Strategy (Long/Short)

Mighty Finance provides a range of leveraged farming strategies tailored to different market conditions. Whether you are bullish, bearish, or neutral, our strategies allow you to optimize yield, hedge risk, and enhance capital efficiency.

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Long Strategy

Used when you expect the price of a token to increase.

How it Works:

• Borrow stable token to pair with token A and provide liquidity in an A/Stable LP.

• As the price of A rises, the LP position increases in value, generating additional yield.

• At position closure, the borrowed amount remains the same, allowing for potential profit after repaying debt.

Example: A user believes S will rise relative to USDC.e. The user borrows USDC.e, open a leveraged S/USDC.e LP, and earn swap fee and LP reward while benefiting from S price appreciation.

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Short Strategy

Used when you expect the price of a token to decrease.

How it Works:

• Borrow token A instead of stable token to create a short exposure.

• If A drops in price, the borrowed debt remains the same, and the position gains value.

• At position closure, the debt is repaid at a discount, leading to profit.

Example: A user expects S to drop against USDC.e. The user borrows S, enter a leveraged S/USDC.e LP, and as S price declines, they repay the borrowed S at a lower price, generating returns.

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Choosing the Right Strategy

• Bullish? → Use the Long Strategy to maximize gains when S price rises.

• Bearish? → Use the Short Strategy to profit when S price drops.

Mighty Finance enables users to strategically optimize yield farming, manage risk, and maximize capital efficiency. Choose the right strategy based on your market outlook!