Prologue Leverage
Last updated
Last updated
Prologue Leverage is an exclusive feature for Prologue NFT Holders, which gives them the ability to take out loans against their vault positions.
This effectively creates leverage on their Prologue vault deposit. The borrowed ETH is then auto-compounded back into the Prologue vault.
Prologue Leverage allows Prologue vault depositors to boost their yield.
Each Prologue vault leverage position will have a Maximum Loan Amount, set at 150% of your original deposit, which can be reached in one transaction.
The Maximum LTV that you can possibly request at any time is 60%.
10ETH (starting amount) * 150% = 25ETH (Maximum Loan Amount)
15ETH (loan amount) / 25ETH (Maximum Loan Amount) = 0.6 or 60% (Maximum LTV)
Liquidation thresholds are set at 80% LTV (400% of deposited amount).
A Borrow APY will be determined as a function of Prologue Leverage Vault Utilization Rate. This matter is covered in depth in the Leverage Vault section of these documents.
