Leverage Lending

Leverage Lending is a strategy that allows users to increase their yield by borrowing against staked assets. By utilizing leverage, users can enhance capital efficiency and optimize their staking positions, while maintaining access to liquidity.

This approach is particularly beneficial for experienced DeFi users looking to maximize staking rewards through automated borrowing strategies without requiring additional capital investment.

🟠 How Leverage Lending Works?

Leverage Lending enables users to use staked assets as collateral to obtain additional capital. The borrowed funds can then be automatically allocated into various high-yield strategies, such as additional staking, farming, or trading, based on user preferences.

Example Workflow:

1. The user stakes assets on FlowDex.

2. The staked position serves as collateral, allowing the user to borrow funds.

3. The system automatically allocates borrowed funds into profitable DeFi strategies such as staking, farming, or liquidity pools.

4. The user repays the borrowed amount with interest, while earning higher overall returns through optimized capital usage.

🟠 Benefits of Leverage Lending on FlowDex

Automated Yield Optimization

• Borrowed funds are automatically deployed into high-yield strategies, maximizing returns with minimal effort.

• Users can access additional liquidity without manual allocation, reducing complexity in portfolio management.

• While assets remain staked, users still gain access to extra capital that works for them.

• The system automatically identifies the most profitable strategies, ensuring the highest possible yield for borrowed funds.