What “leverage” means in Varla
Leverage is a loop: you deposit prediction market positions as collateral, borrow the chain’s collateral token, then use the borrowed funds to take more exposure (or deploy elsewhere).
Varla does not enforce how you redeploy borrowed funds. You can buy more positions (increase exposure), provide liquidity elsewhere, or bridge/transfer (subject to your wallet + chain constraints).
Polygon (Polymarket): USDC
BSC (Opinion): USDT
How it works (high level)
Deposit collateral
Deposit prediction market positions as collateral (ERC1155).
Borrow stablecoins
Borrow USDC/USDT up to your limit.
Redeploy borrowed funds
Buy more positions, hedge, LP, bridge, etc. Varla doesn’t enforce this step.
Repeat (optional)
If you re-deposit more positions acquired with borrowed funds, you’re increasing exposure.
Manage HF
Keep buffer. If HF drops below 1.0, liquidation can happen.
The two risks that matter
The two key risks are liquidation risk (if health factor drops below 1.0, collateral can be seized) and rate risk (borrow rates vary with pool utilization).
What to monitor
Monitor your health factor (your liquidation buffer), utilization/borrow rate (your ongoing cost), and oracle status (if a collateral price becomes unavailable, borrow power can drop to 0 for that position).
Chain differences
On Polygon (Polymarket) leverage uses USDC. On BSC (Opinion) leverage uses USDT.
Practical tip
If you leverage, keep buffer. Don’t borrow to the maximum.
Also note:
You can’t repay immediately after borrowing (there’s a 1-minute repay delay), and withdrawals are blocked if they would push HF below 1.0.
