Leverage
Borrowing against a position to multiply exposure — and amplify both gains and losses.
Stablecoin yield strategies often use leverage via Recursive lending loops or perp-funded basis trades. Headline APY scales with leverage; so does liquidation risk and tail loss. StableLens reports both unlevered and "with implied leverage" yield where relevant.
Related terms
- Recursive lendingBorrowing against deposited collateral, redepositing the proceeds, and looping to amplify exposure.
- LiquidationForced sale of collateral when a borrower's health factor falls below the protocol's threshold.
- Basis tradeLong spot + short perpetual (or futures) to harvest the funding-rate differential, structurally close to delta-neutral.