Leverage Yield Farming

TVL

The total value locked of token in leverage farming pool

Leverage

Refers to the leverage strategy(up to 3x) used by farmers while farming.

Leverage = (Borrowed + Collateral) / Collateral

Trading Fees

Only applies to PancakeSwap pool. PancakeSwap charges 0.3% fees for every trade, of which 0.17% accrues to liquidity providers. The trading fees shown in page calculated based on 1x leverage and it will increase as leverage increases.

At 2x leverage, own one asset and borrow the opposite asset would not receive the trading fees refunds（No swap occurred).

Trading fees APR is calculated using the 7-day average of actual trading volume.

Borrowing Interest

Borrowing interest is the Lending APR multiplied by the utilization level of the pool, it determined by the triple-slope interest model. Refer to the key parameters.

BAGEL Rewards APR

Refers to the APR that Leveraged yield farmers earn BAGEL rewards in accordance to the position value.

BAGEL Rewards APR = (BAGEL Yearly Output * BAGEL Price * percentage of personal position value) / personal position value.

Compounding APY

APY assumes daily compounding

Price Impact & Trading Fees

Leverage yield farming involves borrowing and trading. DEX charges fees for every trades in accordance with the AMM, and occurs some fees such as slippage.

1.Trading fees is fixed: Currently in PancakeSwap is 0.25% and MDEX is 0.3%(subject to the latest new of DEX);

2.Slippage is affected by the size of the trading funds and the amount of funds in the DEX fund pool, but when Bagels Finance opens a position, it sets the trading slippage independently to avoid major price impact.

Debt Ratio, Liquidation Threshold and Risk Ratio

Refer to liquidation mechanism.