# Extra Finance farming: Elevating leverage

By [Lynn Brooke](https://paragraph.com/@lynnbrooke) · 2024-01-29

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As market conditions fluctuate, strategically increasing leverage can enhance your position’s profitability. This brief guide provide essential steps for **upscaling your leverage** in [Extra Finance protocol farming](https://app.extrafi.io/farm) when the asset prices increase.

**What you will find in this article:**

![](https://storage.googleapis.com/papyrus_images/bda675f448e773118d30babfa68328486eda3b9bf1b30c07b2e330f9b51166b2.jpg)

**Increasing your leverage**

**1) Initiate from the position panel**: navigate to the “_Add collateral_” option in the main panel of your position, clicking the “_Add_” button.

![](https://storage.googleapis.com/papyrus_images/edf5fb453e6d9c592def11724596e2e62d73963c0edebbc6002477d8996934cb.png)

**2) Position update option**s: upon “Update \[_your poo_l\] Position”, you’ll be presented with two choices:

*   **Add collateral:** use available funds in your wallet to boost the collateral (thus decreasing leverage), which will be explained in the next article.
    
*   **Borrow more**: opt for borrowing additional funds from the protocol by selecting “_Borrow more_”. Here’s where you select your desired leverage level.
    

![](https://storage.googleapis.com/papyrus_images/6acec0d3ae222013930eb6009080febdaec231542eb6ab565df17cafde8fd2ad.png)

**Note**: Extra Finance offers the option of up to 4x leverage in some pools. This      comes with one specific condition known as “**veEXTRA Boost**”. This requires the      staking of 2,000 veEXTRA tokens.

![](https://storage.googleapis.com/papyrus_images/1b5d0f77a84df7cde9065709350c77b419bb11285a672f3cfcfbadfb29a3c290.png)

**3) Leverage selection:** with your chosen leverage, the characteristics will vary and can be reviewed on the right-hand side of the screen, detailing:

![](https://storage.googleapis.com/papyrus_images/de95a9ba7c23da4475936518883be5d725893b8b755866ad7b94a9a72914d03b.png)

*   The APR of the entire position.
    
*   The APY of the entire position.
    
*   The daily APR.
    
*   Price impact.
    
*   Swap cost.
    
*   Estimated liquidation price.
    
*   Updated net exposure: displaying the new total value of the position post-leverage adjustment, accounting for both the user’s contribution and additional borrowed amount.
    
*   Updated leverage.
    
*   Assets borrowed.
    
*   Updated total debt.
    
*   Updated total position.
    

**4) Profit and Loss simulation:** below, a graph illustrated a PnL simulation, offering a visual representation of how gains and losses may fluctuate under varying market conditions.

![](https://storage.googleapis.com/papyrus_images/fee6c36e07da87e1ba84ebaddfca9794f9fab84da07753c5732509608ec7a993.png)

**5) Confirmation:** by pressing the “Confirm” button, you agree to the new loan conditions and thus update your position.

![](https://storage.googleapis.com/papyrus_images/027e7af98f4b66b2b9c46ff5818e34fcc47b9a3ce1cc87656a7a2b634ec959dd.png)

**6) Protocol permissions:** Extra Finance will request permission to manage different tokens for the position update:

*   Asset #1 allowance.
    
*   Asset #2 allowance.
    
*   Authorize position update.
    

![](https://storage.googleapis.com/papyrus_images/17711803233abb8c913fbd22d48ffb89776670a229f880122487daf3dd813aa4.png)

By following these steps, you can efficiently adjust the leverage in your farming activities within the **Extra Finance protocol**, aiming to maximize your returns while managing risks associated with market changes.

_Lynn Brooke_

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_This article serves educational purposes and is not financial advice. We encourage you to do your own research and be responsible for your actions in the financial space._

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*Originally published on [Lynn Brooke](https://paragraph.com/@lynnbrooke/extra-finance-farming-elevating-leverage)*