A rekt-free way to leverage
If I'm really bullish about the project and want to leverage my staking, but I don't want to face liquidation risk. Then soft leverage is the perfect tool for me to manage the risk.
- I will predict price of the token is higher on the Entropyfi (50,50)
- If the price is indeed higher at settlement, I will not only benefit from the additional boosted rebase reward, but also the price appreciation of the token
- I cannot get liquidated if the market does not go as I planned. I will only lose their rebase reward
- The original deposit of the soft leverage users is retained and will earn the boosted rebase reward if we see a positive price movement in the next epoch