⚖️Strategy 1｜Fulcrum Strategy

What is Fulcrum Strategy

Fulcrum Strategy allows users to leverage quality interest-bearing assets, with options for up to 10X leverage

Strategy Mechanism

NX Finance provides two vaults for users: lending vault & leverage vault. And JLP will be used as an example to explain how Fulcrum Strategy works.

---

By integrating the operations of lending vault and leverage vault, an enhanced yield on JLP is achieved. This strategic alignment is aimed at optimizing returns and capital efficiency for lenders, and breaking through the yield barrier by leverage strategy for borrowers. The lending vault and leverage vault function as a pair to complement each other through the following steps:

1. Lenders can deposit USDC/USDT into the lending pool in order to earn yield as the reward.

2. To increase its JLP holdings, leverage vault borrows USDC/USDT from the lending vault to leveraging its position in JLP.

3. NX Finance utilizes the capital to purchase JLP from Jupiter Exchange.

4. The lending pool compensates lenders with a real-time APR, the higher utlization rate the higher APR. Simultaneously, this arrangement provides borrowers the opportunity to attain a boosted yields on their borrowed amounts.