Introducing leverage vaults on Hedge

What is leverage?

Simply put, leverage is when you borrow capital to invest in more of the collateral than you can afford to increase the returns on your investment.

Points to Remember

  • Leverage is when you borrow funds to amplify returns
  • Higher risks and higher rewards. It’s possible to lose your entire investment using leverage so be sure to understand all risks involved.

How it works

Imagine you have 10 SOL in your wallet and you are confident that the price of SOL is going to go up. You can’t afford to go buy more SOL, but you want to effectively increase your position size.

Adjust the slider to 1.8x leverage for the first iteration of leveraging
Example vault after being leveraged up 4x.
cr = collateral ratio, l = leverage multiple

Fees

When using the leverage feature you will be exposed to fees on Hedge as well as any swap.

Deleverage

When the time comes that you want to back out your leverage, you can do the process above in reverse to lower your exposure and repay the debt against your collateral. This will automatically sell collateral to repay debt in USH.

Powered by Jupiter Aggregator

This feature is powered by Jupiter Aggregator (jup.ag), Solana’s go-to order routing service. This is how Hedge can guarantee you get the best price for the swaps that power leverage.

What’s Next + Feedback

We’re very excited about launching leverage on Hedge. The feature is new and we’re looking for feedback from you!

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