Intro to Leveraged Yield Farming - Overall

Curious about Leveraged Yield Farming? Unsure about the customized farming strategies offered by Extra Finance? No worries! -Follow Intro of LYF for a detailed introduction and insights.

LYF, or Leveraged Yield Farming, is a DeFi-native financial strategy that involves farming with leverage. It was first introduced during DeFi summer and has since proven to be highly effective in practice.

Consider 3x LYF as an example, whereby twice valued capital is borrowed and invested in the same liquidity farming pool. Ideally, 3x LYF can almost triple the APR of normal yield farming, and the final APY can be further enhanced with auto-compound.

However, the leverage ratio is not the only factor to consider in LYF. As the market continues to rapidly evolve, the price of tokens in your chosen trading pair will play a critical role in determining your final earnings.

Many factors impact your earning performance, such as the tokens you initially hold, the tokens you borrow to add leverage, the leverage ratio, and more. Extra Finance offers various farming templates for different market conditions, making LYF more accessible to DeFi users.