# Table of Contents - [DefiTuna - Our Mission | DefiTuna](#defituna-our-mission-defituna) - [Introduction - Who is it for? | DefiTuna](#introduction-who-is-it-for-defituna) - [Onboarding | DefiTuna](#onboarding-defituna) - [How to open a position | DefiTuna](#how-to-open-a-position-defituna) - [Requirements | DefiTuna](#requirements-defituna) - [Setting Up a Directional Bias | DefiTuna](#setting-up-a-directional-bias-defituna) - [How to Lend | DefiTuna](#how-to-lend-defituna) - [Yield (24h) Estimation | DefiTuna](#yield-24h-estimation-defituna) - [Monitoring Opened Positions | DefiTuna](#monitoring-opened-positions-defituna) - [Supply APR | DefiTuna](#supply-apr-defituna) - [Platform Info | DefiTuna](#platform-info-defituna) - [Supported Pools | DefiTuna](#supported-pools-defituna) - [Terminology | DefiTuna](#terminology-defituna) - [Fees | DefiTuna](#fees-defituna) - [Liquidations | DefiTuna](#liquidations-defituna) - [Take Profit / Stop Loss | DefiTuna](#take-profit-stop-loss-defituna) - [Compound | DefiTuna](#compound-defituna) - [Transaction Priority Fees | DefiTuna](#transaction-priority-fees-defituna) - [Borrow APR and Lending Utilization | DefiTuna](#borrow-apr-and-lending-utilization-defituna) - [How to do a swap | DefiTuna](#how-to-do-a-swap-defituna) - [Onboarding | DefiTuna](#onboarding-defituna) - [How to set up a limit order | DefiTuna](#how-to-set-up-a-limit-order-defituna) - [Platform Info | DefiTuna](#platform-info-defituna) - [Supported Pools | DefiTuna](#supported-pools-defituna) - [Trade History | DefiTuna](#trade-history-defituna) - [Fusion AMM Audits | DefiTuna](#fusion-amm-audits-defituna) - [Audits | DefiTuna](#audits-defituna) - [Platform risks | DefiTuna](#platform-risks-defituna) - [FAQ | DefiTuna](#faq-defituna) - [Disclaimer | DefiTuna](#disclaimer-defituna) - [DefiTuna Audits | DefiTuna](#defituna-audits-defituna) - [How to open different strategies | DefiTuna](#how-to-open-different-strategies-defituna) - [Terms of Use | DefiTuna](#terms-of-use-defituna) - [Lending FAQ | DefiTuna](#lending-faq-defituna) - [Contact | DefiTuna](#contact-defituna) - [Trade FAQ | DefiTuna](#trade-faq-defituna) - [Understanding Impermanent Loss | DefiTuna](#understanding-impermanent-loss-defituna) - [Farm FAQ | DefiTuna](#farm-faq-defituna) - [Brand Kit | DefiTuna](#brand-kit-defituna) - [SDK and Smart Contracts | DefiTuna](#sdk-and-smart-contracts-defituna) - [Short Farming | DefiTuna](#short-farming-defituna) - [Long Farming | DefiTuna](#long-farming-defituna) - [Neutral Farming | DefiTuna](#neutral-farming-defituna) - [Perpetual Swap on DefiTuna | DefiTuna](#perpetual-swap-on-defituna-defituna) - [Tokenomics | DefiTuna](#tokenomics-defituna) - [Position opening | DefiTuna](#position-opening-defituna) - [Understanding Pseudo Delta Neutral | DefiTuna](#understanding-pseudo-delta-neutral-defituna) --- # DefiTuna - Our Mission | DefiTuna The team comes from a Defi centric background where earliest primitives were always pushed to their limits. We've decided to contribute to the space by putting all of our collective experience together to bring about a change to this space! Our mission is to create an environment where Liquidity Providers will feel most comfortable to farm at, hedge their positions and add leverage while at the same time Lenders can experience the best APY % in the space. If we're not bringing in the best User Experience - we've failed! Last updated 7 months ago --- # Introduction - Who is it for? | DefiTuna DefiTuna is a decentralized finance (DeFi) platform offering concentrated liquidity market making (CLMM) with leveraged positions. DefiTuna allows users to open positions with leverage. Initially, we will support some of the most liquid pairs but later we plan on expanding to a more permission-less approach. ### [](https://docs.defituna.com/defituna-introduction/introduction-who-is-it-for#who-is-it-for) Who is it for? * **Lenders** * **Liquidity Providers** ### [](https://docs.defituna.com/defituna-introduction/introduction-who-is-it-for#features) Features * **Concentrated Liquidity:** Users can provide liquidity within a specific price range, enhancing capital efficiency. We currently support Orca but are quickly expanding to cover other protocols as-well. * **Leverage :** Open positions with up to 5x leverage to amplify potential returns . In the future we will be increasing it as we grow our TVL. * **Lending:** Get rewarded for providing your tokens as leverage to LP's. * **Directional Bias and Hedging:** Liquidity providers can have a directional bias or a hedge by selecting which tokens to borrow as leverage. This allows users to optimize their positions based on market expectations. * **Auto-compounding**: Automatically reinvest your earnings to boost returns, whether you’re using leverage or not. * **PnL chart**: Visualize your profit and loss across price ranges and simulate expected returns based on time spent in range. * **Limit orders**: Set a target price to automatically close your position and swap your collateral into your preferred token. * **Repay debt**: Reduce your leverage at any time by adding external funds to repay your borrowed assets. ### [](https://docs.defituna.com/defituna-introduction/introduction-who-is-it-for#undefined) Last updated 1 month ago --- # Onboarding | DefiTuna [Requirements](https://docs.defituna.com/defituna-introduction/onboarding/requirements) [How to open a position](https://docs.defituna.com/defituna-introduction/onboarding/how-to-open-a-position) [How to Lend](https://docs.defituna.com/defituna-introduction/onboarding/how-to-lend) [Monitoring Opened Positions](https://docs.defituna.com/defituna-introduction/onboarding/monitoring-opened-positions) [Setting Up a Directional Bias](https://docs.defituna.com/defituna-introduction/onboarding/setting-up-a-directional-bias) Last updated 8 months ago --- # How to open a position | DefiTuna #### [](https://docs.defituna.com/defituna-introduction/onboarding/how-to-open-a-position#how-do-i-place-a-trade-on-hyperliquid) How do I open a position on DefiTuna? Navigate to our website: [https://defituna.com/farm](https://defituna.com/farm) . By default, you will be taken to our **"Farm"** section. Press the **"Connect Wallet"** button, a purple icon located at the top of the page, and follow the process to connect the wallet you would like to use. Once connected, navigate to the **"Pool"** section, where you will find a dropdown menu to select your desired trading pair. Choose the relevant pair. Once selected, you will have full flexibility to start setting up your position in the following order: **"Pool"** indicates the token pair currently selected. **"Collateral"** Initial deposit of funds from your wallet. You must use at least one of the two tokens as collateral. Leverage can be taken against this initial Deposit. **"Disable Swap"** If disabled, you can deposit a single asset as collateral—DeFiTuna will automatically swap the necessary amount to reach the target position ratio. If enabled, your deposit must already match the required ratio. **"Position Type"** displays your [directional bias](https://docs.defituna.com/defituna-introduction/onboarding/setting-up-a-directional-bias) , indicating whether your position is [_Long_](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming) , [_Short_](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming) , or [_Delta Neutral_](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming) . Use the PnL chart at the top of the screen to confirm that your bias aligns with your strategy. **"Leverage"** is funds Borrowed that will be taken in order to increase your LP position. **"Borrowed Ratio"** allows you to choose the combination you would like your borrow to occur at. Generally speaking the asset which you Borrow is what you end up shorting. **"Position Size"** indicates notional value of your position. Borrowed funds + Collateral = Position Size. Once you've set up your position you can see your final Position Size and its weight in the relevant tokens. If you're happy with the setup you may proceed by pressing on "Create Position". You will be met with a final confirmation page which you have to confirm in order to open a position. Last updated 1 month ago --- # Requirements | DefiTuna **What do I need to trade on DefiTuna?** * Make sure you have funded this wallet Make sure your wallet is funded with enough SOL to cover transaction fees. * Ensure you have sufficient collateral for the relevant pair. For example, if you're planning to open a SOL/USDC position, make sure your wallet is funded with either Solana (SOL), USDC, or both. We currently support Solfare, Phantom, Backpack, Jupiter, Glow, Brave, and Trust wallets. Last updated 1 month ago --- # Setting Up a Directional Bias | DefiTuna In simple terms, when you borrow an asset, you typically short it (If Borrow ratio is set as only SOL on SOL/USDC pair - you are shorting Solana). However, things aren't always as straight forward. In liquidity farming, the relationship between price and profit isn’t linear. DeFiTuna created a Direction Bias Indicator (DBI). DBI has a range that varies from 0 (which stands for maximum possible Short) to 1 (which stands for maximum possible Long). DBI takes into account leverage and borrow ration as well as collateral and calculates your Bias accordingly. You can view the impact of your directional bias directly on the PnL chart. position directional bias = (total\_position\_size - debt\_token\_A) / total\_position\_size The DBI ranges from 0 to 1: • 0 means the strongest possible Short position. • 1 means the strongest possible Long position. Note only debt of token A in the provided equation is used. Token B debt is not taken into account. Keep an eye on your range, deposit ratio, and borrow ratio, and always double-check the amount you're trading - all of these factors can affect your profit, loss, and directional bias. For optimal efficiency, we recommend aligning your directional bias with your final deposit ratio. [You can learn more here.](https://docs.defituna.com/learn-more/how-to-open-different-strategies) Last updated 1 month ago --- # How to Lend | DefiTuna **How do I lend on DeFiTuna?** 1. Navigate to [https://defituna.com/lending](https://defituna.com/lending) . 2. Connect the wallet you wish to use by following the connection process. 3. Select the token you want to lend and click “Lend Now.” 4. Enter the amount you’d like to lend, then click “Deposit" and go through the confirmation process using your wallet. **"Pool"** indicates the token type that the relevant pool supports. **"Supply"** indicates how much AUM is currently locked in the pool. **"Borrowed"** indicates how much of the supply is being actively used as Leverage. **"Utilization"** is representing the relation between **Borrowed** funds in percentage to the **Supply**. If the supply is 100 USDC and 10 USDC is currently being borrowed, utilization is 10%. **"Supply APY"** indicates the annualized interest paid to the Lending pool. **"Supply Limit"** refers to the maximum amount that can be supplied. These limits can be increased if necessary. Once you've set up your Lending position you can see it live under "My Lendings". **Note: Lending auto-compounds your earnings. You do not need to claim them.** You can always modify your Lending position by either selecting to "Withdraw" funds (either partially or fully) or "Deposit" in order to increase the amount you're willing to lend. Last updated 1 month ago --- # Yield (24h) Estimation | DefiTuna Projected yields are calculated based on data from the past 24 hours of trading within the selected price range. While other platforms might display 24-hour yield based on your collateral, DeFiTuna uses a similar methodology — with one key difference: we account for leverage in yield calculations. This distinction is important. A 24-hour yield figure is inherently static. When you increase your collateral, the yield may appear smaller as a percentage of that collateral, even if the actual earnings haven’t changed. In contrast, using leverage amplifies your position size relative to your collateral, which means your yield as a percentage of collateral can increase significantly. Example : $100,000 Yield last 24 hours within selected range Collateral = $10,000 Yield 24h = 10% If leverage is used (5x) Collateral = $10,000 Total position size = $50,000 Yield % = 50 Estimated 24hr yield does not consider APR costs in front of the lending for now. This calculation will be included in future releases. For now, it can be done manually. You can find the 24-hour borrowing costs under the Borrow Ratio section. Example: * 24h Yield = 2% * 24h Interest Rate = 0.06% (for both Token A and Token B) * Leverage = 5x To calculate your net yield, multiply the interest rate by the leverage and subtract it from the displayed yield: `2% - (0.06% × 4) = 1.76%` Note: The interest is multiplied by 4 (not 5) because you already own 1x of your position; only the borrowed portion (4x) incurs interest. Last updated 1 month ago --- # Monitoring Opened Positions | DefiTuna On the main trading page, users will see a section at the bottom under **"Opened Positions."** You must be logged in with the relevant wallet that opened the initial position to view them. By clicking on any active position, users can actively track their liquidation price on the graph. Currently, there are three functionalities available: 1. **"Close"** a position completely. 2. **"Claim"** to collect any liquidity provision fees earned. 3. **"Compound"** to add your liquidity provision fees as collateral, with or without leverage. By clicking on any active position, users can aso edit their positions by: 1. **"Limit orders"** Set a target price to automatically close your position and swap your collateral into your preferred token. 2. **"Repay debt"** Reduce your leverage at any time by adding external funds to repay your borrowed assets. Reducing your leverage will push the liquidation points further apart. 3. **"Auto-compounding"** Automatically reinvest your earnings to boost returns, whether you’re using leverage or not. **"Pool"** displays the selected token pair. The leverage used and the pool provider’s logo are also shown below. **"Status"** indicates whether the position is _In Range_, _Out of Range_, _Closed_, or _Liquidated_. **"Size"** is the notional value of the position, calculated as _Collateral + Borrowed Funds_. **"Deposited Collateral"** is the value of your initial deposit. Click the “T” button to view the breakdown by token. **"Debt"** is the amount borrowed through leverage. Borrowing fees are displayed in brackets. **"Liquidation Price"** indicates the price points at which your position may be liquidated (lower and/or upper bounds). You may have one, two, or no liquidation points, depending on your setup. **"Price / Entry"** shows the current pool price and the price at which you opened the position. **"LL / UL"** displays your _Lower Limit_ and _Upper Limit_ order prices, if set. **"Yield (Compounded)"** shows your pending yield, with compounded yield shown in brackets. **"Price Range"** displays the selected range for your LP position. **"PnL"** displays the profit and loss of your position. _PnL = (Profit/Loss on your collateral) + Yield – Borrowing Fees – Protocol Fees._ You can generate a PnL card by clicking on the arrow. **"Time"** shows the timestamp when the position was created, along with how much time has passed since then. To choose which columns to display on your Open Positions dashboard, click here and tick the relevant boxes. You can also choose to enable all. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252Fmz9Vs1rhUvwqzkqeTKXY%252Fimage.png%3Falt%3Dmedia%26token%3D581a3a92-8602-47e1-805d-cd29b8cfad6b&width=300&dpr=4&quality=100&sign=69a1dd4a&sv=2) By clicking the “T” button, you can view all dashboard values broken down by token. For instance: * If the “T” button is selected, _PnL_ is shown relative to holding the token selected in the top-right corner of the PnL chart (e.g., “PnL in SOL”). You can click the arrow to switch to the other token in the pair. * If the “$” button is selected, _PnL_ is shown relative to holding USDC in your wallet. You can also forecast your future profitability by simulating a specific "time in range" on the PnL chart. The simulation adds estimated yield based on the last 24 hours, minus estimated borrowing fees.![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F6fjtQZ8ugsc3iu9lb7T6%252Fimage.png%3Falt%3Dmedia%26token%3D2049e5c1-76b2-4e35-a612-d46eb8e0e4a4&width=300&dpr=4&quality=100&sign=1b300283&sv=2) Last updated 1 month ago --- # Supply APR | DefiTuna To determine the supply APR we use the following formula : sr(U)\=r(U)⋅U⋅(1−fee)sr(U) = r(U) \\cdot U \\cdot (1 - \\text{fee})sr(U)\=r(U)⋅U⋅(1−fee) Where: * fee = Lending protocol fee is 000 as our protocol pays everything directly to the Lenders. * r(U)\=borrow APR r(U)=\\text{borrow APR}r(U)\=borrow APR * U\=current utilizationU=\\text{current utilization}U\=current utilization Last updated 1 month ago --- # Platform Info | DefiTuna [Supply APR](https://docs.defituna.com/defituna-introduction/platform-info/supply-apr) [Yield (24h) Estimation](https://docs.defituna.com/defituna-introduction/platform-info/yield-24h-estimation) [Borrow APR and Lending Utilization](https://docs.defituna.com/defituna-introduction/platform-info/borrow-apr-and-lending-utilization) [Supported Pools](https://docs.defituna.com/defituna-introduction/platform-info/supported-pools) [Terminology](https://docs.defituna.com/defituna-introduction/platform-info/terminology) [Fees](https://docs.defituna.com/defituna-introduction/platform-info/fees) [Liquidations](https://docs.defituna.com/defituna-introduction/platform-info/liquidations) [Take Profit / Stop Loss](https://docs.defituna.com/defituna-introduction/platform-info/take-profit-stop-loss) [Compound](https://docs.defituna.com/defituna-introduction/platform-info/compound) Last updated 21 days ago --- # Supported Pools | DefiTuna We currently support Orca and Fusion AMM pools. We are actively working on expanding support to other liquidity providers. Last updated 1 month ago --- # Terminology | DefiTuna [**Directional Bias**](https://docs.defituna.com/defituna-introduction/onboarding/setting-up-a-directional-bias) **:** An icon that indicates your current market position: "Short" , "Long" or "Delta Neutral". It helps users quickly understand the directional exposure of their strategy. **Collateral:** The initial deposit made from your wallet. This is the capital against which leverage can be taken. **Leverage:** Borrowed funds used to amplify your liquidity position. These funds are sourced from lending pools and increase your exposure to market movements. **Borrow Ratio:** Represents the composition of borrowed tokens within your leveraged position. By adjusting this ratio, user can change their directional bias. For example, if a user borrows SOL, they will need to repay in SOL upon closing the position. If the market price of SOL decreases, the user can repurchase it at a lower price, thus profiting from the difference. **Position Size:** The total value of your position, calculated as: Collateral + Borrowed Tokens. **Slippage Settings:** The maximum allowed price deviation (in %) between the initiation and the execution of a position. If the market price moves beyond the allowed slippage threshold during execution, the position will fail to open. **APR (Annual Percentage Rate):** The annualized interest rate you are charged when borrowing funds, excluding the effect of compounding. **APY (Annual Percentage Yield):** The effective annual return, including the effect of compounding interest. APY represents how your earnings grow over time due to reinvested interest. **Swap:** The amount of tokens that will be exchanged in order to open the position. This value depends on your Borrow Ratio and Leverage settings. Once selected, DefiTuna calculates how many tokens need to be swapped to match the target deposit ratio for the chosen CLMM range. The swap amount is primarily influenced by the selected liquidity range and the composition of your borrowed tokens. **Liquidation price:** The market price at which your position will be forcefully closed. At this point, all borrowed funds will be automatically returned to lenders to avoid bad debt. ### [](https://docs.defituna.com/defituna-introduction/platform-info/terminology#opened-positions-section) **(Opened positions Section)** **Pool:** The token pair (e.g., SOL/USDC) in which liquidity is provided. **Debt:** The total amount of borrowed tokens used as leverage in your position. **Yield:** The fees earned in tokens as a result of providing liquidity within the selected range. Last updated 1 month ago --- # Fees | DefiTuna 1. **Protocol Fees:** To support the growth of the protocol's TVL, DefiTuna currently does not charge any fees to lenders. Instead, protocol fees are charged to users who open Liquidity Provision (LP) positions as a one-time fee applied when the position is opened. Fees vary by pool, and ca be viewed in: - The "[Pools](https://defituna.com/lending) " tab in the "Protocol fees" column - The "[Farm](https://defituna.com/farm) " tab at the top of the page, next to the pool statistics. There are two components of the fee structure: - Fee on collateral (first number displayed) - Fee on borrowed funds (second number displayed) The fee on collateral is typically 7 to 10 times lower than the fee on borrowed funds. The protocol fee structure is subject to change in the future. 2. **Limit Order Fee:** A limit order fee is charged per successful limit order. This is a one-time fee and it's applied to the notional value of the position when the limit order is executed. The limit order fee is equal to the protocol fee on borrowed funds. 3. **Liquidation Fee:** In the event of a liquidation, a 10% fee is applied to the notional value of the position, including any unclaimed fees. This fee is paid to the liquidator who executes the liquidation process. 4. **Opening a Position Fee:** DefiTuna charges a refundable deposit when opening a position. This amount is returned upon closing the position. The amount of the refundable fee is about **0.02 SOL**. 5. **Compound Fee:** The fee structure follows the same model as the Protocol Fees. Therefore, fees depend on the pool you're compounding into. Example 1 — Yield-only compound: You are compounding $1000 of yield into an open SOL/USDC position. Protocol fee for this pool is 0.005% on collateral and 0.05% on borrowed funds. Total fee = $0.05 Example 2 — Yield + Leverage compound: You are compounding $1000 of yield, along with $2000 of borrowed tokens, back into the same SOL/USDC pool. With a 3x leverage, the total amount is $3000. Total fee = $1.05 Last updated 11 days ago --- # Liquidations | DefiTuna A liquidation occurs when your Loan-to-Value ratio (LTV) exceeds the allowed maintenance margin threshold. This happens when the market moves against your position to the point where your collateral no longer sufficiently covers your borrowed amount. If your LTV is greater than or equal to the liquidation threshold, your position becomes eligible for liquidation. At that point, DefiTuna (acting as the liquidator) can trigger the liquidation process by calling the liquidation function. When this happens, your position is forcefully closed. Consider the following scenario : * Notional value: $120 * Your position is liquidated via Orca or Fusion AMM. * Liquidation Fee: 10% of the remaining funds after debt repayment. In this case: 10% of $120 = $12 goes to DefiTuna, as the liquidator. * The debt is repaid to the Lending Pool. * Any remaining funds after fees and debt repayment are returned to you. Liquidations may not be instantaneous. Execution speed depends on Solana network congestion and system activity. **Partial Liquidation** To improve execution and reduce slippage — especially on low-liquidity pools or for large position sizes — DefiTuna supports partial liquidations: If a full liquidation fails, the system will attempt to close the position in smaller portions: * First 50% * Then 25% * And so on... This staged approach increases the chances of a successful liquidation while minimizing market impact. Last updated 20 days ago --- # Take Profit / Stop Loss | DefiTuna During periods of high congestion on the Solana network, Limit Orders may require multiple attempts to execute. Please note that execution is not guaranteed, as Solana remains in Beta and our systems are continuously being optimized to deliver the best possible user experience. You can set Stop-Loss or Take-Profit orders in two ways: * During position opening: Click the **"Limit Orders"** button. * For an existing position: Click on the position, then use the "**Limit Orders"** panel that appears. A **Lower Limit (LL)** places an order below the current price and helps to limit losses or secure gains by automatically closing your position once the price drops to or below the LL trigger. This limit order is placed under the "UL" order. A **Upper Limit (UL)** places an order above the current price and helps to limit losses or secure gains by automatically closing your position once the price rises to or above the UL trigger. This limit order is placed above the "LL" order. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FBbTKv53vTzSPV5xtMgAt%252Fimage.png%3Falt%3Dmedia%26token%3D23fe6a68-d352-4892-a250-a301becf028f&width=768&dpr=4&quality=100&sign=297b3e9b&sv=2) Above is an example on the SOL/USDC pair. Liquidation price point is 229$ and stop loss/Lower Limit is set at 230$. This setup is considered risky during high volatility, as the price may quickly drop through both your limit order and the liquidation point, resulting in liquidation before the limit order is triggered. Best practice: avoid placing limit orders too close to your liquidation price. Execution is not guaranteed, and you may still be liquidated before the order is triggered. Once LL/UL order is created, it appears under the **"Opened positions"** table. If not immediately visible, you may need to enable it via the column filter. You can adjust the trigger price from this table at any time. LL/UL orders trigger full position closure only (partial closures are not yet supported). When a position is closed (manually or via LL/UL), all associated limit orders are automatically cancelled. A 0.05% fee is charged for any executed LL or UL order. **Limit Orders Swap** To enhance risk management and provide users with greater flexibility, DefiTuna allows you to choose which token your position will be swapped into when a limit order is triggered. This feature ensures a predictable and customizable outcome, matching your desired risk profile. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FSJ7D9TD0Zu739v8BiiP1%252Fimage.png%3Falt%3Dmedia%26token%3Dcc9d4685-cfc4-49b1-8a03-5422808b9cab&width=768&dpr=4&quality=100&sign=6b3d70a0&sv=2) Last updated 1 month ago --- # Compound | DefiTuna Open positions generate yield as swaps occur within your selected price range. Defituna offers users the ability to compound this yield directly into an already open position, allowing for greater capital efficiency. Users can choose between two compounding strategies: ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FAwlbbC4beG7xgi7pIDfq%252Fimage.png%3Falt%3Dmedia%26token%3Dd121ee03-a3c3-47be-9d6f-9529c1ae9ad2&width=768&dpr=4&quality=100&sign=c56f1fec&sv=2) **Reduce Leverage** * With this option, your accumulated yield is added to your position as additional collateral, without increasing the borrowed amount. * Since yield is treated as collateral, this reduces your overall leverage, lowers liquidation risk, and pushes the liquidation price further away. * This strategy is ideal for users looking to de-risk while growing their position steadily over time. **Keep Leverage** * When selected, your yield is compounded along with additional borrowed funds, maintaining the original borrow-to-collateral ratio (i.e., your leverage remains unchanged) * This means your position scales proportionally, increasing both your exposure and potential returns while keeping liquidation price points at the same level. ### [](https://docs.defituna.com/defituna-introduction/platform-info/compound#auto-compounding) Auto-compounding You can enable or disable auto-compounding in two ways: * During position opening: Click the **"Auto-compounding"** button. * For an existing position: Click on the position, then use the "**Auto-compounding**" panel that appears. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FdYRQ6J7IU9lQeLTrxTSI%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.32.49.png%3Falt%3Dmedia%26token%3D102df259-7853-4c8e-8d45-206e9afb4bb9&width=768&dpr=4&quality=100&sign=f1376669&sv=2) Last updated 1 month ago --- # Transaction Priority Fees | DefiTuna DefiTuna is built on top of the Solana network as a Defi protocol. As such, any interaction with our platform, including lending pool activity and opening/closing positions, requires direct communication with Solana validators. Under normal conditions, our default fee settings are sufficient for smooth operation. However, during periods of high network congestion, you may need to apply higher priority fees to ensure your transactions are processed in a timely manner. On the "Farm" page navigate towards the "cog " icon and click it ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FVb2GZ57VQsNzDdyVdwDK%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252016.46.41.png%3Falt%3Dmedia%26token%3Def43ca6d-853c-4bca-8904-3d22da417f65&width=768&dpr=4&quality=100&sign=f9ae75ca&sv=2) Choose "Priority Fee" tab and select either one of our pre-set options (e.g., Auto) or define a custom fee. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FxyZUoYmf05eXcuRqCFIR%252Fimage.png%3Falt%3Dmedia%26token%3Dc11302b9-fee6-415c-a01e-f366c480fb36&width=768&dpr=4&quality=100&sign=962660ba&sv=2) * Selecting "Auto" allows the protocol to apply a fee above average based on current network activity. * For greater reliability during congestion, you can boost fees up to "5x" or "10x" the average cost. * To avoid overpaying, we've implemented a "Max Fee Cap". This feature protects users from accidentally setting fees that are too high. Don't forget to lower your fee settings once congestion eases! Last updated 1 month ago --- # Borrow APR and Lending Utilization | DefiTuna DefiTuna utilizes a curve-based interest rate model to dynamically adjust Annual Percentage Rates (APR) in response to changes in utilization rates. This approach ensures efficient and balanced operation under varying market conditions. ### [](https://docs.defituna.com/defituna-introduction/platform-info/borrow-apr-and-lending-utilization#curve-mechanism) Curve Mechanism Our interest rate model targets a utilization rate UUU of **90%**. Utilization curve function scales the target APR depending upon the relationship between utilization and APR and is governed by the following formula (r(U) = borrow APR): r(U)\=r90%⋅curve(U)r(U)=r\_{90\\%}⋅curve(U)r(U)\=r90%​⋅curve(U) curve(U)\={1+(U−Ut)⋅(kd−1)1−Ut,if U\>Ut1−(Ut−U)⋅(kd−1)kd⋅Ut,if U≤Ut\\text{curve}(U) =\\begin{cases} 1+\\frac{(U - U\_t) \\cdot (k\_d - 1)}{1 - U\_t}, & \\text{if } U > U\_t \\\\ 1 - \\frac{(U\_t - U) \\cdot (k\_d - 1)}{k\_d \\cdot U\_t}, & \\text{if } U \\leq U\_t \\end{cases}curve(U)\={1+1−Ut​(U−Ut​)⋅(kd​−1)​,1−kd​⋅Ut​(Ut​−U)⋅(kd​−1)​,​if U\>Ut​if U≤Ut​​ Where: * kdk\_d kd​ = 4.04.0 4.0 * Ut\=0.9U\_t = 0.9Ut​\=0.9 (90%) Behavior of the Model * At UUU = 90%90\\%90%, r(U)r(U)r(U) = r90%r\_{90\\%}r90%​. * At UUU = 100%100\\%100%, r(U)\=4⋅r90%r(U)=4·r\_{90\\%}r(U)\=4⋅r90%​. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F2DL0nxigs22jl8NZQiMZ%252Fsupply%253Aborrow%2520curve.png%3Falt%3Dmedia%26token%3D8e55bfc6-3439-472c-af22-a7676959b182&width=768&dpr=4&quality=100&sign=6972e2f5&sv=2) From 90% to 100% utilization, the supply (and thus borrow) APY increases exponentially. This mechanism is designed to incentivize borrowers to repay their loans and encourage lenders to deposit more funds, preventing the utilization rate from ever reaching 100%. This ensures that lenders can withdraw their funds at any time and borrowers can still open LP positions when needed. Currently our target Lending APY is 36% at optimal utilization percentage point (90%). For instance, USDC Lending Utilization at 90% would put Lending APY at 36%. ### [](https://docs.defituna.com/defituna-introduction/platform-info/borrow-apr-and-lending-utilization#live-borrow-apr) **Live Borrow APR** Our Borrow APR is shown on any actively open position. Scroll down to the "Opened Positions" section and have a look at "Debt" ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FQV8LSY6LtD8aNQJBRNg5%252FBorrow%2520APR.png%3Falt%3Dmedia%26token%3Dd7535a85-ff36-4697-80c4-dc1d79ce2797&width=768&dpr=4&quality=100&sign=86064f54&sv=2) The value shown in brackets ( ) under the “Debt” section represents the borrowing fees you will need to pay when your position is closed. To calculate your net yield (i.e. your actual profit), subtract the borrowing fees from your yield: Net Yield = Yield – Borrowing Fees. In this case its: Which gives us a total of . We can deduce from this example that we farmed with leverage at a very profitable rate. Last updated 1 month ago --- # How to do a swap | DefiTuna Navigate to our website: [https://defituna.com/trade](https://defituna.com/trade) . Click the “**Connect wallet**” button — a purple icon located at the top of the page — and follow the steps to connect the wallet you'd like to use. Once connected, open the dropdown menu to select your desired trading pair. Choose the appropriate pair, then select the **“Market”** tab. From there, you can choose whether you want to buy or sell. Next, specify the amount you want to swap. You can either enter a specific amount manually or select a percentage of your wallet balance. You can choose to input either the amount you want to pay or the amount you want to receive. "**Fees"** indicate the amount you’ll pay to execute the swap. **"Price impact"** refers to the change in price caused by the size of your trade. **"Slippage tolerance"** is the maximum acceptable price deviation; if the price impact exceeds this threshold, the trade will not go through. On the right side of the screen, you’ll also find the price chart, powered by the TradingView tool suite. Last updated 16 days ago --- # Onboarding | DefiTuna [How to do a swap](https://docs.defituna.com/fusion-amm-introduction/onboarding/how-to-do-a-swap) [How to set up a limit order](https://docs.defituna.com/fusion-amm-introduction/onboarding/how-to-set-up-a-limit-order) Last updated 20 days ago --- # How to set up a limit order | DefiTuna Navigate to our website: [https://defituna.com/trade](https://defituna.com/trade) . Click the **“Connect wallet”** button — a purple icon located at the top of the page — and follow the steps to connect the wallet you'd like to use. Once connected, open the dropdown menu to select your desired trading pair. Choose the appropriate pair, then select the **“Limit”** tab. From there, you can choose whether you want to buy or sell. Next, specify the price at which you want to place the order. You can either enter a specific price manually, choose the current market price, or select a percentage relative to the market price. Then, specify the amount you want to swap. You can either enter a specific amount manually or select a percentage of your wallet balance. You may choose to input either the amount you want to pay or the amount you want to receive. Once you're ready, click “Buy SOL” or “Sell SOL” (depending on your trade direction). A wallet popup will appear — confirm the transaction to place your limit order. When placing a limit order on FusionAMM, you'll receive an NFT/SPL token that represents your order. After your order is processed, it will appear in your **"Open Orders"** dashboard, where you can monitor its status and close the order once it is filled or manually at any point before. Last updated 16 days ago --- # Platform Info | DefiTuna [Supported Pools](https://docs.defituna.com/fusion-amm-introduction/platform-info/supported-pools) [Trade History](https://docs.defituna.com/fusion-amm-introduction/platform-info/trade-history) Last updated 16 days ago --- # Supported Pools | DefiTuna All supported pools are accessible via the dropdown menu at the top of the page. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FsSHVlEFg7NLw7yllFdOZ%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-19%2520a%25CC%2580%252008.08.35.png%3Falt%3Dmedia%26token%3D41c0bace-a9e1-4523-a792-10966d5fdd89&width=768&dpr=4&quality=100&sign=94d67d67&sv=2) Last updated 20 days ago --- # Trade History | DefiTuna By clicking on **“Trade History,”** you can view all your past limit orders. Market swaps are not displayed in the Trade History. **"Pair"** displays the selected token pair. **"Direction"** indicates whether the order was a **buy** or **sell**. **"Status"** shows the current status of your limit order — either **“Filled”** or **“Cancelled.”** **"Price"** is the limit price you set for the order. **"Amount"** refers to the total size of your limit order. **"Filled"** shows the percentage of the order that has been executed. **"Opened at"** indicates when the limit order was created. **"Closed at"** indicates when the order was either filled or cancelled. **"Open Tx"** links to the **Solscan transaction** for the order’s creation. **"Close Tx"** links to the **Solscan transaction** for the order’s closure. To choose which columns to display on your **"Trade History"** dashboard, click here and tick the relevant boxes. You can also choose to enable all. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FxttB2U0YU26JLO7wcy8J%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-23%2520a%25CC%2580%252006.36.23.png%3Falt%3Dmedia%26token%3D35074362-b4b4-471e-871d-085f6b64b6a2&width=768&dpr=4&quality=100&sign=6ef94a08&sv=2) If “All Pools” is enabled, it will display all your limit orders. If it’s disabled, only limit orders for the selected token pair will be shown. Last updated 16 days ago --- # Fusion AMM Audits | DefiTuna ### [](https://docs.defituna.com/security-and-risks/audits/fusion-amm-audits#id-2025-07-23-sec3) 2025-07-23 [SEC3](https://www.sec3.dev/) [115KB\ \ fusionamm\_final\_report SEC3.pdf\ \ pdf](https://3069727834-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMyF9WLf9iWl1sLBOWmVE%2Fuploads%2F203vaCsehAgRbrhcTLH7%2Ffusionamm_final_report%20SEC3.pdf?alt=media&token=4f16172b-b2dd-4db8-8586-9d12d02e2d95) ### [](https://docs.defituna.com/security-and-risks/audits/fusion-amm-audits#id-2025-07-25-oshield) 2025-07-25 [Oshield](https://www.oshield.io/) [![Logo](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2Fgithub.com%2Ffluidicon.png&width=20&dpr=4&quality=100&sign=10d16153&sv=2)Publications/FusionAMM/FusionAMM.md at main · oshieldio/PublicationsGitHub](https://github.com/oshieldio/Publications/blob/main/FusionAMM/FusionAMM.md) Last updated 13 days ago --- # Audits | DefiTuna **DefiTuna** and **FusionAMM** smart contracts have undergone comprehensive audits conducted by leading security firms such as SEC3, Torii Security, and Oshield.io, all of which are well-established in the Solana ecosystem. [DefiTuna Audits](https://docs.defituna.com/security-and-risks/audits/defituna-audits) [Fusion AMM Audits](https://docs.defituna.com/security-and-risks/audits/fusion-amm-audits) Last updated 13 days ago --- # Platform risks | DefiTuna **Legal:** Users accept and acknowledge both the "Terms of Use" and any "Disclaimer" provided by DefiTuna. **Smart Contract Risks**: The Solana Mainnet remains in beta, which means smart contracts carry a potential risk of exploitation or malfunction. These risks are not exclusive to DefiTuna but also apply to any integrated platforms, including but not limited to Orca, Raydium and Pyth. To help mitigate these risks, DeFiTuna is currently undergoing multiple independent audits. All findings will be transparently published in our [Audits](https://docs.defituna.com/security-and-risks/audits) section. **Risk of Liquidation:** Borrowers understand and accept that their positions may be partially or fully liquidated if deemed too risky. DefiTuna does not guarantee that liquidations will occur in a timely manner. Similarly, limit orders are also not guaranteed to execute as expected. **Network Congestion:** During strong network Congestion or even a network halt , DefiTuna assumes no risks and guarantees on timely service. This means that users can experience loss caused but not limited to mispricing **Oracle Risks:** DeFiTuna relies primarily on Pyth as its oracle provider. Any disruptions, inacurracy, or manipulation of the oracle feed may result in incorrect price data, potentially affecting user positions or leading to account freezes based on invalid data. **Liquidation Mechanism:** As DefiTuna allows undercollateralised loans (more information can be found [here](https://docs.defituna.com/defituna-introduction/platform-info/liquidations) ), it employs a 24/7 liquidation bot that monitors all positions. To prevent bad debt in the Lending pool, the system will partially liquidate any positions identified as high-risk. Please refer to this page [here](https://docs.defituna.com/defituna-introduction/platform-info/liquidations) for detailed information about our liquidation process. **Divergence Loss**: This occurs when token prices diverge from their initial deposit values, resulting in the liquidity being worth less than simply holding the tokens. High market volatility can worsen this effect, particularly in concentrated liquidity pools. For more information, you can refer to the [Uniswap team's blog post](https://pintail.medium.com/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2) or consult some of our internal resources [here](https://docs.defituna.com/learn-more/understanding-impermanent-loss) . **Lending Pool 100% Utilization Risk:** While the target utilization of the lending pool is set at 90%, there may be times when utilization spikes to 100%. At 90% the lending APY is set at 36%. To discourage full utilization, the APY for borrowers increases steeply to 160% at 100% utilization. While this results in significantly higher returns for lenders, it also means that all funds may be temporarily locked, preventing withdrawals until utilization decreases. **Wallet providers**: DefiTuna is compatible with a wide range of wallets including Solfare, Phantom, Backpack, Jupiter, Glow, Brave, and Trust wallets. However, DefiTuna cannot protect users if the wallet provider they are use is compromised or exploited. Users are advised to conduct proper due diligence when selecting their wallet provider. Last updated 12 days ago --- # FAQ | DefiTuna [Trade FAQ](https://docs.defituna.com/learn-more/faq/trade-faq) [Farm FAQ](https://docs.defituna.com/learn-more/faq/farm-faq) [Lending FAQ](https://docs.defituna.com/learn-more/faq/lending-faq) Last updated 20 days ago --- # Disclaimer | DefiTuna **Protocol and Interface** This website-hosted user interface (this "Interface") is a software portal to the DefiTuna protocol, a decentralized and community-driven collection of blockchain-enabled smart contracts and tools (the "DefiTuna Protocol"). The DefiTuna Protocol facilitates peer-to-peer transactions and allows users to provide liquidity with leverage. **Use at Your Own Risk** THIS INTERFACE AND THE DEFI TUNA PROTOCOL ARE PROVIDED "AS IS," AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND. The DefiTuna team does not provide, own, or control the DefiTuna Protocol or any transactions conducted on the protocol or via related smart contracts. By using or accessing this Interface or the DefiTuna Protocol, you agree that no developer or entity involved in creating, deploying, or maintaining this Interface or the DefiTuna Protocol will be liable for any claims or damages whatsoever associated with your use, inability to use, or your interaction with other users of, this Interface or the DefiTuna Protocol, including any direct, indirect, incidental, special, exemplary, punitive, or consequential damages, or loss of profits, digital assets, tokens, or anything else of value. **Regulatory Restrictions** The DefiTuna Protocol is not available to residents of the United States, the United Kingdom, and other jurisdictions where its use is prohibited. By using or accessing this Interface or the DefiTuna Protocol, you represent that you are not located in, incorporated or established in, or a citizen or resident of any such jurisdiction. You also represent that you are not subject to sanctions or otherwise designated on any list of prohibited or restricted parties or excluded or denied persons. Risk of Leveraged Positions Using leveraged positions involves significant risk, including the potential loss of all assets provided as collateral. Users should carefully assess their risk tolerance and seek independent advice if necessary. Leveraged positions can result in liquidation if the collateral value falls below the required threshold. **Peer-to-Peer Interactions** The DefiTuna Protocol enables peer-to-peer interactions for providing liquidity and borrowing assets. Users must understand the risks associated with such transactions, including counterparty risk and potential issues with the underlying smart contracts. **No Guarantees** The DefiTuna team makes no guarantees regarding the security, functionality, or availability of the Interface or the DefiTuna Protocol. Users are responsible for their actions and transactions and should thoroughly understand the technology and associated risks before engaging with the platform. For further information, users should refer to the complete documentation available on the DefiTuna website and consult additional resources if needed. Last updated 11 months ago --- # DefiTuna Audits | DefiTuna ### [](https://docs.defituna.com/security-and-risks/audits/defituna-audits#id-2025-01-27-torii-security) 2025-01-27 [Torii Security](https://torii.team/) [![Logo](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2Fgithub.com%2Ffluidicon.png&width=20&dpr=4&quality=100&sign=10d16153&sv=2)audits/solana/torii-defituna-report.pdf at main · Torii-Security/auditsGitHub](https://github.com/Torii-Security/audits/blob/main/solana/torii-defituna-report.pdf) ### [](https://docs.defituna.com/security-and-risks/audits/defituna-audits#id-2025-03-17-sec3) 2025-03-17 [SEC3](https://www.sec3.dev/) [![Logo](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2Fgithub.com%2Ffluidicon.png&width=20&dpr=4&quality=100&sign=10d16153&sv=2)reports/reports/sec3\_defituna\_final.pdf at master · sec3-service/reportsGitHub](https://github.com/sec3-service/reports/blob/master/reports/sec3_defituna_final.pdf) Last updated 13 days ago --- # How to open different strategies | DefiTuna [Position opening](https://docs.defituna.com/learn-more/how-to-open-different-strategies/position-opening) [Long Farming](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming) [Short Farming](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming) [Neutral Farming](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming) [Perpetual Swap on DefiTuna](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna) Last updated 5 months ago --- # Terms of Use | DefiTuna ### [](https://docs.defituna.com/security-and-risks/terms-of-use#acceptance-of-terms) Acceptance of Terms By accessing or using the DefiTuna website (the "Site") and related services (the "Services"), you agree to be bound by these Terms of Use ("Terms"). If you do not agree to these Terms, do not use the Site or Services. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#services-overview) Services Overview DefiTuna enables users to provide liquidity with leverage on Orca pools. Users can open leveraged positions, borrowing tokens from lenders and paying APR based on fund utilization. All transactions are peer-to-peer and conducted via smart contracts. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#eligibility) Eligibility By using the Site and Services, you represent that you are at least 18 years old and have the legal capacity to enter into these Terms. The Services are not available to users in jurisdictions where such use is prohibited, including the United States and the United Kingdom. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#user-responsibilities) User Responsibilities You are responsible for your actions and transactions on the Site. Ensure you understand the risks associated with leveraged positions, including the potential loss of all collateral. Always verify the URL and the legitimacy of the Site before connecting your wallet. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#no-warranties) No Warranties The Site and Services are provided "as is" and "as available" without warranties of any kind. DefiTuna does not guarantee the accuracy, completeness, or reliability of the content. Use the Services at your own risk. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#limitation-of-liability) Limitation of Liability To the fullest extent permitted by law, DefiTuna is not liable for any indirect, incidental, special, punitive, or consequential damages arising from your use of the Site or Services. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#privacy) Privacy Your use of the Site is subject to our Privacy Policy. By using the Services, you consent to the collection and use of your information as described in the Privacy Policy. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#intellectual-property) Intellectual Property All content on the Site is the property of DefiTuna or its licensors and is protected by intellectual property laws. You may not use, modify, or distribute any content without prior written consent. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#changes-to-terms) Changes to Terms DefiTuna reserves the right to modify these Terms at any time. Changes will be effective immediately upon posting on the Site. Your continued use of the Services constitutes acceptance of the revised Terms. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#governing-law) Governing Law These Terms are governed by the laws of the jurisdiction in which DefiTuna operates, without regard to its conflict of law provisions. ### [](https://docs.defituna.com/security-and-risks/terms-of-use#contact-information) Contact Information For any questions about these Terms, please contact us at [\[email protected\].](https://docs.defituna.com/cdn-cgi/l/email-protection#2d5e585d5d425f596d49484b445958434c034e4240) Last updated 11 months ago --- # Lending FAQ | DefiTuna #### [](https://docs.defituna.com/learn-more/faq/lending-faq#how-can-i-withdraw-my-yield) **How can I withdraw my yield?** Because lending auto-compounds your earnings, your yield is automatically added to your deposit. To claim it, click on 'Withdraw' and enter the amount of the yield you've earned. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FKwhpTynaggEH8nDg5IJ4%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-18%2520a%25CC%2580%252019.43.02.png%3Falt%3Dmedia%26token%3D04144da8-5eb0-4b78-a442-613ff1da1fd6&width=768&dpr=4&quality=100&sign=a2f8eefb&sv=2) #### [](https://docs.defituna.com/learn-more/faq/lending-faq#why-is-the-yield-displayed-in-usd) **Why is the yield displayed in USD?** By default, lending displays the USD value of your deposit and your yield — which is exclusively composed of the token you deposited. To view the value of your deposit and earned yield in the specific token, click the 'T' button in the top right corner of the page. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F0jy0nTuuXPTesBRBzv4I%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-18%2520a%25CC%2580%252019.49.57.png%3Falt%3Dmedia%26token%3Df93b989f-f0cc-4983-8377-960975e754d4&width=768&dpr=4&quality=100&sign=9bc18354&sv=2) Last updated 20 days ago --- # Contact | DefiTuna For any Business inquiries or special requests please contact : [\[email protected\]](https://docs.defituna.com/cdn-cgi/l/email-protection#1f6c6a6f6f706d6b5f7b7a79766b6a717e317c7072) Discord : [https://discord.com/invite/defituna](https://discord.com/invite/defituna) X : [https://x.com/DeFiTuna](https://x.com/DeFiTuna) Official Website : [https://defituna.com/](https://defituna.com/) Last updated 13 days ago --- # Trade FAQ | DefiTuna #### [](https://docs.defituna.com/learn-more/faq/trade-faq#my-limit-order-got-filled-but-i-did-not-receive-sol.-instead-i-received-an-spl-token.-how-can-i-get) **My limit order got filled but I did not receive SOL. Instead, I received an SPL token. How can I get my SOL?** When you place a limit order on FusionAMM, you receive an NFT/SPL token that represents your order. To claim your SOL, you need to close the order, which will automatically burn the associated SPL token and return your funds. Do not burn the SPL token manually — this will make your order unrecoverable. You can also close the order at any time before it is fully or partially filled to reclaim your initial deposit. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F4S5gRnf8OhWXYBsuqm83%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-19%2520a%25CC%2580%252009.41.34.png%3Falt%3Dmedia%26token%3Da1ca5b4d-4194-425e-ad79-54952ea7fcb4&width=768&dpr=4&quality=100&sign=c4edf92b&sv=2) #### [](https://docs.defituna.com/learn-more/faq/trade-faq#i-moved-the-spl-token-to-another-wallet.-how-can-i-claim-my-sol-now) **I moved the SPL token to another wallet. How can I claim my SOL now?** We strongly recommend not interacting directly with the SPL token received when opening limit orders.
 In theory, transferring this token gives the new wallet the ability to close the associated limit order and claim the funds.
 However, this scenario is not currently supported by the UI and is not the intended use case, so we cannot guarantee it will work correctly. Last updated 20 days ago --- # Understanding Impermanent Loss | DefiTuna **What Is Impermanent Loss (IL)?** Impermanent Loss (IL) occurs when the value of your assets in a liquidity pool changes compared to simply holding them in your wallet. This happens because of price movements between the paired tokens in the pool. While liquidity provision generates fees and rewards, the divergence in token prices can lead to lower returns than expected – this is the impermanent loss. The term “impermanent” is used because the **loss isn’t realized until you withdraw your liquidity.** If prices realign to their original ratio, the loss can disappear. However, this also means that if you **withdraw at an unfavorable price ratio, the loss becomes permanent.** **RULE 1: IL is fixed only once position is closed** * * * #### [](https://docs.defituna.com/learn-more/understanding-impermanent-loss#il-as-part-of-the-pnl-equation) **IL as Part of the PnL Equation** Your overall PnL in liquidity provision consists of 3 components: * **Trading Fees Earned:** Rewards from providing liquidity. * **Token Price Movement:** The appreciation or depreciation of the tokens in your position. * **Impermanent Loss:** The reduction in value due to price divergence between tokens in the pool. When users focus only on fees earned and token appreciation, they often overlook the IL component. This can make the position appear profitable when, in fact, the net returns are lower due to IL. **RULE 2: Liquidity Farming has non-linear PnL** * * * #### [](https://docs.defituna.com/learn-more/understanding-impermanent-loss#long-is-only-long-short-is-only-short-within-the-range) **Long Is ONLY Long, Short Is ONLY Short Within the Range** **There is an exemption!** Learn more about it [here](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna) ! If a position is opened out of range at position creation stage this rule may not apply depending on the range selected! In DeFiTuna, positions operate within a specific price range. Here’s what that means: * A **long position** benefits from token appreciation but only within the active range. Once the price exits the range, the position effectively “freezes.” No new fees are earned, and the unrealized IL is locked in. * A **short position** works the opposite way but is similarly constrained by its range. Many users mistakenly believe they are making money as token prices move favorably within the range. However, if the price moves out of range, the position stops earning, and any gains could be eroded by IL upon exit. **RULE 3: Out-of range positions brings nothing but IL** * * * #### [](https://docs.defituna.com/learn-more/understanding-impermanent-loss#leverage-and-its-effect-on-il) **Leverage and Its Effect on IL** * **Amplification of Exposure:** Leverage magnifies both gains and losses. In the context of liquidity provision, this means that any price movement between the paired tokens has a multiplied effect on your position. If the tokens diverge in price, the impermanent loss is amplified in proportion to the leverage. * **Higher Borrowing Costs:** Leveraged positions typically involve borrowing assets, which adds to your overall costs. If the IL is already reducing your returns, the additional borrowing costs can turn a seemingly profitable position into a loss. * **Margin Pressure:** In leveraged setups, IL can reduce your position's value to the point where margin requirements are no longer met. This could lead to forced liquidation, turning unrealized losses into realized ones. **RULE 4: Leverage amplifies your IL** * * * #### [](https://docs.defituna.com/learn-more/understanding-impermanent-loss#practical-considerations) Practical Considerations * **Choose Wider Ranges for Stability:** A wider range reduces the sensitivity to price movements and mitigates IL, though it may lower your fee earnings. * **Use Conservative Leverage:** Lower leverage minimizes the amplification of IL and gives you more room to manage your position without being forced to close. * **Monitor Constantly:** With both leverage and narrow ranges, continuous monitoring is essential to avoid adverse outcomes. Last updated 1 month ago --- # Farm FAQ | DefiTuna #### [](https://docs.defituna.com/learn-more/faq/farm-faq#my-position-has-a-semi-long-directional-bias.-why-is-my-collateral-decreasing-even-though-the-price) **My position has a semi-long directional bias. Why is my collateral decreasing even though the price is going up?** With a semi-long directional bias, you benefit from price appreciation up to a certain point. Beyond that, since you're selling the best-performing asset in the pair — which also constitutes part of your debt — the value of your debt increases faster than your collateral, leading to a reduction in your profit. This phenomenon is visible on the PnL chart at the top of the page. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F7MdlOY7J6PLRoq5tN41M%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-18%2520a%25CC%2580%252020.06.26.png%3Falt%3Dmedia%26token%3D439e9696-b065-4393-b7c1-7cd6ea1d5694&width=768&dpr=4&quality=100&sign=cd03c84c&sv=2) In this example, the PnL chart shows that starting at $185, your collateral's profit begins to decrease. #### [](https://docs.defituna.com/learn-more/faq/farm-faq#my-position-has-a-neutral-directional-bias-the-prive-moved-out-of-my-range-and-im-experiencing-a-los) **My position has a neutral directional bias, the prive moved out of my range and I'm experiencing a loss. Why?** You've realized your impermanent loss. A neutral position is essentially short volatility. In such a strategy, your goal is to close the position as close as possible to your entry price, especially if the position was opened at the midpoint of your range. The PnL chart highlights that the maximum loss within the range occurs at the edges. Once the price moves outside your range, you're no longer earning swap fees, meaning there's no yield to offset the impermanent loss. Therefore, if the swap fees generated don't outweigh the impermanent loss, you end up with a net loss when you exit the position. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FHUAu6tW6uKhfHXqG0trJ%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-19%2520a%25CC%2580%252006.44.30.png%3Falt%3Dmedia%26token%3Ded699765-5c48-4b6f-b071-1deeace7c522&width=768&dpr=4&quality=100&sign=9ed838bf&sv=2) Further information on the Neutral Farming strategy can be found [here](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming) . #### [](https://docs.defituna.com/learn-more/faq/farm-faq#despite-my-position-having-a-full-long-directional-bias-my-potential-upside-profit-is-very-small.-wh) **Despite my position having a full-long directional bias, my potential upside profit is very small. Why is that?** When taking a full-long directional bias, it’s important to set your range so that your initial deposit is primarily composed of the token you’re long on. This ensures that as the token’s price increases, your position gradually converts that token into the paired asset — effectively locking in gains as the price rises. If your range is too wide or positioned too far above your entry price, your position may start off with too much of the quote asset, limiting your exposure to the upside. For an effective full-long setup, you generally want to position your lower bound close to your entry price, while leaving room on the upside for price appreciation. This way, your position can capture more profit as the price moves up through your range. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FuKATMuYUHPoz3I8X16DJ%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-19%2520a%25CC%2580%252006.52.33.png%3Falt%3Dmedia%26token%3D294c80b6-a136-42c4-80ad-abda4f2d8fd3&width=768&dpr=4&quality=100&sign=69281384&sv=2) Further information on the Long Farming strategy can be found [here](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming) . #### [](https://docs.defituna.com/learn-more/faq/farm-faq#my-pnl-shows-a-profit-but-when-i-try-to-withdraw-i-end-up-with-less-sol-than-i-initially-deposited) **My PnL shows a profit, but when I try to withdraw, I end up with less SOL than I initially deposited. Why?** By default, PnL is shown in USD ($), meaning it reflects your performance relative to holding USDC in your wallet. By clicking the “T” button, you can switch the PnL display to reflect performance in tokens, based on the token selected in the top-right corner of the PnL chart (e.g., “PnL in SOL”). You can click the arrow to switch to the other token in the pair. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FikZP2lvvkQPxUR0DAvwL%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-19%2520a%25CC%2580%252007.17.37.png%3Falt%3Dmedia%26token%3D2614cf4e-c037-456b-936b-e101e4c78187&width=768&dpr=4&quality=100&sign=7a8a0a7d&sv=2) Example: * You deposited 10 SOL when the price was $160 → total value = $1,600 * The price of SOL rises to $180, and your liquidity position is now worth $1,710 * In USD terms: $1,710 - $1,600 = $110, so your PnL in USD is +$110 * However, in SOL terms: $1,710 / $180 = 9.5 SOL, meaning you now hold 0.5 SOL less * So your PnL in SOL is -0.5 SOL Therefore, always refer to the PnL chart and select the appropriate view (token A or token B) to understand your performance in the unit that matters to you. Last updated 20 days ago --- # Brand Kit | DefiTuna Use the following guidelines in order to engage with our brand. [92MB\ \ DefiTuna - Branding Toolkit (4).pdf\ \ pdf](https://3069727834-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMyF9WLf9iWl1sLBOWmVE%2Fuploads%2FwTz7kJasmLRoUW50phFV%2FDefiTuna%20-%20Branding%20Toolkit%20(4).pdf?alt=media&token=82676f6a-6b83-4e2e-9bbd-41b2b477a8a2) [64KB\ \ Logo.zip\ \ archive](https://3069727834-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMyF9WLf9iWl1sLBOWmVE%2Fuploads%2F4eAXf6qJ6gYik8TL54qr%2FLogo.zip?alt=media&token=d26bd64a-7ba7-470b-b4dc-fc1b54a8b8f6) [20MB\ \ Fonts.zip\ \ archive](https://3069727834-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FMyF9WLf9iWl1sLBOWmVE%2Fuploads%2F3lXbBKbjRFhI36SYqMF1%2FFonts.zip?alt=media&token=623f4d2e-8517-4510-a527-f6d7571a27c2) Last updated 4 months ago --- # SDK and Smart Contracts | DefiTuna Inside the Repository you will find latest IDL and up to date SDK that should enable you to build on top of DefiTuna. Documentation for DefiTuna SDK's can be found within the repository. For any questions or assistance please reach out on our Discord by opening a ticket. [**GitHub Repository**](https://github.com/DefiTuna/tuna-sdk) [**Solana Program Address**](https://solscan.io/account/tuna4uSQZncNeeiAMKbstuxA9CUkHH6HmC64wgmnogD#anchorProgramIdl) For any special requests open a ticket on our Discord or via our website. Last updated 13 days ago --- # Short Farming | DefiTuna **What is Short Farming?** Short farming is a strategy that lets you profit when the price of an asset decreases. In this example, you borrow SOL to sell it for USDC and provide both as liquidity in a Liquidity Farming. If SOL’s price falls, it will be bought back at lower prices within the range you set, generating profits. Additionally, you earn trading fees while your position stays within the range. Think of it as **a limit order that also earns fees while waiting for the price to move**. * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming#short-exposure-fully-adjustable-on-defituna) Short Exposure: Fully Adjustable on DeFiTuna DeFiTuna allows you to control how much exposure you have to the market. By adjusting parameters like deposit ratio, price range, borrow ratio, and leverage, you can create a position that matches your market outlook—whether you prefer higher potential returns with increased risk or a safer, more moderate approach. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FCJOv2m8TtDInOJG35wRG%252FShort.png%3Falt%3Dmedia%26token%3D37d64a8e-0b03-46ae-988f-bb6375367894&width=768&dpr=4&quality=100&sign=a455b931&sv=2) #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming#key-parameters-to-manage-short-exposure) Key Parameters to Manage Short Exposure 1. **Deposit Ratio** * This is how much of your position consists of USDC. * Higher deposit ratios increase your exposure to the strategy. * For example, creating an out-of-range position with a 100% deposit ratio of USDC maximizes your short exposure. 2. **Range** * The price range determines when your borrowed SOL will be repurchased. * Setting a lower minimum price means SOL will be bought back for less, increasing your profits. * A wider range can reduce fee-earning efficiency. Think of it like setting a lower target price for a limit order. 3. **Borrow Ratio** * Borrowing more SOL increases your exposure to the strategy. * If you allocate 100% of the borrowed SOL to the position, you maximize its potential profitability. 4. **Leverage** * Leverage allows you to increase the size of your position by borrowing additional funds. * Higher leverage can amplify your profits if the price moves in your favor but also increases your risk. * **Tip**: To reduce the risk of liquidation, you can borrow more SOL or adjust your deposit ratio and price range for a safer setup ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FHpi9rKImgLKGbFEEGNIh%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252016.38.05.png%3Falt%3Dmedia%26token%3D00b1bcfe-b2b4-42c2-9dc8-bb14e9acf29d&width=768&dpr=4&quality=100&sign=27eae0a5&sv=2) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming#advanced-tip-boost-profits-through-compounding) Advanced Tip: Boost Profits Through [Auto-Compounding](https://docs.defituna.com/defituna-introduction/platform-info/compound) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming#important-note) Important Note: When your position goes out of range, you stop benefiting from further price decreases. Ensure that your range is well-optimized for the expected market movement. * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming#final-reminder) **Final Reminder:** Short farming is a powerful way to profit from declining prices during Bear Market, but it requires careful planning and risk management. Use DeFiTuna’s flexible tools to adjust your position, align it with your goals, and ensure sustainable growth. Last updated 1 month ago --- # Long Farming | DefiTuna **What is Long Farming?** Long farming is a strategy that lets you profit when the value of an asset increases. In this example, you borrow USDC to buy SOL and provide both as liquidity in a Liquidity Farming. If SOL’s price rises, it will sell at higher prices within the range you set, generating profits. Additionally, you earn trading fees while your position stays within the range. Think of it as a limit order that also earns fees while waiting for the price to move. **Long Exposure: Fully Adjustable on DeFiTuna** DeFiTuna gives you complete control over your exposure. By adjusting parameters like deposit ratio, price range, borrow ratio, and leverage, you can customize your position to match your goals—whether you want higher potential profits with more risk or a more balanced, safer position. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F1LBAW5OiEhLVj87kWYJj%252FLong.png%3Falt%3Dmedia%26token%3D7b166cf7-9032-4c95-9db4-9c17df755af2&width=768&dpr=4&quality=100&sign=919646c0&sv=2) **Key Parameters to Manage Long Exposure** 1. **Deposit Ratio** * This is how much of your position consists of SOL. * **Higher deposit ratios** increase your exposure to SOL. * For instance, creating an **out-of-range position** with a 100% deposit ratio of SOL allows you to maximize your exposure. 2. **Range** * The price range determines where your SOL will be sold. * Setting a higher maximum price means your SOL will sell for more, but it may take longer to reach that price. * A wider range can also reduce fee-earning efficiency. Think of it like a balancing betweed fees generation and 3. **Borrow Ratio** * Borrowing more USDC increases your exposure to SOL. * If you allocate 100% of the borrowed USDC to purchasing SOL, you maximize your position’s growth potential. 4. **Leverage** * Leverage allows you to increase the size of your position by borrowing additional funds. * Higher leverage can amplify your profits if the price moves in your favor but also increases your risk. * **Tip**: To reduce the risk of liquidation, you can borrow more USDC or adjust your deposit ratio and price range for a safer setup. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FLP6EjK1hENYlqB7kZk3g%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252016.31.03.png%3Falt%3Dmedia%26token%3D82d04c2e-baaa-4f36-a68f-46fee63d4287&width=768&dpr=4&quality=100&sign=fb222a5c&sv=2) #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming#advanced-tip-boost-profits-through-compounding) Advanced Tip: Boost Profits Through [Auto-Compounding](https://docs.defituna.com/defituna-introduction/platform-info/compound) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming#important-note) Important Note: When your position goes out of range, you stop benefiting from further price decreases. Ensure that your range is well-optimized for the expected market movement. * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming#final-reminder) **Final Reminder:** Long farming is a powerful way to grow your portfolio during Bull Market, but it requires careful planning and risk management. Use DeFiTuna’s flexible tools to adjust your position, align it with your goals, and ensure sustainable growth. Last updated 1 month ago --- # Neutral Farming | DefiTuna **What is Neutral Farming?** Neutral farming is a strategy designed to minimize exposure to price movements while maximizing fee earnings. This is done by balancing your position between an asset like SOL and a stable asset like USDC. You borrow one asset, combine it with the other, and provide liquidity in a Concentrated Liquidity Automated Market Maker (CLAMM). However, it’s important to note that **pure delta-neutral positions are impossible due to the nature of liquidity pools**. This strategy is better described as **pseudo delta-neutral**, as slight imbalances may occur. In practice, such positions function as a **short volatility strategy**, meaning you are effectively betting on the price staying within a narrow range. Delta-neutral farming offers a balanced risk-reward ratio, making it a compelling choice for stable returns. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FBlMj9CoeAc4jeZiNfOiV%252FNeutral.png%3Falt%3Dmedia%26token%3D9e43c982-3d0f-4942-9a6c-5a59cf7ba536&width=768&dpr=4&quality=100&sign=e232e998&sv=2) #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming#key-characteristics-of-delta-neutral-farming) Key Characteristics of Delta-Neutral Farming 1. **Pseudo Delta-Neutral** * True neutrality isn’t achievable because liquidity pools naturally expose you to price movements. Instead, this strategy minimizes exposure by balancing borrowed and deposited assets. * The closer the price stays to the center of your range, the more effective this strategy becomes. 2. **Short Volatility** * This strategy profits from low market volatility. * Your main goal is to earn fees while the price remains stable within your range. If the price moves too far in either direction, your impermanent loss increases. 3. **Balanced Risk-Reward** * Delta-neutral farming doesn’t aim for large directional profits. Instead, it offers a consistent and relatively lower-risk way to earn fees. * Ideal for users looking for stability in volatile markets. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FfF6npBxG7MlF36DY3suy%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252016.41.21.png%3Falt%3Dmedia%26token%3Dd3a0388f-e2cc-41e7-952d-f2e799146823&width=768&dpr=4&quality=100&sign=c171195b&sv=2) You can use the PnL calculator at the top of the screen to simulate how long you need to stay in range—based on the last 24-hour yield estimate—to become fully profitable within the full range. In this example, it will take approximately 5 days to reach full profitability. Don’t forget to set up [limit orders](https://docs.defituna.com/defituna-introduction/platform-info/take-profit-stop-loss) to secure your profits and minimize potential losses. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FqzrE6UfpiNuDqQPyQZBZ%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252016.43.22.png%3Falt%3Dmedia%26token%3D987dd049-146e-4141-9b26-9f5d72d54a2a&width=768&dpr=4&quality=100&sign=3c9fb19d&sv=2) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming#how-to-set-up-a-delta-neutral-position) How to Set Up a Delta-Neutral Position 1. **Balance Your Borrow Ratio** * Adjust your Borrow Ratio until the directional bias displays "Neutral". 2. **Set a Balanced Range** * Choose a price range where you expect the market to remain stable. * A tighter range generates more fees but increases the risk of the position going out of range. * Aim for a range that provides equal upside and downside potential. In the example above, there is a 5% buffer to the downside and 5% to the upside. As a result, impermanent loss is symmetrical on both sides. 3. **Leverage** * Use moderate leverage to enhance your returns without introducing excessive risk. * Be cautious, as higher leverage increase exposure if the price moves sharply. **Important:** This setup results in a position that is delta-neutral in USDC terms. If you want to be delta-neutral in SOL terms, click the arrow in the top-left corner, then adjust your borrow ratio until impermanent loss to the downside equals impermanent loss to the upside. The directional bias will then show as slightly long. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FviW51ULiu1niu0JyhHGi%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252017.02.41.png%3Falt%3Dmedia%26token%3Dc52b95bc-8d7f-48e7-bd49-b982fa040fbe&width=768&dpr=4&quality=100&sign=44dc7c8&sv=2) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming#advanced-tip-boost-profits-through-compounding) Advanced Tip: Boost Profits Through [Auto-Compounding](https://docs.defituna.com/defituna-introduction/platform-info/compound) * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming#important-notes) Important Notes * **Risk of Range Breakout**: If the price moves outside your range, you stop earning fees and may be left holding an imbalanced position. Regular monitoring is essential. * **Short Volatility**: This strategy is most effective in stable markets where prices are unlikely to move significantly. It works best when the price stays within the range you set. * **Fees as Compensation**: While price exposure can’t be fully eliminated, the fees you earn help offset this risk and provide consistent returns. * * * #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming#final-reminder) **Final Reminder:** Delta-neutral farming is not about chasing big profits—it’s about stability and consistent fee earnings, during Flat Market. By carefully balancing your position and monitoring your range, you can achieve a strategy that offers one of the most balanced risk-reward ratios in liquidity farming. Last updated 1 month ago --- # Perpetual Swap on DefiTuna | DefiTuna **Key Characteristics of a Perpetual Swap:** * **No Expiration:** Users can hold a position indefinitely without an expiry date. * **Leverage:** Funds are borrowed and instantly swapped to amplify exposure in a specific direction. * **Funding Rate:** A funding mechanism ensures that the price of the perpetual swap stays close to the underlying asset's price. **Some things to consider:** Simply borrowing an asset is not enough to short it. Once the asset is borrowed, it must be immediately swapped to allow for repurchase at a later date. A trader realizes profit when the swapped funds are exchanged back into the borrowed asset after a price change. **Example:** Imagine I borrow an iPhone worth $1,000. I sell it immediately for cash and wait. Six months later, the iPhone's market price drops to $600. I buy it back and return it, keeping the $400 difference as profit. If I hadn’t sold the iPhone when I borrowed it, I would still be exposed to its price movements, but I wouldn’t actually be short. **Steps to Enter a Long Position:** 1. Borrow a token. 2. Immediately swap it into a different token. 3. Wait for the borrowed token to increase in value. 4. Swap back into the borrowed token and repay it, profiting from the price difference (between what is returned and the borrowed amount). **Simulating a Long Perpetual Position on DeFiTuna:** Now that we understand the basics, let’s simulate this process on DeFiTuna. Assume the current SOL price is 151 USDC per SOL. #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna#step-1-set-leverage-and-borrow-ratio) **Step 1 : Set Leverage and Borrow Ratio** ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252Fg7UTOQbvvpYuvcyE4Us3%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252012.33.55.png%3Falt%3Dmedia%26token%3D5ed4a151-8506-4b14-aa0d-d76362664e0b&width=768&dpr=4&quality=100&sign=c743887b&sv=2) In the following scenario, we've adjusted our **Borrow Ratio** entirely to USDC, as shown in the red rectangular box on the left-hand side under **Collateral.** * **Collateral:** 100 USDC * **Leverage:** 4x * **Borrow Ratio:** 300 USDC (100% USDC borrow) * **Total Position Size:** 400 USDC #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna#step-2-swap-on-clmm-define-your-range) **Step 2: Swap on CLMM - Define Your Range** On CLMM (Concentrated Liquidity Market Maker), your directional bias isn’t determined just by what you borrow — but what your position holds after the swap. Remember the iPhone analogy? If you borrow an iPhone but never swap it into cash then you’re not really "short" on the iPhone. Similarly, in this scenario, although we’ve borrowed USDC, we haven’t yet executed the correct conversion or swap to establish a directional position. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F4Q37Us2DTcZ7aVNZveIK%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252012.43.54.png%3Falt%3Dmedia%26token%3D85fb98f3-68fc-401d-9654-5f9919174c7a&width=768&dpr=4&quality=100&sign=19288a99&sv=2) You can always see what the Swap will end up looking like under "Position Size" highlighted by the red rectangle on the left hand side . The price range you select determines your swap result: * If you choose a range above the current price (right side of the curve), your borrowed USDC will be fully converted into SOL. * If the range includes the current price, you’ll hold a mix of SOL and USDC (as shown below). ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F8fZZ2Mg8QWEr3j6XltJz%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252012.46.48.png%3Falt%3Dmedia%26token%3D09fd0f1e-b6c7-4df1-a8ef-0dc423b1c0e9&width=768&dpr=4&quality=100&sign=6c48b653&sv=2) * If the range is below the current price, you will hold USDC and not get long SOL. The following example demonstrates how a **full long SOL** position can be set up as a perpetual: ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F4GycxYR4KjX5fVQOTJCP%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252012.49.16.png%3Falt%3Dmedia%26token%3D02f87d37-1216-41b8-be81-21e855be9d7d&width=768&dpr=4&quality=100&sign=4afe7c79&sv=2) * Set your range from $160 to $165. As the price enters this range, your SOL position begins to unwind (take profit). * Alternatively, set your range to $200 - $201 with a limit order that acts as a take-profit. This mimics a perpetual future with minimal linear decay or price bleed. #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna#step-3-setting-up-take-profit-stop-loss) **Step 3 : Setting up Take Profit / Stop Loss** Use "[Limit Orders](https://docs.defituna.com/defituna-introduction/platform-info/take-profit-stop-loss) " to specify where you'd like to take profit and trigger a stop-loss. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FN6md03km9rLlIW1f5zSP%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-08%2520a%25CC%2580%252012.53.18.png%3Falt%3Dmedia%26token%3Da7e0a774-4b4e-4b4f-b9ce-e91006083736&width=768&dpr=4&quality=100&sign=6906b130&sv=2) You can set these during position creation or add them later by clicking on an open position. By reversing the setup, you can also simulate a **Short Perpetual Position** on DefiTuna. #### [](https://docs.defituna.com/learn-more/how-to-open-different-strategies/perpetual-swap-on-defituna#key-things-to-remember) Key Things to Remember: * **What you borrow is what you short!** * Your **Borrow Ratio** is only half the equation—what you swap into is just as important! * Always pay close attention to your **range setup.** * Use **limit orders** as stop-loss or take-profit orders. Last updated 1 month ago --- # Tokenomics | DefiTuna TGE Date : 30th July 2025! ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FkDCnvtUthLm4mUSHvMnh%252Fimage.png%3Falt%3Dmedia%26token%3De2b3e670-7fc1-455a-8a00-aef23e7c4d66&width=768&dpr=4&quality=100&sign=7bd0fca3&sv=2) ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252Fr48K8bbjbsOYO5s6ciTy%252Fimage.png%3Falt%3Dmedia%26token%3D70e29561-b7f4-44be-af88-5dbeac627bb2&width=768&dpr=4&quality=100&sign=9bf4123&sv=2) ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FPvlFdyrA6ntbm97kGe5L%252Fimage.png%3Falt%3Dmedia%26token%3D230f4f3d-c3ea-4c18-a958-08219d517d5c&width=768&dpr=4&quality=100&sign=153c1efd&sv=2) 50% Treasury : DefiTuna will retain 50% of all tokens at launch (Treasury) and will lock them in the staking pool to participate in revenue sharing just like everyone else. This will ensure that the team can operate sustainably, grow the protocol, and continue innovating at the forefront of change. 15.8% Investors : Allocated to pre-seed and seed round investors. 10% Core Contributors : Reserved for early team members and advisors. 10% Liquidity Provision : To ensure sufficient liquidity exists on the open market both on DEX's as well as future CEX listings. 4.05% Initial Seed Liquidity : Tokens placed as concentrated liquidity and limit orders to jump-start the market. This liquidity will be available at starting prices on the open market for anyone to purchase. 5.00% Initial Seed Liquidity (Pre-sale) : Token sale for Community members. “Initial Seed Liquidity (4.05%)” will be used either for a pre-sale event or simply as liquidity placed on our Fusion AMM for anyone to acquire at launch. “Liquidity Provision (10%)” will be used to ensure sufficient on-chain liquidity of the token. This means that 14.05% will not be staked to compete for the revenue share. #### [](https://docs.defituna.com/usdtuna-token/tokenomics#token-economics) **Token Economics:** $TUNA is at the heart of Solana DeFi. All revenue generated from both FusionAMM and DefiTuna will be distributed among $TUNA stakers. Stakers receive revenue from both protocols in proportion to their share of the staking pool. Example: $Tuna Lending TVL : 100,000,000 tokens My Lending deposit : 10,000,000 $Tuna tokens My share : 10% of the entire Lending pool Revenue claim = 10% of all revenue. #### [](https://docs.defituna.com/usdtuna-token/tokenomics#staking-unstaking-cooldowns) Staking/Unstaking Cooldowns: Newly staked $TUNA tokens begin generating revenue immediately upon being staked. After unstaking, $TUNA tokens require a 24-hour **Cooldown** period before they can be withdrawn. [PreviousContact](https://docs.defituna.com/brand-kit/contact) [NextSDK and Smart Contracts](https://docs.defituna.com/defituna-for-builders/sdk-and-smart-contracts) Last updated 7 days ago --- # Position opening | DefiTuna 1. Connect wallet ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FX4JApLlA7Ma43tUhR8Al%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252022.30.44.png%3Falt%3Dmedia%26token%3D83b3175e-a3ef-490d-8366-3a01b19b9dd9&width=768&dpr=4&quality=100&sign=bac3f950&sv=2) 1. Go to "Farm" ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FkKOaM59YdK0RNnY6X1fy%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252022.37.12.png%3Falt%3Dmedia%26token%3D45e49808-c0d1-4de7-91d4-db930f189bea&width=768&dpr=4&quality=100&sign=b7009cdf&sv=2) 1. Select a Pool. I wil proceed with SOL/USDC ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FeygZFtOGBA6QD6VkpNFe%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252022.38.49.png%3Falt%3Dmedia%26token%3Ddf8971a4-3c4a-4050-a8b5-8c9b8674278d&width=768&dpr=4&quality=100&sign=174e70fc&sv=2) 1. Deposit collateral in any token you prefer. The protocol will automatically perform a swap to match the required deposit ratio, so this only affects the swap amount, not the position itself. You can also deposit both tokens simultaneously, especially if you choose to "Disable swap". In this example, I used 100 USDC. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F6taxSFPUA5z7u7QK1snb%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252022.54.39.png%3Falt%3Dmedia%26token%3D8ae46747-1155-4b53-8be6-89f18ac07e3e&width=768&dpr=4&quality=100&sign=a94942b&sv=2) 1. Choose your leverage: How much do I want to amplify my liquidity position? Higher leverage means more liquidity added and potentially more fees earned. I set leverage to 3x, which means $200 will be borrowed and added to my $100, making my total position $300. This allows me to earn up to 3x more fees compared to farming with just my initial $100. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FrALokmNQWbLLCftfmMAn%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.02.01.png%3Falt%3Dmedia%26token%3Daa544885-1c44-463d-a48e-58fc226eedfe&width=768&dpr=4&quality=100&sign=fa224c65&sv=2) 1. Select which tokens to borrow to increase your position — this is called the borrow ratio. By default, it’s set to 50/50, meaning the debt is evenly split between SOL and USDC. This ratio determines your [directional exposure](https://docs.defituna.com/defituna-introduction/onboarding/setting-up-a-directional-bias) (represented by the red arrow) and allows you to create "[Short](https://docs.defituna.com/learn-more/how-to-open-different-strategies/short-farming) ", "[Long](https://docs.defituna.com/learn-more/how-to-open-different-strategies/long-farming) ", or "[Neutral](https://docs.defituna.com/learn-more/how-to-open-different-strategies/neutral-farming) " positions based on your market outlook: * If I expect SOL to rise, I borrow more USDC to benefit from SOL's appreciation. * If I expect SOL to fall, I borrow more SOL, so I can buy it back cheaper later and profit from the drop. * If I expect SOL to remain stable, I borrow both tokens equally. Important: "Short" and "Neutral" strategies are not effective with low leverage (below 2x). In this example, borrowing USDC at a 75/25 ratio gives me a "Semi-Long" exposure. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FdwejA3zAoMSC8Y7iTC0c%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.07.24.png%3Falt%3Dmedia%26token%3Db44f5353-4e4e-4716-991b-a89100ce7311&width=768&dpr=4&quality=100&sign=1774cb6f&sv=2) 1. Select Range: Define your lower and upper price limits, similar to how it's done on platforms like Orca, Raydium, or Meteora. * Narrow ranges can earn higher fees but require more frequent rebalancing. * Wider ranges generate lower fees but need less maintenance. Note: If the price moves outside your selected range, your position will no longer earn fees and may be exposed to greater [impermanent loss](https://docs.defituna.com/learn-more/understanding-pseudo-delta-neutral) . ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FmaL2r2lorHGmqOw8X81t%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.16.53.png%3Falt%3Dmedia%26token%3D39dc6179-0e40-41cd-89eb-b3b7aad30696&width=768&dpr=4&quality=100&sign=571276c3&sv=2) 1. Consider your liquidation carefully: If your liquidation price is set too far from the current price, you may lose capital efficiency. If it’s too close, or worse, within your range, it becomes risky. * Borrowing a single token (e.g., a 100/0 ratio) results in one liquidation point. * Borrowing both tokens creates two separate liquidation points: one for each borrowed asset. Your borrow ratio, leverage, and price range all directly influence where these liquidation points are placed. Adjust them thoughtfully to balance risk and efficiency. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FllVFXKYmot0qGtuD4Rlu%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.20.37.png%3Falt%3Dmedia%26token%3D5b7436a3-3612-4121-bbb0-3d594cfbe191&width=768&dpr=4&quality=100&sign=2dd87153&sv=2) 1. Define your [limit orders](https://docs.defituna.com/defituna-introduction/platform-info/take-profit-stop-loss) and swap preferences. In this example, I’m setting limit orders at the range bounds and choosing to swap to USDC for both orders. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FFWP3pjbhmkbhBbI1XwpB%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.26.12.png%3Falt%3Dmedia%26token%3D4fb64bfb-3374-40a3-a557-18902af7559c&width=768&dpr=4&quality=100&sign=dc15f55f&sv=2) 1. You have the option to enable [auto-compounding](https://docs.defituna.com/defituna-introduction/platform-info/compound) . In this example, I’ll auto-compound my yield and "keep leverage". ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FdYRQ6J7IU9lQeLTrxTSI%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.32.49.png%3Falt%3Dmedia%26token%3D102df259-7853-4c8e-8d45-206e9afb4bb9&width=768&dpr=4&quality=100&sign=f1376669&sv=2) 1. Once everything is set, click the 'Create Position' button to finalize your setup. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FIG76G56QtNYiNZElR7zL%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.41.13.png%3Falt%3Dmedia%26token%3Dba10bd68-0ed5-4cd0-9025-39fe8e70261f&width=768&dpr=4&quality=100&sign=9082063e&sv=2) 1. In the confirmation window, you’ll see the swap amount along with all your selected parameters. Review everything carefully, then click "Start Farm'" to confirm the transaction in your wallet. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FQQwbN2Q5PZFAtCVF6g4z%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.44.02.png%3Falt%3Dmedia%26token%3D7350ee42-9061-4ff6-a336-d877a10c57fe&width=768&dpr=4&quality=100&sign=198b6644&sv=2) 1. If the transaction is successful, your position will appear under "Opened Positions". Take note of the available settings, which allow you to [monitor your position](https://docs.defituna.com/defituna-introduction/onboarding/monitoring-opened-positions) and toggle between token amounts and token values. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FJi3opJGepm8WcW8mWb9g%252FCapture%2520d%25E2%2580%2599e%25CC%2581cran%25202025-07-07%2520a%25CC%2580%252023.48.44.png%3Falt%3Dmedia%26token%3D3de9447a-2082-4964-a4fe-4c76a0a1ba86&width=768&dpr=4&quality=100&sign=99005595&sv=2) Last updated 1 month ago --- # Understanding Pseudo Delta Neutral | DefiTuna **Introduction** Pseudo Delta Neutral (PDN) Liquidity Provisioning (LP) is a technique to initially take no ‘price’ exposure to a specific token while still providing liquidity and earning ‘yield’ from providing liquidity on a Decentralized Exchange (DEX). **TLDR** Max profit on PDN LP strategies occur when the SOL price is exactly at the price we entered our position. As long as the expected yield earned from trading fees is greater than the borrow rate for our leverage/debt, we expect positive profits at or near that starting price. However, profits can become losses when the price of SOL moves away from our starting price, especially when it does so quickly, before we have had time to earn yield from fees on our LP position. No yield is free of risk. **Introduction** Delta is a common risk metric when valuing options within finance. Delta refers to the price change of the option when the price of the underlying asset changes by 1 dollar. For example, when an option on the S&P 500 has a 0.5 delta, when the S&P 500 goes up (down) by 1 dollar, the option price will go up (down) by roughly, but not exactly, 50 cents. The reason we call this ‘pseudo’ delta neutral, is because when providing liquidity (just like options!) delta will change as the price changes (this is called ‘gamma’). As you will see in the stylized example below, the only time the delta is truly neutral (0 delta=0 price exposure), is when the price of the liquidity pool is the same price as when you entered the position. Said another way, the only time you will not have price exposure to the risky asset is when the risky asset’s price is the same as when you entered the position. Also, an extremely important point is…. The price of max profit for your position is also the same price as when you entered the position. For a detailed description of PDN, see [this article](https://marco112358.medium.com/leveraged-yield-farming-can-it-be-delta-neutral-152afb9aea5e) . This article goes through PDN on a Constant Product AMM (CPMM), not a Concentrated Liquidity AMM (CLMM/CLAMM) like the example below, but the logic is similar. For a primer on CLAMM Versus CPMM look [here](https://marco112358.medium.com/concentrated-liquidity-versus-constant-product-clmm-versus-cpmm-423c188eb243) . **Example Setup** Let’s go through a stylized example of a PDN LP position and see our expected profit/loss, risky token exposure, and empirical delta and gamma. We set up a position when the price of SOL is 200 USDC. We start with 100 USDC and no SOL as our equity position, so our initial equity is 100 USDC. We take a 3x levered position, so we borrow 2x our initial 100 USDC, for a total borrow of 200 USDC and total position size of 300 USDC. We borrow 0.75 SOL (150 USDC worth of SOL) and 50 USDC. We then LP that 0.75 SOL (150 USDC worth of SOL) and 150 USDC. We are using a CLAMM like Orca or Raydium. We set our upper and lower bounds to roughly 5% above and below the starting 200 price. The lower bound is roughly 190.5 and the upper bound is 210. We also need to make assumptions on the borrow rate of our debt and the expected yield earned from LPing on the CLAMM. We assume a 40% APY borrow rate that translates to 0.0922% Daily borrow rate and 1.8% daily yield from LPing in our chosen band. Note it's important that the expected yield from fees/LPing is greater than the expected borrow rate, or you can have negative returns on a PDN LP strategy. We simulate what the position will look like at SOL prices of 180 to 220, or -10% to +10% from the starting 200 price. Finally, we look at holding this position for 1 day and 7 days. ### [](https://docs.defituna.com/learn-more/understanding-pseudo-delta-neutral#profit-loss-pnl) Profit/Loss (PnL) Below is a graph of the PnL as a % on the y-axis versus the % change in SOL price on the x-axis. We see all 3 graphs peak at the SOL=200 point. However, we see that as time passes, our max profits increase, our losses at the -10% and +10% disappear, and our breakeven points (SOL % change that we make no money but also lose no money) widen from the 0% change point. There is also a graph showing what your PnL would be if you just bought 100 USDC worth of SOL (0.5 SOL tokens) instead of LPing (the blue line). When we hold for 1 day, our breakeven is close to +/- 5.5-6%, at 7 days the breakeven is beyond the +/- 10% we are showing here. Focusing on the 7 day data, when the SOL price is 200, we earn 38.6% on our equity, or 38.6 USDC on the 100 USDC starting equity position. However, when the price is 190, we only earn 33%, and when the price is 210, we only earn 35%. This is why some people call this a ‘short volatility’, ‘short gamma’ or crab strategy. This strategy performs well when the price oscillates around the starting price (we need trading to occur to earn fees, but we also don’t want the price to move too much or we lose money due to the convexity of LPing). ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FryNJKwg7h7h7JUAatLqd%252FPnl1%2520%282%29.png%3Falt%3Dmedia%26token%3D69d22563-9c47-4791-a655-6079d35adf55&width=768&dpr=4&quality=100&sign=c2f16610&sv=2) SOL Price SOL Tokens SOL Value USDC Tokens USDC Value TV Initial SOL Debt Tokens Initial USDC Debt Tokens Initial SOL Debt Value Initial USDC Debt Value Initial Total Debt Value Equity Value No Fees/Yield TV with Trading Yield Total Debt with Interest Simplified Equity Value Net SOL Tokens Equity Return HODL Equity HODL Return Net Empirical Delta Net Empirical Gamma 180 1.52 273.33 0 0 273.33 0.75 0.75 50 135 185 88.33 309.69 185.65 124.04 0.77 24.04 180 \-10 0.97 0 185 1.52 280.93 0 0 280.93 0.75 0.75 50 138.75 188.75 92.18 318.29 189.41 128.88 0.77 28.88 185 \-7.5 0.97 0 190 1.52 288.52 0 0 288.52 0.75 0.75 50 142.5 192.5 96.02 326.9 193.17 133.72 0.77 33.72 190 \-5 0.97 0 195 1.15 223.56 71.71 71.71 295.27 0.75 0.75 50 146.25 196.25 99.02 334.54 196.94 137.6 0.4 37.6 195 \-2.5 0.55 \-0.09 200 0.75 150 150 150 300 0.75 0.75 50 150 200 100.0 339.9 200.7 139.2 0 39.2 200 0 0.1 \-0.09 205 0.37 75.47 227.32 227.32 302.79 0.75 0.75 50 153.75 203.75 99.04 343.06 204.46 138.6 \-0.38 38.6 205 2.5 \-0.34 \-0.08 210 0 0 303.7 303.7 303.7 0.75 0.75 50 157.5 207.5 96.2 344.1 208.23 135.87 \-0.75 35.87 210 5 \-0.75 \-0.04 Also below we can see the same graph and table if the borrow rate is 20% not 40%. We can see that the max profit increases, as well as the breakevens widen. When we hold for 1 day, our breakeven is close to +/- 1.55%, at 7 days the breakeven is closer to +/-4.5-4.75%, and at 30 days the breakeven is closer to 11-12%. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FrA0ziJY7wnkSfvCG6SOe%252FPnl2%2520%282%29.png%3Falt%3Dmedia%26token%3De33e0a55-511f-43b3-b4ca-43ebfedee2bb&width=768&dpr=4&quality=100&sign=8a5308ac&sv=2) SOL Price SOL Token SOL Value USDC Token USDC Value Total Value Initial SOL Debt Tokens Initial USDC Debt Tokens Initial SOL Debt Value Initial USDC Debt Value Initial Total Debt Value Equity Value No Fees/Yield Total Value with Trading Yield Total Debt with Interest Simplified Equity Value Net SOL Tokens Equity Return 0.5 SOL HODL Equity 0.5 SOL HODL Return Net Empirical Delta Net Empirical Gamma 180 1.52 273.33 0 0 273.33 0.75 0.75 50 135 185 88.33 309.69 186.2 123.49 0.77 23.49 90 \-10 0.97 0 185 1.52 280.93 0 0 280.93 0.75 0.75 50 138.75 188.75 92.18 318.29 189.97 128.32 0.77 28.32 92.5 \-7.5 0.97 0 190 1.52 288.52 0 0 288.52 0.75 0.75 50 142.5 192.5 96.02 326.9 193.75 133.15 0.77 33.15 95 \-5 0.97 0 195 1.15 223.56 71.71 71.71 295.27 0.75 0.75 50 146.25 196.25 99.02 334.54 197.52 137.02 0.4 37.02 97.5 \-2.5 0.54 \-0.09 200 0.75 150 150 150 300 0.75 0.75 50 150 200 100.0 339.9 201.29 138.6 0 38.61 100 0 0.1 \-0.09 205 0.37 75.47 227.32 227.32 302.79 0.75 0.75 50 153.75 203.75 99.04 343.06 205.07 138.0 \-0.38 38.6 102.5 2.5 \-0.34 \-0.08 210 0 0 303.7 303.7 303.7 0.75 0.75 50 157.5 207.5 96.2 344.1 208.84 135.26 \-0.75 35.87 105 5 \-0.75 \-0.04 **Net SOL Position** Next we can see what our net SOL token position is at different price points. Remember we borrowed 0.75 SOL in debt (a liability). We immediately used that SOL as part of our LP (an asset). So our initial equity/token exposure (asset – liability) for SOL is 0, which we can see on the graph below. This graph shows our total SOL token exposure on the y-axis and the % change in SOL price on the x-axis. As the price moves below 200, we start to have positive token exposure to SOL. This is because in a CLAMM, as the price moves towards the lower bound of your chosen range, you get more exposure to the asset losing in price (SOL in this case) and less token exposure to the asset gaining in price (USDC in this case). And when the price moves towards the upper bound, the opposite occurs. However, we always have 0.75 SOL Debt (negative SOL position). So as the price moves below 200, we actually start to have positive SOL token exposure (our LP increases in SOL but our short SOL continues to be static). And when the price moves up, we start to have negative SOL token exposure (our LP decreases in SOL while our short SOL continues to be static). Once we hit our lower bound, our positive SOL token exposure flatlines (at 0.77) because our LP is out of range and is statically 100% SOL. And once we hit our upper bound, our negative SOL token exposure flatlines (at -0.75) because our LP is out of range and is 100% USDC. You can see a couple examples in the table above, in the ‘Net SOL Tokens’ column. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FrhAuo4oqsbp3rOgq2nYY%252FNetTokens%2520%281%29.png%3Falt%3Dmedia%26token%3Daa45593a-2d57-45e7-947e-a6a320af0d41&width=768&dpr=4&quality=100&sign=9286cd77&sv=2) **Empirical Dollar Delta** We can also look at our dollar delta (empirically derived). This graph shows how an increase in SOL price of 1 USDC affects our equity position. This dollar change in equity position for 1 USDC change is SOL price is on the y-axis and the % change in SOL price on the x-axis. The reason this graph looks extremely similar to the one above is because our delta is positive when we have SOL token exposure over 0 (i.e. our position is positively exposed to the price of the SOL token, so SOL price increasing is good for our position). The opposite can be said when the price of SOL is above our 200 starting point. In this range (when price above 200), we have negative SOL exposure (our debt in SOL is greater than the SOL in our LP, so we are net short SOL). So when the price of SOL goes up, our debt goes up more than our asset value. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252FAq30LH91PgVG9PnWduRY%252FDelta%2520%282%29.png%3Falt%3Dmedia%26token%3D38f32144-3875-496a-8139-edf29a833586&width=768&dpr=4&quality=100&sign=3cd83231&sv=2) **Empirical Dollar Gamma** Our last graph shows how our dollar delta changes with the change in SOL price. This dollar change in dollar delta position for 1 USDC change is SOL price is on the y-axis and the % change in SOL price on the x-axis. This graph looks like an upside down “U” because we don’t have any change in dollar delta when we are outside of our range. Said another way, when our SOL token exposure is static (either positive or negative), we don’t have any change in the delta, so gamma is 0. When the SOL price is inside of the range, our dollar gamma is negative because our dollar delta has a decreasing slope. What this means is, we get more long SOL as the SOL price goes down, and we get more short SOL as the SOL price goes up. This ‘negative convexity’ is the opposite of what you want in trending markets. However, no convexity is free. We are compensated for taking on this ‘negative convexity’ risk through the trading fees we earn. This is very similar to a short straddle position in options (short a call and short a put at the same strike price). That short straddle option position also has negative gamma, and you earn ‘option premium’ if the underlying asset expires at/near that strike price. ![](https://docs.defituna.com/~gitbook/image?url=https%3A%2F%2F3069727834-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FMyF9WLf9iWl1sLBOWmVE%252Fuploads%252F8B5XBGQ5kdbhZ2rthtKo%252FGamma%2520%282%29.png%3Falt%3Dmedia%26token%3Dc94a0076-010f-420a-9cc2-04866b57ba39&width=768&dpr=4&quality=100&sign=26a0b921&sv=2) **Summary** We have seen that our max profit on this stylized PDN LP example is when the SOL price is exactly at the price we entered our position. As long as the expected yield earned from trading fees is greater than the borrow rate for our leverage/debt, we expect positive profits at or near that starting price. Our breakeven SOL prices widen and our profits increase as time goes on, more trades occur, and especially when price oscillates near the starting price. We are taking on a short volatility, short gamma, crab strategy position with this trade. We are short convexity with positive expected yield. But yield does not equal total returns. We need to account for the fact that the assets underlying our LP position change as the price of SOL relative to USDC changes! Once we have all the facts, we can see the shape of our total expected returns and how they increase over time. Written by Marco\_112358 Last updated 7 months ago ---