What Is Leveraged Farming
Leveraged farming lets you multiply an Aquarius liquidity position without adding more capital. You supply LP as equity, the vault borrows against it on Blend and turns the borrowed asset into more LP — all in one signed transaction.
Status: testnet preview. The leverage vault runs on Stellar testnet at app.whalehub.io/leverage. It is not live on mainnet, has not been audited, and holds no real funds. Mainnet requires the production oracle, an external audit and a funded Blend pool.
What you get
What you deposit
LP (or a token pair)
The same LP, as equity
Exposure
1× your deposit
Up to ~1.67× your deposit
Debt
None
A borrow on Blend, against your LP
Yield
Pool fees + AQUA rewards
The same yield on a larger position, minus borrow cost
Can be liquidated
No
Yes
Exit
Withdraw anytime
Unwind anytime, partially or fully
It is a spread trade, not a yield boost
Leverage does not create yield. It buys you more of the pool's yield with borrowed money, and you pay the borrow rate on the borrowed part only:
net APY on equity = (LP APY × L) − (borrow APR × (L − 1))
where L = leverage, e.g. 1.55Leverage pays only while the borrow rate sits below the LP yield. If the borrow rate rises above it, levering up earns less than simply providing liquidity. That is why the interface shows the live borrow rate, your net APY, and the break-even borrow rate for your chosen leverage before you sign anything.
Worked example on measured rates (Aquarius XLM/USDC concentrated at 10.77% unboosted, Blend XLM borrow at 0.10%, 16 Aug 2026):
1.00× (plain LP)
$1,000
—
10.77%
1.55×
$1,550
$550 of XLM
~14.8%
These are arithmetic outputs of the rates above, not projections. Blend rates move with utilisation and can change without notice.
Why the borrowed asset is XLM
Blend prices each asset by how much of it is being borrowed. On Stellar, borrow demand is for dollars, not for XLM — so USDC borrows at roughly 11% while XLM sits near its rate floor at 0.10%. Borrowing USDC at 11% against a 10.77% LP yield would lose money at any leverage. Borrowing XLM is what makes the product work, and it is a Stellar-specific advantage.
What you are taking on
Liquidation. If the value of your LP collateral falls far enough against your debt, Blend liquidates part of the position. The interface caps leverage at 92% of the liquidation boundary to leave headroom.
Direction. Borrowing XLM against an LP that is half XLM makes the position partly short XLM. A large XLM rally grows the debt faster than the collateral — that is the move that liquidates, and it also means a rally returns less than plain liquidity providing would have.
The spread inverting. If the borrow rate climbs above the LP yield, unwind or deleverage.
Your position, your risk. Each depositor holds an isolated position with its own health factor. If yours is liquidated, you lose part of your collateral; no other depositor is affected, and nobody else's position can affect yours. WhaleHub's contract manages the position but can only send withdrawals to you.
Fees
One fee is planned: 10% of net profit after borrow costs, measured against your position's high-water mark. No management fee, no deposit fee, no withdrawal fee. A fee on principal or on gross yield would consume the few percentage points that leverage adds in the first place.
What is charged
10% of profit, after the interest paid on your debt
When nothing is charged
In a drawdown, and while a position recovers to its previous peak
High-water mark
Per position — the same gain is never charged twice
Deposit / withdrawal / management fee
None
Of the fee collected, 30% is routed to the BLUB-AQUA pool as two-sided liquidity, which stays protocol-owned. That is pool depth rather than a buyback: the leverage product generates fees, and those fees deepen the pool behind AQUA staking and the BLUB vault.
The fee is not live yet — the testnet vault charges nothing, and the fee module ships with mainnet.
Next
How Leverage Works — the one-transaction mechanism, step by step.
Oracle and Risk Controls — how the collateral is priced and what stops it being gamed.
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