Let's talk about Leverage Takers, what do they get. Access to Amplified Capital:.
23 Dec 2023, 14:00
Let's talk about Leverage Takers, what do they get?
1️⃣ Access to Amplified Capital:
• LTs have the opportunity to invest more capital than they provide in collateral.
• This “free” access to borrowed liquidity allows them to potentially increase their investment returns.
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5Archimedes FinanceARCH #2395
23 Dec 2023, 14:00
6️⃣ Incentive Alignment:
• The protocol synchronizes the interests of LTs and LPs, encouraging LTs to uphold robust investment strategies, as liquidations are not beneficial for either group.
• This sustainable model ties LTs' success to the overall health of the ecosystem.
Incentive Alignment:.
6️⃣ Incentive Alignment:
• The protocol synchronizes the interests of LTs and LPs, encouraging LTs to uphold robust investment strategies, as liquidations are not beneficial for either group.
• This sustainable model ties LTs' success to the overall health of the ecosystem.
Archimedes FinanceARCH #2395
23 Dec 2023, 14:00
5️⃣ Role in Protocol Sustainability:
• LTs contribute to the overall health and sustainability of the protocol.
• Their responsible borrowing and investment strategies help maintain a balance in the liquidity pool.
Role in Protocol Sustainability:. • LTs contribute to the overall health and sustainability of the protocol.
5️⃣ Role in Protocol Sustainability:
• LTs contribute to the overall health and sustainability of the protocol.
• Their responsible borrowing and investment strategies help maintain a balance in the liquidity pool.
Archimedes FinanceARCH #2395
23 Dec 2023, 14:00
4️⃣ Profit Sharing and Fees:
• While LTs do not pay ongoing interest, they share the profits from their leveraged strategies with LPs.
• They may face fees such as liquidation fees (if applicable) and a small exit fee on profits when voluntarily closing a position.
Profit Sharing and Fees:.
4️⃣ Profit Sharing and Fees:
• While LTs do not pay ongoing interest, they share the profits from their leveraged strategies with LPs.
• They may face fees such as liquidation fees (if applicable) and a small exit fee on profits when voluntarily closing a position.
Archimedes FinanceARCH #2395
23 Dec 2023, 14:00
3️⃣ Collateral and Risk Management:
• LTs provide collateral to secure the funds they borrow, which acts as a safety buffer.
• The collateral is crucial in managing the amplified risk that comes with leveraged investing.
Collateral and Risk Management:. • LTs provide collateral to secure the funds they borrow, which acts as a safety buffer.
3️⃣ Collateral and Risk Management:
• LTs provide collateral to secure the funds they borrow, which acts as a safety buffer.
• The collateral is crucial in managing the amplified risk that comes with leveraged investing.
Archimedes FinanceARCH #2395
23 Dec 2023, 14:00
2️⃣ Strategic Investment Opportunities:
• LTs can direct borrowed funds into single or multi-pool strategies offered by the protocol.
• These strategies are based on automated algorithms designed to maximize returns by leveraging different pools and rebalancing as necessary.
Strategic Investment Opportunities:.
2️⃣ Strategic Investment Opportunities:
• LTs can direct borrowed funds into single or multi-pool strategies offered by the protocol.
• These strategies are based on automated algorithms designed to maximize returns by leveraging different pools and rebalancing as necessary.