Strategy Exposure

Users can use Stella Strategy to execute a liquidity providing strategy with exposure within a few clicks. By using an exposure strategy, user can gain more from asset price volatility on top of trading fees.

Long Strategy

If leveragoors are bullish on Asset X (i.e. believe that the price of Asset X will increase against Asset Y) in the future, they can execute Long Exposure Strategy on X. Their position value will increase when X price rise, allowing them to gain in addition to trading fees.

To give an example on ETH/USDC.e strategy, a leveragoor who believes that ETH price will rise (relatively to USDC) will borrow USDC when opening a position to maximize their LONG exposure on ETH. As ETH price gets higher and the LP is rebalanced, original debt amount remains the same. This leads to extra yield when repaying debt at position closure.

Short Strategy

If leveragoors are bearish on Asset X (i.e. believe that the price of Asset X will decrease against Asset Y) in the future, they can execute Short Exposure Strategy on X. Their position value will increase when X price drops, allowing them to gain in addition to trading fees.

To give an example, on ETH/USDC.e strategy, a leveragoor who believes that ETH price will drop (relatively to USDC) will borrow ETH when opening a position to maximize their SHORT exposure on ETH. As ETH price gets lower and the LP is rebalanced, original debt amount remains the same. This leads to repaying debt at discount at position closure.

Neutral Strategy

If leveragoor believes that prices of all assets in a strategy will remain the same relatively to one another, they can use the Neutral Strategy to minimize net exposure by simultaneously having the same level of LONG and SHORT exposure on both assets.