Module 3.1｜What is Fulcrum Strategy
Beginner’s Guide: Understanding Fulcrum Strategy
Fulcrum Strategy is a core component of NX Finance, designed to maximize yield for users through leveraged yield farming. It allows users to amplify their potential returns by borrowing against their deposited assets and reinvesting them into high-yield opportunities.
Key Features
Leveraged yield farming up to 7x
Utilizes different tokens as collateral (JLP/jupSOL/sSOL/vSOL)
Automated risk management and liquidation protection
Flexible deposit and withdrawal options
How Fulcrum Stands Out
Fulcrum differentiates itself by offering a balance between high potential returns and risk management, allowing users to participate in DeFi yield strategies with enhanced capital efficiency.
User Interface Introduction
The Fulcrum Strategy interface is designed to be intuitive and user-friendly, allowing both novice and experienced users to easily navigate and manage their positions. Here's an overview of the main components you'll encounter:
Before you open a position
Notification Bar: Reminder of users that only 1 position is allowed to be opened, you cannot open multiple positions in Fulcrum Strategy.
Slippage Setting: User can adjust slippage & transaction priority through the setting.
Add Position: Where you open your position; if you want to close your position, click the "Withdraw" button next to it.
Asset to Collateral: There are different collateral options, which will not be swapped to JLP.
Asset to Borrow: Select the asset you would like to borrow, the corresponding asset will be swapped to JLP.
Leverage Adjustment Bar: Adjust the bar to select the leverage ratio that you favour.
Borrow APR: The borrow APR of the asset you borrow, which varies according to the utilization rate.
Est. NX Point Earned: The estimated NX point that you can earn from your position everyday, which eventually can be converted to NX token.
Performance Fee from Profit: A performance fee of 10% will be assessed on the profits generated by leveragers.
After you open a position
Your Leverage Multiplier: Your current leverage ratio, higher ratio you chose, higher risk you bear.
Current JLP Price: The current JLP price, data retrieved from Jupiter.
Unrealized P&L: Displays only the P&L from the leveraged portion, excluding the P&L from the collateral portion.
Liquidation Price: A direct indicator reminding you of the price that liquidation will be executed.
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