A: A process in which users (or farmers) receive additional incentives (typically in the form of another token) for providing liquidity to a liquidity pool on a certain AMM protocol, such as Uniswap V2, Sushiswap etc.
A: A mechanism that allows farmers to lever up their yield farming position by to borrow external liquidity and to add to their liquidity to yield farm
A: Debt Ratio = borrowing credit/collateral credit
Leveraged positions (more than 1x) are subject to liquidation when Debt Ratio = 100%. But even when Debt Ratio = 100% (position is at liquidation risk), the position is not yet underwater.
Homora V2 has another buffer layer to allow for more price volatility before the position becomes underwater if not yet liquidated.
A: Each asset has its own credit value. A borrowing credit value determines how much credit (received from collateralizing an asset) is consumed from borrowing an asset.
A: A collateral credit value determines how much credit is gained from collateralizing an asset. Note: collateral is only taken from the liquidity supplied on step 1 when opening a farming position.