Synnax Multiply (looping)
What is Looping (Multiply)?
Looping, also known as leveraging, is the process of borrowing against your assets to increase your exposure and maximize yield. With Synnax Multiply, you can leverage positions on yield-bearing assets (sfrax, sfastUSD), allowing you to earn more over time by holding a larger position than your initial deposit would allow.
For example, if you hold an asset with a 7% annual yield and leverage 5x, your potential return becomes 5 × 7% = 35% (minus any swap or borrowing fees). This strategy helps you optimize gains while maintaining relatively low risk—provided you keep your collateral ratio healthy.
How Does It Work?
1. Go to the Markets Tab:
Navigate to the Markets tab within the Synnax platform.
2. Select Your Asset:
Choose the yield-bearing asset you want to loop.(e.g. iSEI)
3. Leverage Your Position:
Click on "Leverage" toggle and select the desired multiplier (1x, 2x, 5x). Make sure to monitor your collateral ratio regularly to avoid liquidation risks.
4. Exit Your Position:
When you’re ready to close the position, click on Repay, toggle off the leverage, and settle your position easily.
Why Use Synnax Multiply?
• Maximize Yields: Amplify your returns without needing additional capital upfront.
• Flexible Leverage: Choose how much risk you’re comfortable with (from 1x up to 10x).
• Simple Management: Easy-to-use interface for opening, adjusting, and closing positions.
Stay Safe
While looping is relatively safe if managed correctly, always ensure your collateral ratio remains stable and monitor your positions regularly to minimize the risk of liquidation.
Coming Soon:
Stay tuned for tutorial videos that will walk you through the entire Synnax Multiply process step-by-step!
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