UI Guide / Glossary
UI and leverage terms explained,
Last updated
UI and leverage terms explained,
Last updated
Loop Factor
How much the position size is leveraged with borrowed capital.
Estimated Total APR
The looped Annual Percentage Rate (APR) is a dynamic figure that adjusts with fluctuations in the Base APR or interest rates. It encompasses the leveraged Base APR, the interest paid, and, if applicable, the Boost APR. This calculation does not take into account the effects of compound interest.
Boost Position (Toggle)
Activating the toggle locks 6% of the Total Position Size in the dynamic Liquidity Pool (dLP) for one month. This action activates the boost, enabling the receipt of interest rebates through LOOP emissions (Boost APR) and additional dLP APR. For those wishing to lock more than 6% or extend the duration beyond one month, adjustments can be made on the Homepage or the dLP page.
Total Position Size
The total value that is invested in the yielding asset comprises both the principal and the borrowed capital. Price impact is not considered with this value.
Total Debt
All the capital of the position that is being borrowed at an interest. This balance needs to be repaid when closing the position.
Net Position Value
This value is calculated by subtracting the Total Debt from the Total Position Size. It represents the amount that can potentially be withdrawn from the position and is expected to increase over time.
Boost Value
This represents the portion of the debt that is allocated to locking in the dynamic Liquidity Pool (dLP). If a user wishes to increase the value (invest more than 6% of their position), extend the investment period beyond one month, or invest without using borrowed capital, they can activate the Boost from either the Homepage or the dLP page. This value will no longer be visible once the position is opened, as activating a Boost applies to all positions held by a user. The current dLP value and dLP APR can be monitored on the dLP page.
Total Position Yield
This metric reflects the annualized yield generated by the entire position, calculated as the Base Yield multiplied by the Loop Factor. It does not take into account compound interest and excludes any contributions from the Boost.
Total Interest
This represents the annualized interest paid on the borrowed capital or debt associated with the position.
Boost APR
This term refers to the annualized interest rebates distributed in LOOP tokens for positions eligible for the Boost. The Boost APR may vary depending on LOOP's price fluctuations, the emissions schedule, and the Total Value Locked (TVL) of all qualifying positions. It's important to note that this APR does not include the yield generated by the dynamic Liquidity Pool (dLP); for details on the dLP's performance, users should consult the dLP page directly. An active position can fall out of the needed threshold of 5%.
Looped APR
This figure represents the total APR generated by the position, incorporating the leveraged Base APR, the interest paid on borrowed capital, and, if applicable, the Boost APR. It does not account for the effects of compound interest.
Current Market Price
This is the price of the asset associated with the underlying strategy, expressed in ETH. Should the price of the asset decrease, the Loan-to-Value (LTV) ratio will increase, potentially leading to the liquidation of the position.
Loan To Value
This ratio measures the relationship between the Total Debt and the Total Position Size. A lower LTV at the inception of a new position reduces the risk of breaching the Liquidation Threshold in the event of a depegging.
Health Factor
The Health Factor is a numeric representation of the Positions health and risk. Health factor below or close to 1, might trigger a liquidation. The higher the number is, the safer the Position.
Liquidation LTV
This is the specific threshold that the Loan to Value (LTV) ratio must reach in order to trigger a liquidation event for the position.
The rewards from the yielding collateral are compounded and result in an increasing Net Position Value. The rewards from the Boost can be claimed on the dLP page.
Per Day
This figure is derived from the "Looped APR," broken down into a daily calculation.
Per Month
The "Per Day" value with a daily compound.
Per Year
The APY.
