Boosts
Last updated
Last updated
Adrastea goal is to bring additional boost on your assets, by providing clear leverage and high capital efficiency through isolated pairs.
The leverage is pre-defined for assets to maintain relatively safe-easy additional yield options. Pro users: Adrastea development roadmap includes launching custom leverage for more advanced users who is willing to build own risk investment profiles.
When a user clicks the boost button, several actions occur in the background:
The user’s boosted position is used as collateral to borrow isolated liquidity from passive pools.
This passive pool liquidity is utilized on Meteora Swap to buy more of the asset in the boosted position.
All relevant details about the user’s position are recorded on-chain in the ledger.
When the user decides to close the position, the leveraged asset is sold on Meteora, the borrowed amount is returned to the passive pools, and the final earnings are calculated. This entire process is completed in a single transaction, allowing the user to claim their collateral along with the earnings.
Borrow APY Borrow APY is deducted from the user’s position (collateral) for borrowing liquidity from passive pools. This APY can fluctuate based on the utilization of the passive pools’ liquidity. It’s crucial to understand how the borrow APY works and to regularly monitor your positions.Learn more about passive pools utilisation.
Adrastea understands the complexity of manual historical calculations, so the protocol introduces on-chain records of the total amount paid for borrowing. This allows the user to see exactly:
Earnings: The monetary value earned by the position.
Borrow Paid: The total amount paid to passive pools for borrowing liquidity over time.
PNL (Profit and Loss): The final profit (loss), calculated as earnings minus the borrow paid.
It’s also important to track the liquidation price. Borrowing liquidity for boosting carries liquidation risks. Even with predefined leverage, reaching the liquidation point may not be easy. It’s the user’s responsibility to monitor the liquidation price in relation to the current price. With the introduction of advanced leverage for experienced users, this parameter becomes crucial to track.