APR Calculated on EZ-FI

Why does APR change when I input different amounts of assets?

Opening a leveraged position (especially for a large position) could result in changes in:

  • Asset Price in Liquidity Pool: That is because asset value in an AMM pool is always 50:50, so when users open a leverage position on EZ-FI, they may swap/trade to equalize the value of the asset deposited.

  • Lending interest: Imagine that opening a large leveraged position could result in a tremendous increase in borrowing interest.

  • Underlying farming APR: Incentives for a liquidity pool are always constant for a certain period. Thus more liquidity providing may result in an underlying farming APR dilution.

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