Yak Guides take you through how to leverage YAK as collateral and the Moremoney partnership

Moremoney x Yield Yak

Lending/Borrowing: a quick overview

When you deposit in platforms like Moremoney, your assets act as a guarantee for allowing you to borrow against it (like in a pawnshop when you leave a watch for example to borrow money).

cRATIO = value of deposited asset / borrowed amount
Liquidation threshold = minimum cRATIO * borrowed amount / deposited tokens
Key Stats for an Open Position (Moremoney)
  1. Your liquidation price
  2. Your current Collateral Ratio (cRATIO); the higher this number is versus your Minimum cRATIO, the lower the risk of liquidation.

What happens if I get liquidated?

If your collateral decreases below your minimum collateral ratio, you will be liquidated, which means that part of your collateral is converted on your behalf into MONEY to pay back your loan, plus a fee of approximately 10% is taken.

Strategies for Moremoney

Moremoney Collateral Assets

Strategy 1: Deposit YAK → Borrow MONEY → Buy YAK with MONEY

This will put you at a leveraged position long on YAK: If the price of YAK increases you sell borrowed YAK to repay your debt and keep the gains from price appreciation;

Strategy 2: Deposit YAK → Borrow MONEY → Farm with MONEY

  1. Deposit them in the MONEY Curve LP and then deposit those Curve LP tokens in Moremoney to farm $MORE;
  2. Or swap MONEY for another stablecoin and deposit them on Yield Yak in any stablecoin strategy.

The Magic of Moremoney x Yield Yak: Collateral that Strengthens Itself

The magic of Moremoney is that your deposits are held in YY strategies so your deposited collateral grows. This increases your cRATIO and lowers your liquidation risk and/or gives you more power to borrow MONEY.

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