EZ Finance
  • Introduction
  • Overview
    • What's EZ-Fi?
    • Why EZ-Fi is unique?
    • EZ-Fi Links
  • Features
    • Leverage yield farming
      • Leveraged farming risk
      • Long leveraged farming
      • Short leveraged farming
    • Lending
    • Neutral Hedge farming (Soon)
    • Auto-Rebalance Vaults
      • Pseudo-Delta Neutral Strategy
      • PDN Rebalance
  • Knowledge
    • ibTokens
    • Types of pool
    • Benefits of Short/Long Position
    • APR Calculated on EZ-FI
    • Utility
    • Tokenomics
    • Fees
    • Auto-Compound
    • Insurance
  • Liquidation bounty
    • What is Liquidation & Liquidation Bounty?
  • Resources
    • Integration
    • FAQ
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  1. Knowledge

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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Last updated 2 years ago