Position opening

  1. Connect wallet

  1. Go to "Trade"

  1. Select a Pool. I wil proceed with SOL/USDC

  1. Deposit collateral in any token you prefer. The protocol will automatically swap it to meet the deposit ratio, so it doesn’t impact anything other than the swap amount. You can also deposit two tokens at the same time. In this example I used 100 USDC

  1. Choose your leverage: How much do you want to amplify your liquidity position? Higher leverage means more liquidity added and more fees earned. I set leverage to 2.67x means $167 will be borrowed and added to my $100, making my total position $267. This allows me to earn 2.67x more fees compared to farming with just my initial $100.

  1. Select which tokens to borrow to increase your position—this is called the borrowed ratio. By default, it’s set to 50/50, meaning the debt is evenly split between SOL and USDC. This ratio determines your directional exposure (red arrow) and allows you to create SHORT, LONG, or NEUTRAL positions based on your market outlook:

  • If you expect SOL to rise, borrow more USDC to benefit from SOL's growth.

  • If you expect SOL to fall, borrow more SOL to profit as the value of your debt decreases.

  • If you expect SOL to remain stable, borrow equally.

Important: SHORT and NEUTRAL strategies are ineffective with low leverage (below 2x). In this example, borrowing USDC at a 75/25 ratio gives a Semi-Long exposure.

  1. Select Range: Define your lower and upper price limits, as seen on platforms like Orca, Raydium, or Meteora. Narrow ranges can earn higher fees but demand frequent rebalancing. Wider ranges offer lower fees per trade but require less maintenance and provide more distance from liquidation. Note: Positions outside the selected range won't generate fees and may incur impermanent losses

  1. Consider your liquidation carefully: If it’s set too far, you may lose capital efficiency; if it’s too close or even within your range, it becomes risky. Borrowing a single token (100/0 ratio) results in one liquidation point, while borrowing two tokens creates two separate points—one for each token. Adjusting your borrow ratio, leverage, or range will directly impact the location of these points, so plan accordingly.

  1. Once everything is set, hit the 'Create Position' button to finalize your setup

  1. In the confirmation window, you’ll see the swap amount details along with all your selected parameters. Review them carefully, then click 'Farm' to proceed transaction confirmation in your wallet.

  1. If the transaction is successful, your position will appear under 'Opened Positions.' Take note of the available settings, which can help you monitor your position and toggle between token amounts and token values

Fun tip: You can claim your fees frequently and use them as collateral to open new leveraged positions. With leverage, the compounding effect becomes much stronger, leading to exponential position growth and impressive APY. Good luck, and may your profits soar!

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