Optimization & Leveraged Yield Farming Overview

Leveraged Yield Farming (LYF) is a pivotal feature, empowering users to enhance their investment returns by borrowing supplementary funds to bolster liquidity pool investments. This process entails utilizing existing funds as collateral to secure loans, which are subsequently used to acquire additional tokens. These tokens are then injected into the liquidity pool, augmenting its total value and thereby increasing potential returns for the user, while also exposing the user to higher potential losses.

LYF emerges as an exceptionally efficient avenue for maximizing capital efficiency. With no requirement for additional collateral assets, users can fully capitalize on the earning amplification derived from leverage. OpenWorld provides a range of strategies that cater to different risk preferences and market conditions, with the potential to significantly mitigate the impact of impermanent loss, ensuring the optimization of returns for users. This feature of OpenWorld is influenced by Extra Finance.

Additionally, OpenWorld offers features to manage concentrated liquidity with a range of strategies and optimize users' LP positions. For example, it allows for:

  • Collecting trading fees and rewards from farms and reinvesting them.

  • Unstaking and restaking the entire position when necessary to prevent it from going out of range.

  • Auto-compounding strategy that runs continuously to assist users in achieving higher returns.

This feature is designed to optimize investments and increase earnings.

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