Stella offers a range of leveraged strategies sourced from major DeFi protocols, providing users with expanded opportunities to generate yields.
By utilizing liquidity from Stella Lend, Stella Strategy enables users (or leveragoors) to increase their positions by borrowing funds at 0% cost. This results in larger position sizes, leading to higher yields from trading fees, token rewards, or price exposure.
Unlike traditional accruing borrow interest from utilization-based IRM, Stella adopts a Pay-As-You-Earn (PAYE) model. When closing a position and realizing a profit, a portion of the net profit is deducted as a fee for the borrowed liquidity.