SpiritSwap announced last Thursday, December 23, through its Twitter account, the launch of ApeMode, which is why it indicated that Ape is scheduled to be available in January.
“The SpiritSwap team has had the honor and privilege to collaborate with Abracadabra in the development of our next suite of products on the market: Ape Mode. Since the product is expected to launch in January, we wanted to release this article as a preview of what we can expect”, he said through an article published on the Medium platform.
How does mono mode work?
The company explained that the leverage function is facilitated when a user deposits FTM (for example) as collateral. That FTM is then used to obtain a loan (MIM) in Abracadabra. This MIM is then used to buy more FTMs. This additional FTM that you have purchased is considered the “leverage” with which you open the “long” position.
In his view, with any loan mechanic, there is always a risk. The risk of using Ape Mode is the dreaded L-word: “liquidation.” Your settlement price will be indicated on the far right of the “Your position” tab. It is important to keep an eye on this price, as this will determine the security of your warranty. If the FTM price falls below the liquidation price, your position will be closed and the collateral will be lost in the liquidation process, so use it at your own discretion.
In addition, he commented that the settlement price is calculated by borrowed MIM x collateral FTM x 0.75 (collateral ratio).
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Tutorial
Using Ape Mode is pretty straightforward, but let’s see how it’s done.
1. Navigate to our new tab “Ape Mode”.
2. Select the asset you want to leverage just as you would when trading a token on our DEX (for this example we will use $ FTM).
3. In the Ape Mode “Pay” top entry field, you must enter the amount of FTM you would like to enter in a “long” position (this is your guarantee).
4. You can then adjust the leverage from 1.1x to 3x. This will determine the amount of additional FTM that you will use as “leverage”. For this example, we will use 2x leverage.
5. Once collateral is added and leverage is adjusted, the “Long” tab will indicate the amount of FTM you will get as your “Leveraged Position Size”. For example, if you select 10 FTMs with 2x leverage, your position will be opened with 20 FTMs.
6. Before opening this position, it is important to take note of the other guides that are offered when opening a position. At the bottom of the trade tab, there are five main indicators:
– Leverage position size: shows the leverage of your positions, in this case 2x.
– FTM settlement price: this is the most important guide to consider. IF the FTM price falls below this number, your position will be marked for liquidation and subsequently liquidated by the settlement bots. This means that you lose the 10 FTM that you put as collateral when entering the operation.
– MIM Left to Borrow: Indicates how much MIM is available in Kashi’s market pool to facilitate leverage trading. If this pool is depleted (as in abracadabra), leverage trading will not be available until funds are replenished.
– Price: represents the cost of the token at the time of entering the position.
– Slip tolerance: represents the amount of slip that you are allowing when entering the position.
7. Click on “Ape”.
8. Once the position is open, your collateral index and position information will be available to view in the “Your Position” tab of the Ape Mode.
9. Once your position has matured to a profit level that you are satisfied with, you can close the position and make a profit by clicking the “Close” button under the “Your Position” tab.
10. Voilà!
