# Strategy 1｜Fulcrum Strategy

## What is Fulcrum Strategy <a href="#what-is-fulcrum-strategy" id="what-is-fulcrum-strategy"></a>

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

## Strategy Mechanism <a href="#strategy-mechanism" id="strategy-mechanism"></a>

NX Finance provides two vaults for users: [**lending vault**](/nx-finance-whitepaper/protocol-mechanism/strategy-1-fulcrum-strategy/lending-vault.md) & [**leverage vault**](/nx-finance-whitepaper/protocol-mechanism/strategy-1-fulcrum-strategy/leverage-vault.md). 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.

<figure><img src="/files/pzp1BE4BL6xsNw0jufsn" alt=""><figcaption></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://nx-finance.gitbook.io/nx-finance-whitepaper/protocol-mechanism/strategy-1-fulcrum-strategy.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.