In this guide, you will find the basic information on how to open a leveraged position on the FODL platform. FODL enables you as a trader to utilize leverage for your trades, without having to pay funding rates and it is done in a completely decentralized manner. The leverage is derived from existing Defi building blocks, such as Compound and Aave.
First, you have to open the FODL app and connect your wallet to it
Next, you will need to choose the network you want to use. You have two options so far, but many more are on the way.
The two options are:
- Ethereum network
- Binance Smart Chain network (beta)
Then, you will have to decide what kind of position you would like to open. You can choose between LONG/SHORT/CORRELATED(farming)
LONG:
Supplied asset is a non-stablecoin
Borrowed asset is a stablecoin
You profit from from the price appreciation of the supplied asset against the stablecoin
SHORT:
Supplied asset is a stablecoin
Borrowed asset is a non-stablecoin
You profit from from the price depriciation of the supplied asset against the stablecoin
CORRELATED/FARMING
Supply + Borrow assets are generally correlated or the same (eg. DAI/DAI, or ETH/wBTC)
Designed to maximize governance token farming
Let's take a look at how you would open a “long” position:
You then have two options: you can select an asset to “supply” you think will go up against the asset you choose to “borrow” or you select an asset to “borrow” you think will go down against the asset you choose to “supply”
Next, you can select your desired leverage. You can use the slider or the pre-defined 2x/3x/4x/5x buttons
Enter the amount of the asset you want to “supply”, and press the blue ENTER POSITION button on the right
Next, you will need to approve the transaction in your wallet and then confirm it. After you have successfully opened the position, it should appear on your FODL dashboard!
IMPORTANT THING TO CONSIDER!: Before you make any trades, make sure you understand the risks of taking a leveraged position! The higher your leverage is, the more profitable your position will be if the market goes in your favor. However, if the market decides to head in the opposite direction, you will be subjected to equally high losses or in the worst-case scenario… a liquidation. By choosing lower leverage your positions will be safer!
Stay safu and happy trading!
Hope this helped you in any way friend! Cheers!
Related Guides that may interest you:
1.) HOW TO BUY THE $FODL TOKEN
2.) HOW TO LEND OR BORROW xFODL ON RARI CAPITAL’S FUSE POOLS
3.) HOW TO USE BOTS ON FODL
4.) HOW TO FARM FODL-MATIC LP ON QUICKSWAP IN LESS THAN 10 MINUTES
5.) HOW TO DO SINGLE CURRENCY STAKING ON FODL
6.) HOW TO INSTALL WALLET CONNECT AND CONNECT IT TO FODL FINANCE
“Disclaimer: This article is not trading or investment advice. The above article is for informational and educational purposes only. Please do your own research before purchasing or investing in any cryptocurrency or digital asset.”
