PinkPea Finance provides an automatic Infinite Looper and one-click repayment function for leverage users. We set two moving price triggers that follow the market, one for borrowing and the other for repaying. Users can create a moving range that automatically prevents liquidation. But also automatically takes advantage of price increases. PinkPea maintains internal bots that adjust the moving range according to market conditions, creating an infinite set-and-forget loop.
PinkPea will execute liquidation orders when the debt ratio exceeds the set threshold.
Scenario A: if users DO NOT choose to use Infinite Looper Suppose Bob stakes Token1 with a value of 100 USD and applies 2X leverage to borrow Token2 with a value of 100 USD, then Bob's final position will be 200 USD.
Bob’s debt ratio will be 50%.
Suppose the liquidation threshold of this Pool (Token1/Token2) is 80%, then liquidation occurs when the value of Token1/Token2 goes below 61%.
Scenario B: if users choose Infinite Looper There are three parameters in PinkPea's Infinite Looper.
Infinite Looper = (LL，NL，RL)
LL = Left Leverage
NL is the user's default initial leverage, displayed on the PinkPea webpage. If Bob sets the Infinite Looper to (LL=1.5, NL=2, RL=2.5), the system automatically adjusts the leverage range according to market conditions.
- 1.When the value of Token1/Token2 decreases, the debt ratio and leverage will increase. Once the leveraged position reaches the RL (2.5X) trigger, the system will withdraw liquidity and repay part of the debt to maintain a healthy debt ratio and return the leverage to NL (2X).
- 2.When the value of Token1/Token2 increases, the debt ratio and the leverage will decrease. Once the leveraged position reaches the LL (1.5X) trigger, the system will borrow more to return the leverage to NL (2X).