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Multiply (Strategies)

Figure 1: The Strategies page of Euler

Multiply strategies (also known as "Strategies") allow you to create leveraged positions with just a few clicks. These strategies automate the process of creating leveraged positions by combining supply, borrow, swap actions, and redeposit in a single transaction.

What are Multiply Strategies?

Multiply strategies on Euler allow you to instantly create a leveraged position with a single transaction. When you choose your desired leverage (multiplier) or target LTV, Euler automatically calculates and executes all the necessary steps—borrowing, swapping, and re-supplying — so you immediately reach your chosen multiplier level.

Key Benefits​

  • Capital Efficiency: Achieve greater exposure than your initial capital allows
  • Amplified Yields/Returns: Potential for higher returns (but also higher losses)
  • Simplified Leverage: Automates the complex looping process

Key Risks​

  • Increased Liquidation Risk: Leverage magnifies losses. A smaller adverse price movement can lead to liquidation compared to a simple borrow position
  • Interest Rate Risk: Changes in supply or borrow APYs can affect profitability
  • Smart Contract Risk: Standard risk associated with DeFi protocols

Finding Strategies

The "Strategies" tab in the Euler app (app.euler.finance/strategies) lists available multiply strategies.

  1. Navigate: Go to the "Strategies" tab.
  2. Browse Strategies: Each strategy card displays:
    • Market: The market name (e.g., Euler Prime)
    • Asset Pair: The collateral and debt assets (e.g., USDC / WBTC)
    • Max ROE: The maximum potential Return on Equity for the strategy
    • Points: Whether the strategy earns points (if applicable)
    • Rewards: Whether the strategy is eligible for rewards (if applicable)
    • Max Multiplier: The highest leverage multiplier available for this strategy
    • Correlated: Whether the assets are correlated (Yes/No)
    • Liquidity: The available liquidity for the strategy, shown in both USD and asset units
  3. View Details: Click "View details" to see more information and open a position.
note

Each APY value is inclusive of intrinsic yield (e.g., staking yield) and available rewards campaigns. Hover over the value for a breakdown.

tip

Strategies are sorted based on the Max ROE and liquidity.

Understanding the Borrow/Multiply Position Page

When you select a strategy, you're taken to a detailed page that is shared by both Multiply and Borrow actions. The only difference is the form shown, depending on whether you select "Multiply" or "Borrow" at the top.

Key Metrics and Sections:

  • Overview: At the top, you'll see the collateral and debt assets, the market, and a summary of key metrics.
  • Key Metrics: These include:
    • Supply APY: Yield for supplying the collateral asset.
    • Borrow APY: Cost (or reward) for borrowing the debt asset.
    • Max ROE: Maximum potential Return on Equity.
    • Max Multiplier: Highest leverage available for this pair.
    • LLTV: Liquidation Loan-to-Value ratio.
    • Liquidity: Available liquidity for borrowing, in both USD and asset units.
  • Oracle Section: This section shows which price oracle is used for the pair, providing transparency on how prices and risk are determined.
  • Tabs for Collateral and Debt: You can switch between the "Collateral" and "Debt" tabs to see more details about each vault, including risk parameters, governor, exposure, utilization, and more.
tip

The same page is used for both Multiply and Borrow. Simply select the desired action at the top to switch between the two forms.

Opening a Multiply Position

Opening a Multiply position happens on the Position Details page, similar to opening a Borrow position, but using the "Multiply" tab.

  1. Select Action: Ensure the "Multiply" tab is selected on the position details interface
  2. Supply Margin Collateral: Enter the amount of the collateral asset you wish to start the position with
  3. Set Multiplier: Use the slider to choose your desired level of leverage (multiplier) for the position
  4. Review Multiply Details: Carefully review the transaction simulation:
    • Multiplier: The leverage level you selected
    • ROE: Estimated net yield or return. Click the ⚙️ to adjust calculations
    • Current Price: The current price of the collateral or debt asset
    • Liquidation Price: The estimated price at which your position risks liquidation
    • Your LTV (LLTV): The LTV your position will open at and the LLTV associated with the position
    • Your Health: Your initial health score
    • Swap: The estimated swap amounts
    • Price Impact: The estimated price impact for the swap
    • Leveraged Price Impact: The estimated price impact for the swap with leverage calculated for
    • Slippage Tolerance: The maximum slippage allowed for the swap before it reverts. Click the ⚙️ to adjust the tolerance
    • Routed Via: The aggregator the swap will route through
    • Estimated Gas Fee: The estimated cost of your transaction
  5. Open Position: After all the details look good, click "Open position" (or "Add to batch") and confirm in your wallet.
  6. Approve (if necessary): If this is your first time using a particular asset as collateral, you will need to approve the Euler smart contracts to interact with your collateral token. Euler uses Permit2 by default for token approvals, which allows for more gas-efficient approvals and revocations. You can disable Permit2 usage in the settings if preferred. If your wallet supports EIP-7702, it will be automatically detected and approvals will be batched with the multiply transaction, eliminating the need for a separate approval transaction or message signature.
note

The ROE in the transaction summary takes into account the impact your position has on the vaults, reflecting where the new interest rates will be at. This does not consider impact on rewards.

tip

You can either supply directly by clicking "Open position" or use "Add to batch" if you want to build a more complex transaction (for example, batching multiple actions together before submitting). Batching can help save on gas and streamline your workflow when performing several actions at once.

Managing Your Multiply Position

Multiply positions appear alongside Borrow positions under the "Positions" tab in your "Portfolio".

Monitoring​

  • Regularly check the Health Score and Liquidation Price
  • Leveraged positions require closer monitoring due to increased risk
  • Monitor the APYs of both your collateral and debt assets, as changes can significantly impact your position's profitability

Available Actions​

  • Multiply: Increase your position's multiplier by borrowing more debt against your collateral
  • Repay: Reduce the multiplier by partially unwinding the loop or fully unwind the loop and repay all debt
  • Supply Collateral: Supply more collateral directly to the position account
  • Withdraw Collateral: Withdraw excess collateral if the position is significantly overcollateralized

Management actions are complex transactions involving multiple steps. Always understand the implications before confirming.