When we first launched our cross-margin farming platform, X-Farm, user feedback was that it’s difficult for less experienced traders and DeFi farmers to understand their price exposure with regards to their leveraged farming positions — This changes today with the release of X-Farm 2.0, and the team couldn’t be more excited for it!
X-Farm 2.0 leverages our In-App Swap feature to allow users to simply select their intended price exposure to farm a particular trading pair.
We group our LP trading pairs into of four types:
- Volatile-stable (example: SOL-USDT)
- Volatile-pegged (example: SOL-MSOL)
- Volatile-pair (example: ETH-SOL)
- Stable-pegged (Example: USDT-USDC)
For each type, we provide different farming options. As an example, for volatile-pair type, the following price exposures are provided:
- Long both sides
- Short left asset over right
- Short right asset over left
- Delta neutral
The four options above provide exposure to every potential market movement.
Why is this a significant improvement to the leverage farming market vertical?
Simply put, X-Farm 2.0 provides abilities to farmers which weren’t easily possible before.
Unlike Apricot’s, traditional farming platforms (like Francium or Alpaca) face the following limitations we have solved:
- The ability to long both assets of an LP pair
- The ability to borrow stablecoin to long both assets of volatile and volatile paired types
Let’s break this down for better understanding. During a bull market, it’s likely the case both left and right assets will appreciate — The best strategy is take long position on both sides and farm rather than to borrow one side (short) of the LP and long the other.
We’ll now walk you through how the new product release functions when taking a delta-neutral position.
Step 1) Deposit $100 SOL
As you can see, we’ve deposited $100 SOL to serve as collateral to open a leveraged farming position.
Step 2) Select the LP trading pair to farm
We now select the X-Farm tab on the left menu and then choose the LP trading pair we wish to farm. In our example, we select ORCA-USDC LP on Orca and click “Farm”.
Step 3) Configure your position
On the ORCA-USDC Farm Menu, we can select the following parameters:
- Farming Position: Long, Short, or Neutral.
- Portfolio Leverage size
For our position, we’re feeling ambitious today, but still wish to remain agnostic to market price swings — Therefore we select a “Neutral” Position at a max portfolio leverage of 2.5x.
As you can see in the screen capture above, once “Start Farming” is clicked, X-Farm 2.0 automatically configures the transaction to borrow both ORCA and USDC at 2.5x portfolio leverage — crafting a delta-neutral farming position. What is a delta-neutral farming position? Learn more here.
Once the transaction has been submitted and confirmed onchain, our balance updates to reflect the changes.
As seen in the capture above, our deposits now match our liabilities.
This completes our walkthrough of X-Farm 2.0 — If you have any questions to how this product functions, please reach out to us on our Discord, we’re more than happy to assist you.