Leverage

MORE Leverage turns any compatible money-market position, including basic ERC-20, LP token, or even another MORE Vault share, into a self-repaying, leveraged receipt that a vault can mint, grow, or unwind on demand.

Where lending facets stop at “supply & borrow,” MORE Leverage adds a programmable layer that loops the collateral token, harvests rewards, and keeps the vault’s asset-to-liability (A/L) ratio inside pre-set guard rails.

How It Fits Into the Vault Flow

1. Invest: The vault swaps a whitelisted asset (or native coin) for a MORE Leverage LOV token, an ERC-20 that wraps the underlying leverage play.

2. Leverage Loop: MORE Leverage deposits the asset into an external lending pool, borrows against it, flips the borrow back into collateral, and repeats until the target A/L ratio is hit.

3. Accounting Hook: accountingMORELeverageFacet tallies the LOV token’s market value so share price tracks the leveraged position in real time.

4. Exit: The vault can redeem the LOV token back to a whitelisted asset or native coin, collapsing the loop and settling debt.

At all times, collateral stays over-collateralised. If the A/L ratio drifts, the manager triggers a rebalance.

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Rebalancing Without Unwinding the Vault

MORE Leverage ships two mirrored, flash-loan-assisted flows:

Goal	Action	What Happens Under the Hood
Reduce leverage	Rebalance Up	Flash-loan the debt token, repay part of the loan, withdraw excess collateral, repay the flash loan, A/L drops.
Increase leverage	Rebalance Down	Flash-loan the reserve token, add it as collateral, borrow more debt token, repay flash loan, A/L rises.

Both paths respect min/max A/L thresholds passed by the strategist. Force variants exist for emergencies but still run role checks and timelocks.

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Safety Rails & Transparency

• Unsupported guards: Calls touching an asset or LOV token outside the vault’s whitelist revert with UnsupportedAsset or UnsupportedLovToken.

• Slippage caps: A global constant (MAX_SLIPPAGE_BPS_FOR_ACCOUNTING) rejects quotes that deviate too far from oracle price, preventing hidden loss during loops.

• One-shot init: Inherits the same BaseFacetInitializer used by other facets, so leverage parameters can only be configured once per upgrade.

• Event trail: Invested, Exited, and TokenPricesSet events expose every leverage cycle for indexers and risk dashboards.

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When a Strategy Activates MORE Leverage

• Capital efficiency: Looping can turn a modest lending yield into double-digits while staying over-collateralised.

• Asset flexibility: Works with plain tokens, LP tokens, and even other MORE Vault shares, letting complex meta-strategies compound without leaving the protocol.

• Hands-off maintenance: Rebalance helpers keep the loop within risk bounds using flash liquidity, sparing depositors from dilution events.

With MORE Leverage in the toolbox, strategists can layer leverage on top of basic lending, AMM fees, or yield farming, all while the vault maintains its familiar role checks, timelocks, and on-chain accounting guarantees.