Leverage

A loop pays while the collateral earns more than the debt costs. Rates move, so whether a loop pays is written on the loop rather than decided by moving it: every loop is listed on the Leverage page, the ones that pay today first. Its market page still opens it, and its panel shows what the loop returns in a year at the leverage you choose beside what holding the collateral unlevered would earn.

The same list also carries markets whose collateral and debt are different assets, for as long as they pay at the leverage quoted. Those are price trades as well as carries: the position is long the collateral against the debt, so a fall in that price alone can liquidate it. Each of those rows says what the position is long, and its detail shows how far the price can move against it before it can be liquidated, which at a venue’s own ceiling is often no distance at all. They are markets for borrowing, so they stay listed under Borrow as well, and which of them appear here changes as rates do.

Starting from what you want to be long

The markets table is organised by the pair. Someone levering usually knows the exposure they want before they know where to fund it, so the leverage page asks it that way round. It opens with one chip per collateral asset, each carrying how many markets lever it and the cheapest debt any of them charges, and picking one narrows the table underneath to that asset alone.

Choosing an asset also states what the same exposure costs across the book: the cheapest funding rate, the dearest, how far apart they are, how many chains and venues will take it, the deepest single market, and everything you can borrow against it. It states one more thing the borrowing side has no equivalent for, which is how far the position can actually be pushed.

What happens in the transaction

flash

Borrow the loan token with no collateral, for the length of one transaction. Most lenders charge nothing; Aave v3 charges a premium.

swap

Race every aggregator with a lane on that chain, and take the best fill.

supply

Deposit the bought collateral, alongside yours.

borrow

Draw the loan token against the whole position.

repay

Return the flash loan. If any step short-fills, the whole transaction reverts and you have lost gas, not funds.

What binds the size

The venue's max LTV sets a ceiling, but the swap usually binds first: the leverage you can actually open depends on what the aggregators will fill at your deposit size, and that is resolved per deposit rather than per market. A market page shows the contract limit and says plainly that it is not the openable one.

Where the flash loan comes from

Selected per transaction on engine v3; today one lender per chain. With engine v3 the cheapest lender that holds enough for your size is chosen, and read again from the chain when you sign. Until a chain is switched to engine v3, its helper borrows from the one lender the owner set, and a Morpho market always borrows from Morpho Blue.

The Execution Plan names the lender your transaction would use, its fee in percent and in dollars at your size, what it holds against what you need, and every other lender on the chain with a verdict. The fee shown is read from the chain, not from an app-side copy of it.