Compound

Open positions generate yield as swaps occur within your selected price range. Defituna offers users the ability to compound this yield directly into an already open position, allowing for greater capital efficiency. Users can choose between two compounding strategies:

Reduce Leverage

• With this option, your accumulated yield is added to your position as additional collateral, without increasing the borrowed amount.

• Since yield is treated as collateral, this reduces your overall leverage, lowers liquidation risk, and pushes the liquidation price further away.

• This strategy is ideal for users looking to de-risk while growing their position steadily over time.

Keep Leverage

• When selected, your yield is compounded along with additional borrowed funds, maintaining the original borrow-to-collateral ratio (i.e., your leverage remains unchanged)

• This means your position scales proportionally, increasing both your exposure and potential returns while keeping liquidation price points at the same level.

Auto-compounding

You can enable or disable auto-compounding in two ways:

• During position opening: Click the "Auto-compounding" button.

• For an existing position: Click on the position, then use the "Auto-compounding" panel that appears.