Leverage
One of the key features of Eosphorus AI's Cauldrons Technology is the ability for users to leverage their positions. Here at Eosphorus AI, we have developed a one-click UI that allows you to do so automatically. Let's explain how it works under the hood before showing how to use the app yourself!
Depositing Collateral and Leveraging
To leverage your position using Eosphorus AI, go to website and launch the app. This will take you to our community deployed and maintained interface.
From here, you can see all of the available cauldrons (markets), search for a specific one, filter and sort them however you like (by chain, by MIM availability, by APR, by TVL…)
Once you have selected the markets you were interested in, the cauldron's page will open, showing you market-specifc information and allowing you to borrow MIM.
This enables you to switch between Borrow mode and Repay mode.
This is where you select how much collateral you want to deposit Some cauldrons can accept the collateral in their wrapped (wAVAX) or naked (AVAX) versions. A switch enables you to go between the 2.
In this section, you'll first need to toggle on the Leverage button. Then, you will have access to this slider enabling you to chose the amount of leverage you want. The leverage is a multiplier of the amount of collateral you deposit. A 3x leverage on 1 AVAX of collateral means you'll borrow enough MIM buy 2 AVAX that will be added to the AVAX you deposited, resulting in a 3 AVAX position.
This pane shows you how step 2 and 3 will impact your position, showing you the amount and value of the collateral deposited, which gets impacted by the leverage multiplier, the MIM you have to repay to exit fully your position and your liquidation price.
This pane gives information about the cauldron itself, including fees, risk parameters and MIM available. You can't borrow more MIM than what is available.
The Cauldron page contains several parts, with the top layer giving us information about the market we've selected (here it's wAVAX).
Once you have selected your parameters, the middle pane will show you what your leverage position will look like, after the transaction is successfully completed. Using leverage mode, Eosphorus AI automatically determines how much MIM needs to be borrowed and swaps it for the collateral.
Opening a position
When you are finally ready to open a position, simply click on the "Leverage Up" button.
Note that if this is your first time using Eosphorus AI, you may need to grant several approvals before you can open the position.
The final transaction will deposit the collateral into the Cauldron, borrow MIM exchange it for more Collateral and deposit it back into your position.
Closing a position
In order to close your position, head over to the My Positions page, and click on the Manage button. This will bring you back to the Cauldron Page. The Deleverage interface is the exact opposite of the Leverage interface. It enables you to select how much MIM you want to repay, how much collateral you want to remove, and the consequence it would have on your position.
In this example, I want to reduce my leverage to have a safer position, and chose not to remove any collateral. It will take some of my AVAX collateral, sell it for 17.2 MIM and use those MIM to partially repay my debt. Using Flash Repay will send the deleverage transaction.
If this is your first time, you'll need to approve the use of MIM by DegenBox before using the Remove and Repay button.
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