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  • Leveraged rangesPools
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  • LiquidationsProtocol
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Contents

Pools

Leveraged ranges

A leveraged range adds tokens borrowed from Lend to your margin and provides them all as liquidity, so the same margin earns fees on a position several times its size.

Size and debt

position value = margin × leverage
debt = margin × (leverage − 1)

For example, 2,000 USDC of margin at 4× provides 8,000 USDC of liquidity and borrows 6,000 USDC of tokens from Lend. SOL/USDC ranges go up to 5× and JitoSOL/SOL ranges up to 8×.

The debt mix sets the exposure

You choose which token the position borrows. The liquidity is the same either way; what changes is how the position’s value moves with the price. Take 1,000 USDC of margin at 4× in a SOL/USDC range centred on the price, holding 2,000 USDC of SOL and 2,000 USDC:

BorrowedDebtNet SOL exposureBehaves like
USDC only3,000 USDC+2,000A range and a long
Both, in the range’s ratio1,500 USDC of SOL + 1,500 USDC+500A 1,000 USDC range, earning 4× the fees
SOL only3,000 USDC of SOL−1,000A range and a short

Margin ratio

A leveraged range is measured by its margin ratio: the part of the position that is yours.

margin ratio = (position value + uncollected fees − debt value) ÷ position value

The position value follows the tokens the range holds at the current price, and the debt grows at its reserves’ borrow rates.

PoolTo openMaintenance
SOL/USDC20.0%10%
JitoSOL/SOL12.5%6%

At maintenance the position can be liquidated. Adding margin raises the ratio at once.

Net yield

Leverage multiplies the fees and adds the cost of the debt.

net APR on margin = fee APR × leverage − borrow APR × (leverage − 1)

For example, liquidity earning a 20% fee APR, borrowed at 6% and run at 3×, nets 20% × 3 − 6% × 2 = 48% on margin.

Opening and closing

  1. 1

    Set the range and the margin

    Margin comes from your account’s deposits, in either of the pool’s tokens.

  2. 2

    Set leverage and debt mix

    The preview shows the debt, the margin ratio and the prices where the position reaches maintenance.

  3. 3

    Open

    One transaction borrows from Lend, swaps into the range’s ratio and mints the liquidity.

  4. 4

    Close

    The liquidity is removed, the debt repaid, and the remaining tokens return to your account.