Simplify Leveraging

Just a few clicks to leverage your position.

I don’t know if this has already been discussed, but there should be a way in Anchor to simply leverage your existing bLuna to get more bLuna for people who want to speculate on it’s price action.

The mechanism is simple: Provide bLuna as collateral > Borrow UST (at your preferred risk ratio) > Buy bLuna on Terraswap > Provide bLuna as collateral (repeat)

Although it is doable manually, it should be a two clicks process.
This would push up the bLuna price slightly to reflect more Luna’s actual price, but mostly, it would bring more collateral, and more borrow to Anchor.

This would imply probably a new tab on Anchor, where you would have an easy interface to understand that would let you choose how much leverage you’d want (1,5x, 1,75x…) and tell you how many loops this would take (1, 2, 3, 4…), you could choose your borrow % to manage your risk too, and you could see how much fees you’d have to pay.

Also, this could be done with any other collateral assets, bLuna was just an example.

I agree we have to start considering leverage. Maybe for whitelisted smart contract addresses first.


I also think we need to add some spice to our lending offering. It feels abit bland compared to all of the jazzy new lending protocols out there.