👓User Interface Introduction
If you are new to NX Finance, please make sure you are going to our official website: https://nxfinance.io/leverage/JLP
Asset to Collateral: You can deposit different collaterals, which will not be swapped to JLP.
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.
Borrow APR: This is the current borrow APR, which varies according to the utilization rate.
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%.
Formula: $70+(3-1)\times(70-20)$ = 170%
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).
Formula: $Leverage Yield - Borrow Yield$
Example of Calculation: Deposit JupSOL
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.
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