📈Degen Mode
Introduction
Degen Mode is a powerful feature that simplifies the leveraged arbitrage in the cryptocurrency market. With Degen Mode, you can easily explore market opportunities, enabling you to swiftly identify and act upon them with optimal strategies. This gives users a competitive edge.
Degen Mode allows users to provide liquidity and engage in swaps within integrated dapps, facilitating the accumulation of higher APR. This feature lets users act quickly on opportunities and execute strategies efficiently, making it easier for them to stay ahead in the market.
Access the degen mode: https://app.hashstack.finance/v1/degen/
Selecting the Strategy
This feature is accessible to users with a supply of $1,000 or more in a single asset. If your supply falls below this threshold, you'll receive a friendly reminder to ensure your address has sufficient supply. The strategy involves borrowing and spending a fixed amount of $5000 worth of assets. Users with multiple collaterals higher than $1000 will be able to switch between the collaterals and extend their supply. Since there is a fixed amount a user can borrow and spend, if the user supplies more than $1000 then it will not increase the borrowed amount, instead, it helps user to reduce their leverage position.
Let’s understand this through an example. We will use ETH as a base, $1000 worth of single assets, and $5000 worth of assets as a fixed borrow.
Example 1:
Alice supplied $1000 worth of ETH. Alice selects the ETH strategy from the degen screen and executes it. Alice went through the standard procedure where she supplied $1000 worth of ETH and spent $5000 and has leverage of 5x.
Example 2:
Bob supplied $2500 worth of ETH. Bob selects the ETH strategy and executes it. Bob reduced his leverage position to 2.5x.
Example 3: Charlie supplied 2 different assets with each $1000 worth of ETH and BTC. Charlie can now select the best strategy based on the holdings of ETH, and BTC.
Various strategies for Liquidity Provisions and Swaps will be displayed based on the optimal strategy, max APR, and market depth from which users can make the informed decision and execute them.
The advantages of Degen Mode lie in its ability to assist users in minimizing risks to the greatest extent possible while enabling swift action for potentially higher returns. Nevertheless, it's important to note that this approach doesn't guarantee a risk-free return.
Steps to Execute Strategy
Once you meet the criteria, visit the “Degen” tab and follow the steps below to execute the strategy:
Choose the strategy you want to execute.
Select the collateral from the dropdown if you have multiple supplies, and enter the amount.
Click the “Execute” button.
The modal with your strategy details and progress status will appear. Once complete, you can close it.
You can track your strategy from the “Your Borrow” page.
Understanding Strategy Details
Strategy Name: Describes the specific dapp name, collateral, debt, type, and secondary market involved.
Type: Indicates the nature of the strategy, whether it's a swap, liquidity provisioning, and STRK farming.
Collateral: Recommends the suggested collateral for maximum APR.
Minimum Collateral Amount: Amount you have to provide to execute the strategy. Currently, the minimum collateral is set to $1000 worth of assets.
Recommended Margin: Specifies the recommended maximum loan-to-value for the strategy.
Borrowed Amount: Displays the amount and assets you are borrowing to execute the strategy. Currently, it is fixed to $5000 worth of assets.
Max APR: Displays the estimated maximum effective annual percentage rate you can earn through the strategy. It is calculated based on the initial leverage and may differ based on the collateral, amount.
Key Things to Remember
To access this feature the minimum supply should be $1000 worth of single assets and should not have any active borrowing or spending. It should be freed-up capital ready for deployment.
The amount a user can borrow and spend is $5000 worth of a single asset and is fixed. User can execute multiple strategies one at a time.
Once user clicks on the “Execute” button the app will auto-borrow and executes the strategy that the user has selected.
If users supply more than $1000 worth of a single asset it will reduce the leverage position.
Note: The feature is in beta mode so proceed accordingly.
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