# Leveraged ETH/USDC Range Farming on Revert
*A practical walk‑through with real numbers and plain‑English risk talk*

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## TL;DR
- Provide **$10 000 USDC**, borrow another **$10 000 USDC** against the same Uniswap v3 LP NFT on **Revert Lend**, and redeposit it → **2 × liquidity**.
- A **5 %** Uniswap v3 band (2 465 – 2 727 USDC/ETH) has recently yielded **≈78 % fee APR**.
- Borrowing USDC costs **≈12 % APY**.
- Net on 2 × leverage is **≈144 % APR** on *your* capital—provided price stays inside (or breaks upward out of) the range.

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## 1. Strategy in one paragraph

Create a narrow ETH/USDC Uniswap v3 position that straddles spot. Narrow ranges concentrate liquidity, so they earn outsized trading fees. **Revert Lend** lets you post the LP NFT as collateral and borrow USDC. Loop the borrowed funds back into the same range: liquidity (and fee flow) doubles, while you pay interest only on the borrowed half. The wager: fee income > interest cost, and if directionally wrong, an upside break is likelier than a crash.

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## 2. Compact analytical model

| Symbol | Definition | This trade |
| ------ | ---------- | ---------- |
| `C` | Your capital | 10 000 USDC |
| `λ` | Leverage factor (total liquidity / `C`) | 2 |
| `f` | Fee APR on range | 0.78 |
| `r` | Borrow APY on USDC | 0.12 |

**Net APR on equity**

APR = λ  (f - r) + r

*Derivation*: fees on whole position (`λ C f`) minus interest on loan (`(λ − 1) C r`), divided by `C`.

**Plug λ = 2**

APR = 2(0.78 - 0.12) + 0.12 = 1.44 (144%)

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## 3. What 144 % looks like on \$10 k (simple interest)

| Time in pool | Fees | Interest | **Net profit** | **Equity** |
| ------------ | ---- | -------- | -------------- | ---------- |
| 1 month | \$1 300 | \$100 | **\$1 200** | \$11 200 |
| 3 months | 3 900 | 300 | **3 600** | 13 600 |
| 6 months | 7 800 | 600 | **7 200** | 17 200 |

*(Compounding fees back into liquidity would boost these numbers further.)*

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## 4. Price breaks **up** (above 2 727)

At the upper tick the LP becomes **100 % USDC** worth **≈20 246 USDC**.

1. Repay loan: −10 000 USDC
2. Remainder: 10 246 USDC → original 10 k + **≈246 USDC capital gain**
3. All accrued fees are untouched profit.
Divergence loss is irrelevant because both collateral and debt are in USDC.

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## 5. Price breaks **down** (below 2 465)

At the lower tick (2 465 USDC/ETH) the LP flips to 100 % ETH worth ≈19 246 USDC:
• Value drop ≈ 3.8 % on the full pool.
• After repaying the 10 000‑USDC loan your equity is ~9 246 USDC (‑7.5 % before factoring in any accumulated fees).
• Revert Lend liquidation thresholds kick in before the full 3.8 % drawdown, so the realised hit could be larger if you don’t actively de‑leverage.

Fees partially cushion the blow, but a decisive bear move is the core ris

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## 6. Divergence loss vs. loan currency

Your debt is **in USDC**.
* **Upside break** → position converts to USDC, loan is trivially repaid.
* **Downside break** → you hold more ETH, extending liquidation runway.
Divergence loss never imperils debt repayment on the way up and is bounded on the way down.

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## 7. Should you just hold ETH?

| Scenario | Leveraged LP | Raw ETH |
| -------- | ------------ | ------- |
| Range‑bound | ~144 % APR cash yield | 0 % yield |
| Moderate up | Exit in USDC + fees | Full upside |
| Moon‑shot up | Capped after exit | Massive upside |
| Sharp down | ~7 – 8 % hit (liq. risk) | 1 : 1 downside |

Choose the LP for high cash flow in a sideways / mildly bullish tape; choose ETH if you’re chasing moon‑shots.

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## 8. When this trade makes sense

- Expect ETH to spend most of its time **inside 2 465–2 727**.
- If wrong, you think **upward** break > sharp crash.
- You’ll actively monitor borrow rate, utilisation, and health factor.

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## 9. Quick implementation checklist

1. Mint ETH/USDC Uni v3 LP at ±2.5 % around spot.
2. Deposit NFT into **Revert Lend**.
3. Borrow up to 10 k USDC (leave safety buffer).
4. Add borrow to the same range; set *reference value* to **USDC**.
5. Watch utilisation & oracle price; de‑leverage if ETH drifts to the lower tick.
6. Above the upper tick: repay, pocket profits. Below the lower: decide whether to ride ETH or exit.

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## 10. Disclaimer

Numbers float; risk is yours. Nothing here is financial advice—do your own research and size positions responsibly.