APR Calculated on Francium
Opening a leveraged position (especially for a large position) could result in changes in:
- Asset Price in Liquidity Pool: That is because asset value in an AMM pool is always 50:50, so when users open a leverage position on Francium, they may swap/trade to equalize the value of the asset deposited.
- Lending interest: Imagine that opening a large leveraged position could result in a tremendous increase in borrowing interest.
- Underlying farming APR: Incentives for a liquidity pool are always constant for a certain period. Thus more liquidity providing may result in an underlying farming APR dilution.
All the above-mentioned terms are already calculated in the Total APR/APY and are visible on the Francium App.