Create a Leverage Cycle
as of 06/02/2022
If you can create a long or short position that uses leverage, you can cycle this leverage to increase further the exposure of that position. If a user makes a short position against EGLD, he would supply USDC, borrow EGLD against it, and then sell the EGLD. To start a leverage cycle, they would supply the USDC generated from the EGLD sale as additional collateral to get a loan of even more EGLD and repeat the process many times. Each collateral supply will permit a smaller borrow position, but there is a limit on the number of cycles performed.
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