Skip to main content

​
1. Browse available markets

Head over to v2.spiralstake.xyz (Internal Beta) and explore the available markets. Each one shows the collateral token, loan token, yield spread, and other relevant details. Markets fall into two categories. Correlated pairs are things like sUSDe/USDC or wstETH/WETH where the collateral and loan token move together in price - these carry lower liquidation risk. Non-correlated pairs are things like wstETH/USDC where prices can diverge significantly, which means more liquidation risk but also more potential upside. The non-correlated frontend is still under development.

​
2. Pick your leverage

Use the interface to set your desired leverage. It’ll calculate the flash loan amount needed and show your effective LTV, max LTV, and how far you are from liquidation. For correlated pairs, 3-6x is a reasonable range. You can push higher on very stable pairs but the margin for error gets thin. For non-correlated pairs, keep it conservative since price swings between the collateral and loan token can be large.

​
3. Open your position

There are two ways to get in. If you already have the yield-bearing token (say sUSDe or wstETH), deposit it directly and the protocol handles the flash leverage in one transaction. If you’re starting with a base token like USDC, using the FlashLeverageRouter the app swaps it into the collateral token and leverages in a single combined transaction.

​
4. Manage your position

This is the big upgrade from v1. You don’t have to sit on your hands anymore.
  • increaseLeverage() borrows more against your existing collateral to amplify your exposure
  • supplyCollateral() adds more collateral, bringing your LTV down and giving you a bigger safety buffer
  • repay() pays off some of your debt, reducing your leverage
  • borrow() lets you pull out loan tokens against your collateral, as long as you stay within safe LTV limits
  • withdrawCollateral() lets you pull out some of your collateral, again as long as you stay within safe LTV limits, helps in manual deleveraging of positions when atomic-deleverage is not possible for some assets becuase of unavailable/inefficient swap routes.

​
5. Close your position

Call deleverage() when you want to exit. The protocol flash-loans enough to cover your debt, repays Morpho, pulls your collateral, swaps it back to the loan token, repays the flash loan, takes the fee if applicable, and sends you the rest. All in one transaction. If there’s no DEX route available for your collateral (maybe liquidity dried up or the token doesn’t have good swap routes), Then you can always withdraw some portion of your collateral and unstake it for loan token, payback a portion of the loan to withdraw more collateral and repeat this process until you have completely closed your position.