What is Factor?

Factor is an DeFi strategy protocol that allows users to deposit liquidity that is deployed to various strategies such as automated looping and auto-compounding.

This provides a hands-off experience for less experienced (or more lazy) users with simple on-click solutions.

Factor strategies can be viewed here.

How does Factor work?

Factor currently has automated looping for a variety of Silo markets; notably our PT-LRT and LRT silos.

The looping process works by:

  1. Deposit token on Factor

  2. Factor deposits token on Silo and borrows a bridge token

  3. Bridge token is swapped for the original token and redeposited

  4. Rinse and repeat to desired leverage

This is a super simple way of looping on Silo that only requires a single transaction for Factor users!

What are the risks of using Factor?

With any leveraged position, exposure to profit AND losses are amplified. This may result in losses or even liquidation (loss of all collateral) if the price moves too far in the wrong direction. Users are responsible for maintaining conservative leverage and monitoring their positions.

As usual, interacting with any external contract may introduce additional smart contract risk. It should be noted that Factor has been audited by firms such as PeckShield and Solidity Finance that can be viewed here.

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