Everyone's bullish. Everyone wants leverage.
MUX v3 has revamped its tranches.
> Junior Tranches give you 2.5x on LP positions
> Senior Tranches stack borrow fees + base yield
When markets pump, borrowing explodes.
When borrowing explodes, lenders print.
🧵
1/ First, understand tranches: They split yield sources into different risk levels.
> Senior Tranche = Low risk, steady returns
> Junior Tranche = High risk, amplified returns
MUX v3 built this on Morpho's infrastructure. Capital efficiency reimagined.
2/ The Senior Tranche is your boring money printer:
• Deposit sUSDe (already earning 10%)
• Lend to Junior tranches
• Stack borrowing interest from Junior tranches on top
• Zero directional market exposure
It's like being the bank. You lend, they borrow, you profit.
3/ Junior Tranches are where degens feast:
• Borrow from Senior Tranche
• Leverage MUX3LP positions up to 2.5x
• Auto-looping handles the complexity
• One tranche per pool = precise risk control
Want 2.5x leverage on ETH LP? There's a tranche for that.
4/ Built on @MorphoLabs infrastructure
Why it matters:
• Isolated risk per market (one pool blows up, others untouched)
• Interest accrues in real-time (no manual harvesting)
When you leverage on solid infrastructure, you leverage better.
5/ Putting it Together
1. Senior Tranche deposits sUSDe
2. Junior Tranche borrows it, then uses leverage to amplify MUX3LP positions
3. Junior pays interest back to Senior
Senior gets: Base sUSDe yield (~10% APY) + borrowing fees
Junior gets: Up to 2.5x leveraged LP returns
6/ Why this beats everything else:
Other perps force artificial 50/50 long-short balance. Caps utilization at 50% per direction. Requires rebalancing two assets constantly.
MUX lets the market decide the balance.
Natural exposure, not engineered constraints.
7/ The result: Pure capital efficiency.
• Single asset, single direction pools
• 100% utilization possible (not capped at 50%)
• LPs hedge with surgical precision
• Target exact assets, exact pools, exact directions
8/ Bottom line: Tranches turn lazy capital into productive capital.
Senior users get free money on their free money.
Junior users get institutional-grade leverage tools.
Most protocols make you choose: safety or returns.
MUX v3 says pick your weapon.
Both sides print.
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