Looping Leverage

Through Hooks Tren Finance is able offer looping leverage for assets through its recursive lending engine. Users can gain high leverage on assets in one-click. With this functionality, users are able to employ a number of different strategies to optimize their yield. Read more about these use cases and strategies. In the example above, a user wants to gain a 5x levered position on PT-USDe. Tren Finance calculates the XY needed for the user’s desired position, and XY is FlashBorrowed based on the amount required to attain the user’s desired PT-USDe postion. After the FlashBorrowed XY is used to acquire PT-USDe, the PT-USDe is then used to borrow XY in order to repay the FlashBorrow loan.

Benefits

Efficiency: Executing the entire leveraging process within a single transaction reduces gas fees and operational complexity.

Maximized Yield: By increasing exposure to yield-generating assets, users can potentially enhance their returns. In the example used above, the user would gain roughly 5x the typical yield on PT-USDe.

Automation: The hook automates repetitive steps, streamlining the user experience and minimizing manual intervention.