DefiTuna Docs
  • DefiTuna Introduction
    • DefiTuna - Our Mission
  • Introduction - Who is it for?
  • Onboarding
    • Requirements
    • How to open a position
    • Monitoring Opened Positions
    • How to Lend
    • Setting Up a Directional Bias
  • Platform Info
    • Supply APR
    • Yield (24h) Estimation
    • Borrow APR and Lending Utilization
    • Supported Pools
    • Terminology
    • Fees
    • Take Profit / Stop Loss
    • Liquidations
    • Compound
  • Transaction Priority Fees
  • Security and Risks
    • Audits
    • Platform risks
    • Terms of Use
    • Disclaimer
  • Learn More
    • FAQ
    • Understanding Pseudo Delta Neutral
    • Understanding Impermanent Loss
    • How to open different strategies
      • Position opening
      • Long Farming
      • Short Farming
      • Neutral Farming
      • Perpetual Swap on DefiTuna
  • Brand Kit
    • Brand Kit
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  • DefiTuna for Builders
    • SDK and Smart Contracts
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  1. Platform Info

Compound

PreviousLiquidationsNextTransaction Priority Fees

Last updated 2 months ago

Open positions generate yield as swaps take place within your designated range. Defituna allows users to compound yield directly into an already open position. There are several ways a user may choose to compound his position.

"Reduce Leverage" - By selecting this option your yield gets added directly into your position. Since yield is treated as collateral this in turn reduces your leverage and pushes liquidation prices further away (If leverage is used within the position).

"Reduce Leverage" helps reduce liquidation risk over time as well as grow your position size and liquidation price point is moved further away

"Keep Leverage" - By selecting this option your yield gets added alongside with the necessary amount of leverage in order to keep the same amount of token composition ratio (borrow vs collateral) thus maintaining the same amount of leverage in your position.

"Keep Leverage" helps amplify position size while maintaining the same amount of risk in terms of liquidation price point