Marginly Brings You 👉 Diversified Leveraged Yield Farming

Meet Marginly—the platform that lets you earn on yield-bearing DeFi assets with leverage. With smart protocol design, Marginly can put up 3-figure annual percentage yields. Yes!

Marginly is starting by supporting leveraged farming on Pendle, the platform that lets you tokenize and trade yields of supported yield-bearing tokens. And Marginly is expanding to other yield farming and staking protocols, because the tech is diverse like that.

What is leveraged yield farming?

Leveraged yield farming is the practice of borrowing funds to boost your returns on yield farming. Using borrowed funds enables you to control a larger amount of the underlying asset earning yield than you could with just your own capital.

Leveraged yield farming increases both your profit potential and exposure to the underlying asset. If the price of the underlying asset decreases, your position could get liquidated. You’ve got valid reasons to get excited about leveraged yield farming—but first, you need the lowdown on how it works and to understand both the benefits and risks.

How Marginly enables leveraged yield farming

How exactly leveraged yield farming on Marginly works 👇

Marginly acts as a combination of single-sided lending pools connected with multiple DEXs via its trade router. The user journey starts with depositing collateral, which is used as margin, into Marginly smart contracts and specifying your desired leverage.

Then the Marginly protocol pulls out a quote asset in the amount of leverage specified, and that asset gets swapped for the target asset through connected DEXs. The proceeds of this trade, combined with the initial user margin, represent the user’s leveraged position. The whole process is depicted here—

Now—assume that the target asset is interest bearing. The user’s leveraged position starts earning yield—both on the initial margin and on the leveraged position. If the yield exceeds the ETH or stablecoin borrow rate on Marginly, users are positioned to earn with leverage.

Marginly funnels the majority of yield accrued on the leveraged position to liquidity providers who deposited ETH or stablecoins in the Marginly pools. The remaining yield goes to farmers, who effectively earn standard yield on their margin plus leverage times this remaining APY—a substantial APY boost in most cases.

Why farm leveraged yield with Marginly?

Plenty of leverage, safety-first protocol design, and a friendly user experience are what Marginly is dishing up.

High APY potential

Farmers can earn potentially eye-popping APYs by getting abundant leverage from Marginly liquidity pools to farm yield-bearing tokens.

Diversified use cases

Modular architecture and isolated liquidity pools, combined with oracle compatibility, are enabling Marginly to innovate on many new leveraged yield farming use cases.

Isolated liquidity pools

Marginly liquidity pools are entirely isolated to minimize LPs’ exposure to risk.

Double-audited smart contracts

The cybersecurity experts at Quantstamp have audited all the Marginly smart contracts—twice.I

100% decentralized

Marginly’s platform is non-custodial and doesn’t rely on off-chain information, making it 100% decentralized.

Airdrop eligibility

Start farming on Marginly before the platform’s native token airdrop to earn Sparks (read: points) that make you eligible for the airdrop.

1-click farming

Begin farming leveraged yield in one click! Exceptional UX dramatically simplifies the entire leveraged farming experience for Marginly users.

Battle-tested tech for leveraged farming

You might be surprised—but Marginly uses exactly the same tech rails for leveraged yield farming as it’s been using for margin trading on Arbitrum since December 2023. Marginly smart contracts have processed over $6 million in trading volume over the past six months with around $1 million in TVL.

Marginly’s technology was initially designed for leveraged trading of various long-tail assets—that’s why it perfectly serves niche leveraged yield farming use cases that remain inaccessible to Marginly competitors. Getting leverage on Pendle Principal Tokens (PTs) is a prime example.

Marginly is bootstrapping liquidity

Marginly enables lenders to deposit their crypto—specifically ETH, USDC, and USDT—to earn up to 45% APYs. The platform is bootstrapping liquidity right now, from May 15 through June 5 for Pendle pools. Marginly liquidity pools are what enable leveraged yield farmers to gain their desired leverage and respective boosts in yield farming returns.