Leveraged Vaults
Smart vaults that use automated leverage to amplify yield.
Leveraged Vaults are a category of automated yield strategies on Superlend that use controlled leverage to amplify potential returns on selected assets — currently available for XTZ and BTC.
Unlike traditional vaults, Leveraged Vaults automatically manage borrowing and collateral positions to increase exposure and pursue higher yield while handling rebalancing on your behalf.
These strategies are suitable for users who understand amplified risk and reward mechanics and want a more advanced yield product than standard vaults.
How Leveraged Vaults Work
Leveraged Vaults take your deposited assets and loop them through borrowing and supplying cycles to amplify yield exposure.
For example:
You deposit WBTC or LBTC into the BTC Max Vault
The vault supplies a portion of BTC to a lending market
It borrows against the supplied position
The borrowed amount is resupplied
The cycle continues within predefined risk parameters to increase exposure
This process runs automatically according to the strategy logic. It increases potential yield but also increases exposure to market volatility and liquidation risk compared to non-leveraged vaults.
Security and Risk
Leveraged Vaults are more complex than standard vaults, and they involve inherent risks such as:
Increased market exposure
Sensitivity to asset price movements
Higher potential for drawdowns
Risk of liquidation if collateral value falls relative to borrowed exposure
Who Leveraged Vaults Are For
Leveraged Vaults are intended for users who:
Understand how leverage affects yield and risk
Want a strategy that automatically amplifies exposure
Are comfortable with variable returns and potential volatility
If you prefer a simpler, non-leveraged approach to yield, consider using Superfunds or Markets instead.
Last updated