Leveraged Yield Farming

Leveraged Yield

‌PolyDragon will be the first leveraged yield farm on Polygon (Matic). ETH/MATIC lenders will be able to earn high interest on ETH/MATIC. The lending interest rate comes from leveraged yield farmers/liquidity providers borrowing these ETH/MATIC to yield farm/provide liquidity.

Yield farmers can get even higher farming APY and trading fees APY from taking on leveraged yield farming positions. By taking leverage, the protocol would borrow ETH/MATIC on users' behalf to yield farm.

How It Works

Liquidity providers can get even higher trading fees APY from taking on leveraged liquidity providing positions. By taking leverage, it would borrow ETH/MATIC on users' behalf to provide liquidity. For leveraged yield farming pools (all pools under Yield Farming Pools section that support more than 1x leverage), the APY comes from yield farming APY on leverage + trading fees APY on leverage.

This implementation will automatically reinvest the farmed tokens for leveraged yield farmers. All of the APY earned will be accrued to the position value. Additionally, as a part of our emissions, all the leveraged positions of more than 1x will also get FIRE on top.

A part of the users will be able to contribute to single staking pools with MATIC and ETH. Those pools will be utilized to leverage yield positions across the entire network.