MOR Liquidity on Fantom: Leverage your Collateral with Zero Fees!
At Growth DeFi, our core principle is to provide users with the most efficient earning power through our products (as well as efficient revenue flows for our token holders). In line with this, MOR now allows Fantom users to deposit both LPs and single assets in vaults as collateral, and to use this to borrow our overcollateralized stablecoin MOR at a 0% interest rate (with the exception of our sLINSPIRIT vault, which charges a small 5% borrow rate).
You can now earn yield while you borrow, and leverage yield farming positions for your collaterals. There are also no vault opening fees and no vault closing/debt repayment fees!
We are delighted to finally present this exciting and long-anticipated benefit to the Fantom ecosystem. In this article we outline how this is done, and the amazing leverage opportunity this presents to enhance your overall returns.
How to Use MOR
Selected collaterals on Fantom can now be staked on MOR, allowing you to borrow MOR at a 0% interest rate, and more will be added soon. Currently MOR will launch with xBOO, FTM-BOO, cLQDR, and sLINSPIRIT leveraging vaults. This provides an incredible opportunity to apply leverage to your collateralized position if you wish, with added exposure to the upside potential returns over time.
MOR is more capital efficient than other protocols on Fantom, including Abracadabra, Alpaca, Tarot, Creditum, and MAI. This means that our users can watch their collateral grow more quickly without worrying about any fees.
Follow this guide to stake your collateral with the option to borrow MOR and create a leveraged position.
Opening A New Vault
First make sure you have obtained your chosen asset from the following:
For LP tokens they are obtained at SpiritSwap by providing 50/50 of each token.
Click ‘Open New Vault’. From here you can select your chosen LP/single stake token to deposit as collateral, as well as use the simulator to determine how much of the token you require (and how much MOR you can mint) to meet a particular collateralization ratio.
Click ‘Setup Proxy’. This is necessary to do when you have never created vaults from that wallet address (you only need to do this once per wallet). This will enable the protocol to open MOR vaults from your address.
Click ‘Enable Collateral’. (only needs to be done once for each ilk)
After that, you’ll be able to open the vault. Select how much collateral to deposit and how much MOR to mint alongside your collateral. Please note that the minimum amount of MOR you can borrow must be 100 (or 0).
Click ‘Open Vault’.
Managing Your Positions
Once you have opened your vault and staked your collateral, you can manage your positions in the Dashboard. This includes functions like:
- Depositing more collateral to decrease your liquidation risk
- Minting extra MOR
- Repaying your MOR debt to unlock collateral or withdraw your loan altogether
Please note that if your vault LTV (loan-to-value as measured by debt / collateral USD value) ratio ever goes above the liquidation ratio, your vault will be flagged for liquidation. Every few hours, the bot checks the vault balances and begins the liquidation process for vaults below the liquidation ratio. So if you realize you are getting close to your liquidation ratio, it is always best to either (1) repay some of your debt or (2) add more collateral in order to keep your LTV ratio healthy. And keep in mind that liquidations have a 15% penalty fee applied for liquidating large positions, it will also cost you slippage.
For more info on our stablecoin, MOR, and why it is one of the safest stablecoins you could have in your portfolio, and why it is compared to the likes of DAI and USDC, see this article here. Happy (and safe!) MOR leveraging!