Leveraged Volatility Farming (LVF)

Leveraged Volatility Farming (LVF) is a capital-efficient yield amplification strategy that allows users to access enhanced LP rewards without supplying both sides of a trading pair. Users deposit pTKN, borrow the paired asset (e.g., ETH or USDC), and create a liquidity position in a pTKN/Paired Asset pool. This forms a synthetic leveraged LP position where the collateral and borrowed asset co-exist within a single unified structure.

LVF uniquely enables users to obtain leveraged exposure to volatility farming rewards using a self-collateralizing position, without relying on external leverage, overcollateralization models, or emissions.

LVF provides numerous benefits to borrowers, including: · Access enhanced LP rewards with only one-sided exposure, no need to supply both assets

· Avoid selling the underlying asset thus ensuring full exposure to pTKN is retained

· Participate in high-yield liquidity provisioning with amplified exposure to VF rewards

· Contribute to Pod depth and arbitrage frequency, increasing long-term pTKN value

Last updated