Introducing Leveraged Long/Short Farming
Eternal Finance offers Leveraged Short/Long Strategies that enable farmers to capitalise on price movement based on the token price prediction. The strategies are designed with a specific borrowing ratio between stable and non-stable tokens and invest in liquidity pools comprised of one non-stable coin and one stablecoin only. The strategy is built on leveraged yield farming and incorporates a specifically designed borrowing ratio between stable and/or non-stable tokens. The Long and Short portions of a yield farming position generate the Net Long/Short effect on the non-stablecoin. Currently, farmers can select Token Farm from $APT-Stable, $CAKE-Stable, and $WETH-Stable.
Advantages of Leveraged Short / Long Strategy
Eternal Finance’s Leveraged Short / Long Strategy is a viable alternative to Perpetual Futures Contracts, particularly in uncertain market conditions or when the price ceiling or floor has been reached. By opening a position with the Leveraged Short / Long Strategy, farmers can earn stable fees and yield without wasting the time value of their tokens.
The Leveraged Short / Long Strategy’s performance is positively correlated to time. Over time, the net income from the position gained further shifts the payoff curve, extending the strategies’ profitable range. Unlike the Perpetual Futures Contract, which incurs accumulating borrowing costs over time, the Leveraged Short / Long Strategy is resistant to time.
As you can see in the red highlighted part. By leveraging the position, you can amplify the potential returns and increase the risk of losses. It is important for you to carefully consider the risks and rewards of this strategy before implementing it. We have provided the estimated Price Effect and its co-relate PnL so that farmers can have an overview of the potential returns and risk.
About Eternal Finance
Eternal Finance is revolutionising the DeFi space with a one-of-a-kind portal that links VAMPIRES seeking safe and attractive APY with SORCERERS looking to maximize their returns with leverage and alpha.
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