9. Practical Examples

Below are five common ways people might use Flow’s isolated, perpetual pools. They’re illustrations only—not financial advice.

1. Long ADA with USDM • Borrow USDM from the ADA/USDM pool using ADA collateral. • Swap the borrowed USDM for more ADA. • If ADA’s price goes up, sell just enough ADA back to USDM to repay the loan and keep the extra ADA—effectively boosting your ADA stack without selling the original coins.

2. Short ADA while holding stables • Deposit USDM into the USDM/ADA pool as collateral. • Borrow ADA and immediately swap it for USDM. • If ADA’s price drops, buy it back at the lower price, repay the loan, and keep the difference—letting you profit from a decline while sitting in stablecoins.

3. Leverage into SNEK • In the ADA/SNEK pool, lock SNEK as collateral. • Borrow ADA and swap it for more SNEK. • Optionally loop the step once or twice (carefully) or wait for SNEK to rise, then repay—growing your SNEK position without new cash. • Bonus step: add part or all of the newly bought SNEK into the same loan as additional collateral; this lifts your Health Factor and pushes the liquidation price lower.

4. Passive ADA yield • Supply ADA to a pool where ADA is the lendable asset (for example, ADA/FLOW). • Hold the fADA you receive; its value climbs as borrowers pay interest, 5-day Cardano staking rewards arrive, and as the pool’s share of the loan-opening fee plus a % of the liquidation fees are credited. • Withdraw whenever you like—earning a higher, hands-off APY than solo ADA staking.

5. Yield spread Arbitrage USDM • In Flow’s USDM/ADA pool, use ADA as collateral to borrow USDM at a fixed 5 – 12 % APR (when utilisation is under 90%). • Move that USDM to Liqwid and supply it there, where it currently earns about 14 % APY. • To close the loop, withdraw the USDM (plus the interest you earned) from Liqwid, use part of it to repay the Flow loan in full, and keep whatever surplus is left.