow Rewards
* [\~2.37%](https://app.compound.finance/markets/weth-basemainnet) WETH Borrow Interest
* [88%](https://app.compound.finance/markets/weth-arb) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.26%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yield
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

<figure><img src="/files/j7xiXXw0C3SdTDXYuRvj" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields plus COMP rewards
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1kd49sUMJDpyLJbfcsxTlvWb70yQ1WgBoxi5VZfyKvf4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1kd49sUMJDpyLJbfcsxTlvWb70yQ1WgBoxi5VZfyKvf4/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/17M1vigyilyLs-DlAqLCG2-Q9DtOTP2Bd7BlnaV38k04/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/17M1vigyilyLs-DlAqLCG2-Q9DtOTP2Bd7BlnaV38k04/edit?usp=sharing>
{% endembed %}


# Additional cbETH Yields On USDC Lend

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xF012611ACF97E7de0381C8B2B8024A6b90794955)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x54b5b73feefbe34e27a6ead28a07c460322bde29748473ce3b684519a4d3c395)
{% endhint %}

## Description

<figure><img src="/files/NaWWAKmo6LIBQs1phxm1" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x54b5b73feefbe34e27a6ead28a07c460322bde29748473ce3b684519a4d3c395">https://studio.factor.fi/?hash=0x54b5b73feefbe34e27a6ead28a07c460322bde29748473ce3b684519a4d3c395</a></p></figcaption></figure>

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional cbETH liquid staking yields.

By swapping borrowed ETH for cbETH, this strategy earns the the difference between cbETH liquid staking yields and ETH borrow interest. Liquid staking yields accrues natively to the liquid staked token and is reflected in cbETH price always appreciating against ETH.

\+ USDC Lending Interest

\+ cbETH Liquid Staking Yields

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend all $USDC - Aave
2. Borrow $WETH
   1. 62.5% of collateral value for 20% buffer
3. Swap $WETH → $cbETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Swap $cbETH → $WETH
2. Repay $WETH debt - Aave
3. Withdraw $USDC collateral
4. Close remaining debt
5. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.7% ](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3)USDC Supply Interest
* [\~2.5%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.1%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields.
* USDC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1TLfW0SncYQVlGB5zGZYFP0QLhhWrgI9GsOQl_UC_v6c/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1TLfW0SncYQVlGB5zGZYFP0QLhhWrgI9GsOQl_UC_v6c/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1HQixpwzumoEXx8lB-2CI0YBMEUsV-VP_EG_A7O29vmM/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1HQixpwzumoEXx8lB-2CI0YBMEUsV-VP_EG_A7O29vmM/edit?usp=sharing>
{% endembed %}


# Additional Liquid Staked ETH Yields On USDC Lend

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x5F25Ba28239E59a8a835521aba067f06462Ee345)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x2b26a8bf684f160582c14a78293fe2ca16003d6d982864171d735cba3f749978)
{% endhint %}

## Description

<figure><img src="/files/3ozL9bknvlWdDwH0WBcd" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x2b26a8bf684f160582c14a78293fe2ca16003d6d982864171d735cba3f749978">https://studio.factor.fi/?hash=0x2b26a8bf684f160582c14a78293fe2ca16003d6d982864171d735cba3f749978</a></p></figcaption></figure>

This strategy earns USDC lending interest on Aave and borrows ETH to generate additional ETH liquid staking yields.

By swapping borrowed ETH for cbETH & wstETH, this strategy earns the the difference between cbETH/wstETH liquid staking yields and ETH borrow interest. Liquid staking yields accrues natively to the liquid staked token and is reflected in cbETH/wstETH price always appreciating against ETH.

\+ USDC Lending Interest

\+ cbETH Liquid Staking Yields

\+ wstETH Liquid Staking Yields

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Lend all $USDC - Aave
2. Borrow $WETH
   1. 62.5% of collateral value for 20% buffer
3. Swap 50% $WETH → $cbETH
4. Swap 50% $WETH → $wstETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Swap $cbETH → $WETH
2. Swap $wstETH → $WETH
3. Repay $WETH debt - Aave
4. Withdraw $USDC collateral
5. Close remaining debt
6. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.69%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~2.8%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="Lido" %}

* [\~2.8%](https://lido.fi/) Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH/wstETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH/wstETH liquid staking yields.
* USDC supply interest is greater than the interest differentials between cbETH/wstETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH/wstETH depegs from ETH.
* cbETH/wstETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1ocolNRjOGwBULsJEOs5vKbk61K_krQ7yajVNYI9yLB4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1ocolNRjOGwBULsJEOs5vKbk61K_krQ7yajVNYI9yLB4/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1lBNZxx69FLLQjuli6oLYUw6KpMdNTup_jii67r0zGyI/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1lBNZxx69FLLQjuli6oLYUw6KpMdNTup_jii67r0zGyI/edit?usp=sharing>
{% endembed %}


# Amplified cbETH Yields On USDC Lend - Aave

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x4A3de8A60A853f0436E0fA38c0FDcF0b8035E525)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0xa383182aa4e1feece921d7e65ff0ce55476964a4bc27398772abb084291e696a)
{% endhint %}

## Description

<figure><img src="/files/11TjJxuKy1DtOdEOr3LI" alt=""><figcaption></figcaption></figure>

The vault deposits USDC into Aave to earn lending interest.

By collateralizing the USDC deposit, the vault is able to borrow ETH with a 20% liquidation buffer.

Borrowed ETH is swapped for cbETH to create a 3.5x leveraged cbETH:ETH position on Aave that earns amplified interest differentials between cbETH liquid staking yields and ETH borrow costs.

\+ USDC supply interest

\+ cbETH liquid staking yields

\- ETH borrow interest

## Strategy

<figure><img src="/files/VljjXFx1hcJBsGPxQfHm" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xa383182aa4e1feece921d7e65ff0ce55476964a4bc27398772abb084291e696a">https://studio.factor.fi/?hash=0xa383182aa4e1feece921d7e65ff0ce55476964a4bc27398772abb084291e696a</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Flash loan 2.5x the borrowed $ETH amount
   1. 5% buffer from LTV
4. Swap all $ETH → $cbETH
5. Lend all $cbETH - Aave
6. Borrow $ETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $cbETH collateral - Aave
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.77%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x5979d7b546e38e414f7e9822514be443a4800529\&marketName=proto_arbitrum_v3) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.09%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave
* USDC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1GZy-aRVCG_MRxJjphwMAaxYQy4AkJdzvMRp9-CEKNMc/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1GZy-aRVCG_MRxJjphwMAaxYQy4AkJdzvMRp9-CEKNMc/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1BTVCYVrNmHfY61-6pyZoF-FXr57eXcIekdEuUcG98mc/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1BTVCYVrNmHfY61-6pyZoF-FXr57eXcIekdEuUcG98mc/edit?usp=sharing>
{% endembed %}


# Amplified cbETH Yields On cbBTC Lend - Aave

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x96BdCd124782f2A7B310F28fB5a3cBe3f66897d5)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a)
{% endhint %}

## Description

<figure><img src="/files/AsC1pvyTzBR7l7Y20cpM" alt=""><figcaption></figcaption></figure>

The vault collateralizes cbBTC on Aave to earn amplified interest differentials on borrowed ETH.

By collateralizing the cbBTC deposit, the vault is able to borrow ETH with a 20% liquidation buffer while earning a minor cbBTC supply interest.

Borrowed ETH is swapped for cbETH to create a 3.5x leveraged cbETH:ETH position on Aave that earns amplified interest differentials between cbETH liquid staking yields and ETH borrow costs.

\+ cbBTC supply interest

\+ cbETH liquid staking yields

\- ETH borrow interest

## Strategy

<figure><img src="/files/UAGAVvTgLvrecy2eKjLm" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a">https://studio.factor.fi/?hash=0x0bb0ff9b3dcddc11b93071c6f75cac9cff05b924ac6fb724789ae2290af6246a</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $cbBTC - Aave
2. Borrow $ETH
   1. 60.83% deposit for 20% buffer against LTV
3. Flash loan 2.5x the borrowed $ETH amount
   1. 5% buffer from LTV
4. Swap all $ETH → $cbETH
5. Lend all $cbETH - Aave
6. Borrow $ETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Aave
3. Withdraw $cbETH collateral - Aave
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $cbBTC collateral - Aave
7. Withdraw $cbBTC
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~0.21% ](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3)USDC Supply Interest
* [\~2.43%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [73%](https://app.aave.com/reserve-overview/?underlyingAsset=0xcbb7c0000ab88b473b1f5afd9ef808440eed33bf\&marketName=proto_base_v3) cbBTC Max LTV
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x5979d7b546e38e414f7e9822514be443a4800529\&marketName=proto_arbitrum_v3) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.09%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave
* cbBTC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/11fCowOqo8Q5hebFpyqdZg7F3_f6dz4z3mc-YUGRLXU8/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/11fCowOqo8Q5hebFpyqdZg7F3_f6dz4z3mc-YUGRLXU8/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1F24QvyHyp58FnN6ZCtfW51fzOza0apK5pRvkJaBLFB4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1F24QvyHyp58FnN6ZCtfW51fzOza0apK5pRvkJaBLFB4/edit?usp=sharing>
{% endembed %}


# cbETH Boosted USDC Lending - Aave & Compound

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:inbox\_tray: [Strategy Deposit Link](https://pro.factor.fi/strategies/0xee65d18cdc1c879822214a878660b13e8fa440f6)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:tools: [Strategy Builder Link](https://studio.factor.fi/?hash=0xef36c074cca61aed9708cf5fde5d4e00c71f371534e9cfd744d0608ac91d4af1)
{% endhint %}

## Description

<figure><img src="/files/foAC9FdvYWoG2bCQp6ic" alt=""><figcaption></figcaption></figure>

This strategy earns blended USDC and ETH yields by taking advantage of differences in Aave and Compound.

By depositing USDC into Aave, this strategy earns 1x the Aave USDC lending interest. This also allows the strategy to borrow WETH against the USDC collateral with a 20% buffer.&#x20;

Borrowed WETH from Aave is swapped for cbETH earning the interest differentials between cbETH liquid staking yields and Aave WETH borrow interest.

The cbETH is then used to create a 8.2x leveraged cbETH:ETH position (2.5% liquidation buffer) which earns an additional 7.2x interest differential between cbETH liquid staking yields and Compound WETH borrow interest. The total WETH borrowed on Compound also earns additional COMP borrow rewards.

## Strategy Performance Conditions

<figure><img src="/files/HKFN5gj5OxquoHx4Q3bU" alt=""><figcaption></figcaption></figure>

{% tabs %}
{% tab title="Profit" %}

* cbETH continuously increases in value vs WETH.
* WETH borrow cost is less than cbETH liquid staking yields across Aave and Compound (including COMP rewards).
* USDC supply interest is greater than the interest differentials between cbETH yield and WETH borrow.
  {% endtab %}

{% tab title="Loss" %}

* cbETH depegs from ETH.
* cbETH liquid staking yields falls below WETH borrow costs.
  {% endtab %}
  {% endtabs %}

## Where Does The Yields Come From?

<figure><img src="/files/oOFbsGcU3iFWIjxs4VKn" alt=""><figcaption></figcaption></figure>

## Comparisons

<figure><img src="/files/DKdf1KugDZ4cnZKoCKMB" alt=""><figcaption></figcaption></figure>

## Factor Studio Strategy

<figure><img src="/files/5p1olcrV0FGwJWpJWUYx" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xef36c074cca61aed9708cf5fde5d4e00c71f371534e9cfd744d0608ac91d4af1">https://studio.factor.fi/?hash=0xef36c074cca61aed9708cf5fde5d4e00c71f371534e9cfd744d0608ac91d4af1</a></p></figcaption></figure>

{% tabs %}
{% tab title="Main strategy" %}

1. Lend $USDC - Aave
2. Borrow $ETH
   1. 62.5% deposit for 20% buffer against LTV
3. Swap borrowed $ETH → $cbETH
4. Flash loan 7.2x the borrowed $cbETH amount
   1. 2.5% buffer from LTV
5. Lend all $cbETH - Compound
6. Borrow $ETH&#x20;
7. Swap $ETH to $cbETH to cover flash loan
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Flash loan $ETH
2. Repay $ETH debt - Compound
3. Withdraw $cbETH collateral - Compound
4. Swap $cbETH → $ETH
5. Repay $ETH debt - Aave
6. Withdraw $USDC collateral - Aave
7. Withdraw $USDC
   {% endtab %}
   {% endtabs %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.86%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Supply Interest
* [\~2.28%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Max LTV
  {% endtab %}

{% tab title="Compound" %}

* [\~2.36%](https://app.compound.finance/markets/weth-basemainnet) WETH Borrow
* [\~0.30%](https://app.compound.finance/markets/weth-arb) COMP Borrow Rewards
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.27%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1QkVZ5UDyhseZYfkbifIQ02EmeId4QNvaoNrirZE8vQ4/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1QkVZ5UDyhseZYfkbifIQ02EmeId4QNvaoNrirZE8vQ4/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1RjV85lCCneej7R3vJM8LL6aS5iPYYo2fbbQR9khO69E/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1RjV85lCCneej7R3vJM8LL6aS5iPYYo2fbbQR9khO69E/edit?usp=sharing>
{% endembed %}


# Trading Type Strategies

## Overview

The profit condition for the strategies in this section rely more on relative token price movements. In other words, these strategies speculate on market direction.


# Arbitrum (ChainID: 42161)


# WBTC Base Switch On rETH For ETH & USDC Yields

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x1D45B72F007cacB78333AB2aC10128562CabC44c)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0xb53572bd4b8e3a597bfb7589faec5828432da28cfd9e16de9cd93097c7ce35ab)
{% endhint %}

## Description

<figure><img src="/files/8oSf7qEZ7inhVsJRyooR" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xb53572bd4b8e3a597bfb7589faec5828432da28cfd9e16de9cd93097c7ce35ab">https://studio.factor.fi/?hash=0xb53572bd4b8e3a597bfb7589faec5828432da28cfd9e16de9cd93097c7ce35ab</a></p></figcaption></figure>

An ETH rotation play which earns USD yields on rETH by switching the base asset from USD → WBTC. This strategy profits when ETH outperforms WBTC and is profitable as long as the generated USDC lending interest is greater than rETH to WBTC underperformance.

\+ USDC Lending Interest

\+ rETH Liquid Staking Yields

\+ rETH Lending Interest

\- WBTC Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Flash loan $rETH equivalent to 100% USDC value
2. Lend $rETH - Aave
3. Lend $USDC - Aave
4. Borrow $WBTC
   1. 100% of initial $USD value
5. Swap all $WBTC → $rETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Close remaining debt
2. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~6%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~0.02%](https://app.aave.com/reserve-overview/?underlyingAsset=0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8\&marketName=proto_arbitrum_v3) rETH Supply Interest
* [\~0.3%](https://app.aave.com/reserve-overview/?underlyingAsset=0x2f2a2543b76a4166549f7aab2e75bef0aefc5b0f\&marketName=proto_arbitrum_v3) WBTC Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
* [69%](https://app.aave.com/reserve-overview/?underlyingAsset=0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8\&marketName=proto_arbitrum_v3) rETH Max LTV
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.7%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* WETH, and by extension rETH, outperforms WBTC for the period of the deposit.
* USDC supply interest and rETH liquid staking yields are greater than WBTC borrow costs.
  {% endtab %}

{% tab title="Loss" %}

* WBTC outperforms WETH.
* rETH depegs from ETH.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1FvNDdfvoec_mQCiDzIPjEGrJWM652I1S2fWFMlK83qE/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1FvNDdfvoec_mQCiDzIPjEGrJWM652I1S2fWFMlK83qE/edit?usp=sharing>
{% endembed %}

## Estimate Returns

The profitability of this strategy depends on the performance of ETH relative to WBTC. Aside from potential trading returns, the strategy also earns a net yield of \~6.7% (as of 06/03/25) that comprises of:

* USDC lending interest
* rETH liquid staking yields
* WBTC borrow costs


# Delta Neutral Type Strategies

## Overview

The strategies in this section combine Long and Short positions to hedge any upside/downside risks against each other. This shields the strategy from short term market volatility while still enabling yields to be generated on the respective Long/Short positions.


# Arbitrum (ChainID: 42161)


# Delta Neutral ETH With rETH & USDC Yields

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x1489426648E9E563d0c70D3381aF5ED5dd5CFB77)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0xd2e21a69f28fdfa35c61b8308a18bed944f4c87fc8979836b85709881f925928)
{% endhint %}

## Description

<figure><img src="/files/yBpxFDXZ0Eu4BgdpmPNd" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0xd2e21a69f28fdfa35c61b8308a18bed944f4c87fc8979836b85709881f925928">https://studio.factor.fi/?hash=0xd2e21a69f28fdfa35c61b8308a18bed944f4c87fc8979836b85709881f925928</a></p></figcaption></figure>

By combining 2 opposing Long and Short positions, this strategy earns yields while maintaining its value throughout short term market volatility. A fall in ETH’s price is covered by a short ETH position and vice versa.

Half of the USDC deposited is used to create a 2x USDC/ETH Short position with a 20% liquidation buffer. This earns 1x USDC lending interest (on initial deposit amount) with a 0.5x ETH borrow position. If ETH price drops relative to USDC, the debt owed decreases and vice versa.

To offset the risks of increasing debt on the USDC/ETH short position, the remaining USDC deposited is swapped for rETH. The upside exposure of holding rETH cancels out the downside exposure of the ETH debt from the above short USDC/ETH position. Additionally, rETH continues to earn liquid staking yields which historically has been above the ETH borrow interest.

\+ USDC Supply Interest

\+ rETH Liquid Staking Yields

\+ rETH Supply Interest

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Create 2x USDC/ETH Short
   1. Flash loan 2x of 50% $USDC balance
   2. Lend 50% initial $USDC + flash loaned $USDC amount
   3. Borrow $ETH to cover flash loan
   4. Swap $ETH → $USDC
2. Swap 50% $USDC deposit for $rETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Close remaining debt
2. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~6%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Supply Interest
* [\~0.02%](https://app.aave.com/reserve-overview/?underlyingAsset=0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8\&marketName=proto_arbitrum_v3) rETH Supply Interest
* [\~2.4%](https://app.aave.com/reserve-overview/?underlyingAsset=0x82af49447d8a07e3bd95bd0d56f35241523fbab1\&marketName=proto_arbitrum_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0xaf88d065e77c8cc2239327c5edb3a432268e5831\&marketName=proto_arbitrum_v3) USDC Max LTV
* [69%](https://app.aave.com/reserve-overview/?underlyingAsset=0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8\&marketName=proto_arbitrum_v3) rETH Max LTV
  {% endtab %}

{% tab title="Rocket Pool" %}

* [\~2.7%](https://rocketpool.net/) rETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* USDC supply interest and rETH liquid staking yields are greater than WETH borrow costs.
* rETH price continuously increases relative to WETH.&#x20;
  {% endtab %}

{% tab title="Loss" %}

* Long term WETH borrow costs is greater than USDC supply interest and rETH liquid staking yields.
* rETH depegs from ETH.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1q7QjmHZJHceg6Hw9291LVLXN0N2b_ht06tpsD9CbDzo/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1q7QjmHZJHceg6Hw9291LVLXN0N2b_ht06tpsD9CbDzo/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/14X58mVppX6Sa2SlJ5KQ3E8J6iPtxT9xHAtzlylu4X6w/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/14X58mVppX6Sa2SlJ5KQ3E8J6iPtxT9xHAtzlylu4X6w/edit?usp=sharing>
{% endembed %}


# Base (ChainID: 8453)


# Delta Neutral ETH With cbETH & USDC Yields

{% hint style="success" %}
Visit Discover to deposit into this strategy and automate your yields!

:arrow\_right: [Strategy Deposit Link](https://pro.factor.fi/strategies/0x42B5b7B5b0B33ce41bF19d1609aacB0f006D613a)
{% endhint %}

{% hint style="info" %}
Visit Studio to copy/fork and tweak this strategy!

:arrow\_right: [Strategy Builder Link](https://studio.factor.fi/?hash=0x2a8e47f3bbe733a5d49aa613d8b81dcf7caf11fb8213db2796055075de49dd22)
{% endhint %}

## Description

<figure><img src="/files/tD8ONG5q6wvV6n2Eh4K1" alt=""><figcaption><p><a href="https://studio.factor.fi/?hash=0x2a8e47f3bbe733a5d49aa613d8b81dcf7caf11fb8213db2796055075de49dd22">https://studio.factor.fi/?hash=0x2a8e47f3bbe733a5d49aa613d8b81dcf7caf11fb8213db2796055075de49dd22</a></p></figcaption></figure>

By combining 2 opposing Long and Short positions, this strategy earns yields while maintaining its value throughout short term market volatility. A fall in ETH’s price is covered by a short ETH position and vice versa.

Half of the USDC deposited is used to create a 2x USDC/ETH Short position with a 20% liquidation buffer. This earns 1x USDC lending interest (on initial deposit amount) with a 0.5x ETH borrow position. If ETH price drops relative to USDC, the debt owed decreases and vice versa.

To offset the risks of increasing debt on the USDC/ETH short position, the remaining USDC deposited is swapped for cbETH. The upside exposure of holding cbETH cancels out the downside exposure of the ETH debt from the above short USDC/ETH position. Additionally, cbETH continues to earn liquid staking yields which historically has been above the ETH borrow interest.

\+ USDC Supply Interest

\+ cbETH Liquid Staking Yields

\- ETH Borrow Interest

## Strategy

{% tabs %}
{% tab title="Main strategy" %}

1. Create 2x USDC/ETH Short
   1. Flash loan 2x of 50% $USDC balance
   2. Lend 50% initial $USDC + flash loaned $USDC amount
   3. Borrow $ETH to cover flash loan
   4. Swap $ETH → $USDC
2. Swap 50% $USDC deposit for $cbETH
   {% endtab %}

{% tab title="Exit Strategy" %}

1. Close remaining debt
2. Swap all to withdraw token
   {% endtab %}
   {% endtabs %}

{% hint style="info" %}
**Exit Strategy**

Factor Discover also enables Depositors to permissionlessly withdraw from any strategy at anytime via an Exit Strategy.

Visit our [Exit Strategy explainer](/factor-studio/studio-pro/exit-strategy) to see how Factor Studio strategies can maximize returns while ensuring truly permissionless withdrawals.
{% endhint %}

## Protocol Parameters

{% tabs %}
{% tab title="Aave" %}

* [\~5.68%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Supply Interest
* [\~2.58%](https://app.aave.com/reserve-overview/?underlyingAsset=0x4200000000000000000000000000000000000006\&marketName=proto_base_v3) WETH Borrow Interest
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x833589fcd6edb6e08f4c7c32d4f71b54bda02913\&marketName=proto_base_v3) USDC Max LTV
* [75%](https://app.aave.com/reserve-overview/?underlyingAsset=0x2ae3f1ec7f1f5012cfeab0185bfc7aa3cf0dec22\&marketName=proto_base_v3) cbETH Max LTV
  {% endtab %}

{% tab title="Coinbase" %}

* [\~3.1%](https://www.coinbase.com/en-gb/earn/staking/coinbase-wrapped-staked-eth) cbETH Liquid Staking Yields
  {% endtab %}

{% tab title="OpenOcean" %}

* 0.1% Max Slippage Config
  {% endtab %}
  {% endtabs %}

## Strategy Performance Conditions

{% tabs %}
{% tab title="Profit" %}

* USDC supply interest and cbETH liquid staking yields are greater than WETH borrow costs.
* cbETH price continuously increases relative to WETH.&#x20;
  {% endtab %}

{% tab title="Loss" %}

* Long term WETH borrow costs is greater than USDC supply interest and cbETH liquid staking yields.
* cbETH depegs from ETH.
  {% endtab %}
  {% endtabs %}

## Calculation Template

{% hint style="success" %}
**Create Your Own Strategies!**

Create a copy of the sheet below and tweak it to create your own personalized strategy.
{% endhint %}

{% embed url="<https://docs.google.com/spreadsheets/d/1u86xqxLthHIBSp0flGGG-FqgCqW3qk5nEc_apkyhZI0/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1u86xqxLthHIBSp0flGGG-FqgCqW3qk5nEc_apkyhZI0/edit?usp=sharing>
{% endembed %}

## Estimated Returns

{% embed url="<https://docs.google.com/spreadsheets/d/1wekMatG1ZiGnJmoyz89oWqMUK3cPsukVHF8n7FgTQvE/edit?usp=sharing>" %}
<https://docs.google.com/spreadsheets/d/1wekMatG1ZiGnJmoyz89oWqMUK3cPsukVHF8n7FgTQvE/edit?usp=sharing>
{% endembed %}


# Factor Studio

Create Anything DeFi

## Overview

<figure><img src="/files/XqzAEaqGLfByny7lHdjQ" alt=""><figcaption></figcaption></figure>

Factor Studio is making DeFi accessible to all by reimagining how DeFi strategies can be created and shared. As Factor’s flagship product, Factor Studio embodies our mission to democratize access to open and pemissionless rails through user-centric design. Finding and creating DeFi strategies with a real edge is already hard enough hence Factor Studio was crafted to make the journey to financial autonomy easier.

* [**Private Strategies**](/factor-studio/studio)**:** Combine varying strategies across multiple DeFi protocols into one automated strategy with ease.
* [**Public Strategies**](/factor-studio/studio-pro)**:** Shorten your time to market for building managed strategies and start earning fees through user deposits on [Factor Discover](/factor-discover/factor-discover).

Built on the premise of flexible [building blocks](/factor-building-blocks/factor-building-blocks), Factor Studio functions as DeFi’s composability layer enabling cross-protocol strategies to be seamlessly integrated and automated. By abstracting implementation and operational complexities, Factor Studio enable DeFi strategies to be quickly iterated upon with no coding knowledge required. These strategies can then be shared resulting in a thriving community where anyone can participate.

<figure><img src="/files/9Nrl5B2HPfZVymAPntWS" alt=""><figcaption></figcaption></figure>

Factor Studio is a one-stop platform for creating Accessible, Composable, and Efficient DeFi strategies.

## Features

* **A Journey For Every User:** Whether you’re a beginner or a certified Degen, Factor Studio streamlines your DeFi journey through strategy automations and user-friendly interfaces (dapps or SDK).
* **Strategies Not Code:** Factor Studio comes packaged with the [Strategy Builder](/factor-studio/strategy-builder) enabling the creation of complex DeFi strategies via mix-and-matching [Factor Building Blocks](/factor-building-blocks/factor-building-blocks). Focus on building strategies and not on code implementations.
* **One Platform, All Of DeFi:** Mix-and-match intricate strategies across multiple DeFi protocols on a single platform. [Factor Adapters](/factor-adapters/factor-adapters) provides protocol abstractions that ensures seamless interoperability while being secure and permissionless.
* **Shorten Your Time To Market:** Leverage Factor Studio’s multiple automation tools and strategy templates to get your strategy up and earning in no time. Shorter iteration times not only lowers your overheads but also enables you to find better product market fit.
* **Inherited Security:** All of Factor Studio's factory contracts have been audited and undergoes consistent monitoring thereby ensuring your personalized strategy contracts are safe.
* **Native Governance Integration:** Strategies created via Factor Studio are seamlessly integrated with Factor governance contracts allowing you and your depositors to benefit from FactorDAO rewards.

## Integrations

{% hint style="success" %}
**Supported Protocols**

Factor Studio has integrated with multiple leading DeFi protocols, offering a broad spectrum of possibilities for your strategies.

Please refer to [Supported Protocols](/getting-started/supported-protocols) to view the full list of integrations across the various DeFi segments.
{% endhint %}


# Automated Strategies

## Overview

Factor Studio comes packaged with [Gelato Web3 Functions](https://docs.gelato.network/web3-services/web3-functions) enabling you to define time-based triggers for your strategies. Execute your strategy at a specified time or recurrently execute your strategy at configured intervals.

* **Time Based Triggers:** Automatically trigger your strategy at a specified time to take advantage of varying market conditions in the future.
* **Periodic Triggers:** Execute your strategy at specified intervals to regularly adjust your position’s liquidity allocations.
* **Rule Based Triggers:** Pair this with the IF Conditional Building Block and automatically trigger your strategy whenever your target condition is reached.

{% embed url="<https://www.gelato.network/web3-functions>" %}

## Automating Your Strategies

You can easily add time-based triggers to any of your mix-and-match strategies via the Factor Studio interface. Automation triggers are specified at a per strategy level enabling you to chain as many [Factor Building Blocks](/factor-building-blocks/factor-building-blocks) into a single automated strategy, By pairing recurring triggers with the IF Conditional Building Block, your strategies can be automatically executed only when the market conditions are suitable.

Strategy automation is fully on-chain thereby ensuring the reliability of strategy execution. Due to this design, you will first have to prefund your strategy with the required gas tokens for the transaction. Your strategy will not be executed if there is insufficient gas in the strategy contract.

Reduce your manual overheads and take advantage of market conditions by automating your strategies on Factor Studio.


# Conditional Strategies

## Overview

React in real time to market changes by equipping your automated strategies on Factor with conditional if-else logic. The IF Conditional Building Block enables you to specify strategy flows based on pre-defined conditions. The conditions are checked against a reliable data oracle during execution to ensure the reliability of your drag-and-drop strategy on the Factor Studio.

* **Conditional Execution:** Respond to market conditions in real time as your strategy executes alternative flows based on your pre-set conditions.
* **Rule Based Triggers:** Pair this with [Factor Studio Automation](/factor-studio/factor-studio/automated-strategies) and automatically trigger your strategy whenever your target condition is reached.

## Rule Based Strategies

The IF Conditional Building Block supplements the core DeFi Building Blocks enabling you to add rule-based flows to your strategy that is checked during strategy execution. This means you can pre-define any number of conditions for your strategy to follow thereby giving you fine grained control over how your strategy is executed no matter the market conditions.

Conditions are checked against data from [Chainlink](https://chain.link/) to ensure the security and reliability of the checks. The IF Conditional Building Block supports checking data for the following data types:

* Token
* Protocol (🚧)
* Position (🚧)
* Yield (🚧)
* Custom (🚧)

By chaining together various DeFi primitives with conditional logic, Factor Building Blocks allows anyone to create complex multi-protocol strategies with no coding knowledge required. You can drag-and-drop strategies from across DeFi into a single transaction and automatically execute it based on various market conditions.

Additionally, Factor Studio also enables time-based automations whereby you can trigger strategy execution at a specified time or recurrently execute your strategy at specified intervals.

## Things To Note

* **Strategy Execution Sequence:** Your strategy will be executed sequentially based on the the order of your selected building blocks (i.e. top to bottom based on the Strategy Builder UI). As such, any IF Conditionals will also follow this sequence.
* **Gas Costs:** As the strategy will be checked on execution, the checking of conditionals will still consume gas. If the condition is not met, the strategy will skip ahead to the next building block after the IF Conditional block thereby not incurring gas on the part of strategy defined within the IF Conditional block.
* **Strategy Termination:** All strategies will be executed in full with any remaining strategy after conditional blocks being executed until the final block in your strategy. Please use opposing IF Conditional blocks if your strategy flows might result in token reuse.


# Public Strategies

User-Created Strategies

## Overview

Factor Studio enables anyone to create and **share** public DeFi strategies. This paves the way towards an open and permissionless asset management marketplace powered by user-created strategies. From ideation to deposits, Studio ensures anyone can create, distribute, and monetize any DeFi strategy in minutes.

With Studio, Factor introduces Strategy-as-a-Service where all the technical barriers to get a strategy to market is abstracted away:

* **Coding Knowledge:** Drag-and-drop protocols from across DeFi into a single automated strategy.
* **Protocol Specific Functions:** Interact with the same core financial functions across all integrated protocols without having to understand each protocol particulars. DeFi becomes intent based.
* **Operational Overheads:** Aside from a good strategy, running a strategy also incurs secondary overheads such as hosting a user interface, security audits, etc.
* **Fragmented Liquidity:** Value transfer between protocols is no longer bottlenecked by the small number of channels created by a minority of developers that are experts in multiple protocols.

Focus on the strategy, let Studio handle the rest.

## Features

{% hint style="info" %}
The following features are in addition to those on [Private Strategies](/factor-studio/studio#features).
{% endhint %}

* [x] **Public Strategies In Minutes:** Get your DeFi strategy to market in record time without having to worry about various operational overheads.
* [x] **Permissionless Deposits:** Anyone can deposit into user created strategies and still benefit from strategy automation and optimisation by the strategy manager.
* [x] **Permissionless Asset Management:** Strategy managers can operationalize their public strategy without ever taking custody of depositor funds. Various strategy fees can be configured by the strategy manager.
* [x] **Seamless Strategy Distribution:** All user created strategies are immediately available for deposits via [Discover](/factor-discover/factor-discover). More advanced users can utilize the [Factor SDK ](/factor-sdk/factor-sdk)to distribute it on their own UI.
* [x] **Open And Transparent:** Anyone can become a strategy manager and all strategy actions are done on-chain providing accessibility and accountability.
* [x] **Trustless Asset Management:** Strategy factory contracts are [audited](/security/audits) while every vault is deployed with safety constraints to keep the strategy manager in check.&#x20;

## Integrations

{% hint style="success" %}
**Supported Protocols**

Factor Studio has integrated with multiple leading DeFi protocols, offering a broad spectrum of possibilities for your strategies.

Please refer to [Supported Protocols](/getting-started/supported-protocols) to view the full list of integrations across the various DeFi segments.
{% endhint %}




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