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  1. PROTOCOL MECHANISM
  2. Strategy 1|Fulcrum Strategy

User Interface Introduction

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Last updated 16 days ago

If you are new to NX Finance, please make sure you are going to our official website:

  1. Asset to Collateral: You can deposit different collaterals, which will not be swapped to JLP.

  2. Asset to Borrow: We will swap the borrowed asset to JLP. Tip: Borrowing SOL means you are shorting SOL and longing JLP, which acts as a hedge strategy.

  3. Borrow APR: This is the current borrow APR, which varies according to the utilization rate.

  4. APR: The base APR reflects the average 4-week JLP APY to showcase a long-term yield leverage reward for users.

How to Calculate the APY:

Example 1: Using JLP as Collateral

Assume a 3X leverage; JLP base APY is 70%; Borrow rate is 20%.

Example 2: Using Other Assets as Collateral

Only consider the leverage yield minus the borrow yield (APY will be lower than using JLP as collateral).

Example of Calculation: Deposit JupSOL

  1. Health Factor: The health factor determines when liquidation will occur if you borrow stablecoins with the assumption of 0 interest rate.

Liquidation Threshold: The following graph illustrates the correlation between leverage multiple and JLP drop required for liquidation (Assume you depsoit JLP as collateral and borrow USDC/USDT and without any borrowing interest rate)

Leverage Multiple

JLP Drop

2X

50%

3X

33%

4x

25%

5X

20%

Airdrop Reminder: You MUST create/join a team to join Point Nadventure. Otherwise, no point will be calculated no matter how much you have deposited.

Formula: 70+(3−1)×(70−20)70+(3-1)\times(70-20)70+(3−1)×(70−20) = 170%

Formula: LeverageYield−BorrowYieldLeverage Yield - Borrow YieldLeverageYield−BorrowYield

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https://nxfinance.info/leverage/JLP
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