Disclaimer: Interacting with any third party protocol introduces additional smart contract risk. This strategy uses leverage which amplifies both upside and downside exposure. Make sure to maintain a conservative health factor to avoid liquidation.

Our ability to create risk-isolated markets allows traders to build leveraged positions on 𝐚𝐧𝐲 token we support - not just blue chips. Try here:

t.co

#SiloTheRisk

5⃣ Outcome By creating the above position, we now have: 1. Amplified exposure to PENDLE/USDC 2. Amplified exposure to deposit rewards Our risk is: 1. Amplified losses if PENDLE/USDC goes in the wrong direction 2. Liquidation if Health Factor deteriorates too much

4⃣ Repeat 1⃣ to 3⃣ Now we can repeat the previous steps to get to your desired leverage (note this step is limited by your long tokens LTV). Just doing 1⃣ will allow you to improve the Health Factor of your current position while amplifying your deposit rewards!

3⃣ Swap quote token for long token Swapping borrowed $USDC for $PENDLE creates a long PENDLE/USDC position. Since the loan is denominated in $USDC and the position and collateral are both $PENDLE, our $PENDLE exposure is now leveraged!

2⃣ Borrow quote token The quote token defines the market you are longing against. Borrowing $USDC? You are looking to long PENDLE/USDC Borrowing $ETH? You are looking to long PENDLE/ETH This is a long PENDLE/USDC position since $USDC is borrowed.

1⃣ Deposit your long token Here we are depositing $PENDLE into the PENDLE-ETH-USDC silo to earn 3.5% Total APR. Your deposit can now be used as collateral to borrow either $ETH or $USDC.