Multiply

Multiply abstracts the UZR leverage loop into a single transaction. Instead of executing multiple deposit-borrow-swap cycles manually, users select a target leverage via a slider. The protocol handles the full sequence atomically.

What Multiply Does

The UZR leverage loop is a recursive strategy: deposit bUSD0 as collateral, borrow USD0, swap USD0 for discounted bUSD0 on secondary markets, redeposit, and repeat. Each cycle increases exposure to the bUSD0 discount-to-par convergence.

Manually, this requires multiple transactions, gas costs at each step, and real-time monitoring of intermediate positions. Multiply compresses this into one flow:

1. User deposits bUSD0 collateral

2. User selects a target leverage level via the slider

3. The protocol executes the full loop atomically

4. The interface displays the resulting position (collateral, debt, LTV, health factor) in real time

The slider is the product surface for the underlying loop. It does not change the mechanics — it changes the experience.

Parameters

Multiply operates within the UZR market. All UZR parameters apply:

Parameter	Value
Base rate	0%
Protocol fee	0.10% APR (10 bps)
Collateral	bUSD0 (Bonded USD0)
Loan token	USD0
LTV	88%
Oracle	Fixed 1:1 (USD0/bUSD0)
Chain	Ethereum Mainnet

The 0.10% APR fee accrues continuously on total outstanding debt. The interest rate strategy contract is immutable — the rate cannot be changed, even by the protocol team.

Maximum Leverage

The theoretical maximum leverage depends on the LTV and the bUSD0 market price:

Max leverage = LTV / (Price - LTV) + 1

At 88% LTV, this results in approximately 12.3x maximum leverage on Fira.

Example: 1,000 bUSD0 at ~2x Leverage

Step	Action	Result
1	Deposit 1,000 bUSD0 as collateral	Collateral: 1,000 bUSD0
2	Borrow USD0 at 88% LTV	Borrow: 880 USD0
3	Swap 880 USD0 → bUSD0 at discount (~92.5% of par)	Acquire: ~950 bUSD0
4	Deposit 950 bUSD0 as additional collateral	Collateral: 1,950 bUSD0

Final position: 1,950 bUSD0 collateral, 880 USD0 debt (~2x leverage).

With Multiply, this four-step sequence executes as a single transaction. Selecting a higher leverage level repeats the borrow-swap-redeposit cycle further.

Position Visibility

As users adjust the slider, the interface displays:

• Collateral amount — total bUSD0 deposited (initial + acquired through the loop)

• Borrow amount — total USD0 debt

• Resulting LTV — current loan-to-value ratio

• Health factor — ratio of LLTV to current LTV (always well above 1 on UZR due to the 99.99% liquidation threshold)

These values update in real time as the leverage level changes. Users see the full shape of their position before confirming the transaction.

Profit Mechanism

At maturity, bUSD0 redeems at par (1:1 with USD0). The profit comes from the spread between:

• Collateral value at par — e.g., 1,950 USD0

• Total debt + accrued fees — e.g., ~880 USD0 + 0.10% APR over the holding period

The wider the discount at which bUSD0 trades when the position is opened, the larger the potential spread at maturity.

How It Works (Technical)

Multiply is built on the FiraRouter (FiraRouterV4), which routes each step (deposit, borrow, swap) through dedicated Action contracts. The relevant action module is ActionBorrow, which implements the multi-step borrowing flow:

1. Accepts user collateral (bUSD0)

2. Supplies collateral to the LendingMarket

3. Borrows BT (Bond Tokens) or USD0 on behalf of the user

4. Swaps borrowed tokens for the target output

The router bundles these steps into a single atomic transaction. If any step fails, the entire transaction reverts.

Key Contracts

Contract	Address
UZR Lending Market	0xa428723eE8ffD87088C36121d72100B43F11fb6A
Fixed Rate IRM	0xdfCF197B0B65066183b04B88d50ACDC0C4b01385
USD0/bUSD0 Oracle	0x30Da78355FcEA04D1fa34AF3c318BE203C6F2145
FiraRouterV4	See Contracts & Addresses

Risks

Multiply amplifies both upside and downside. Higher leverage means higher exposure to the following risks:

No Liquidation Before Maturity

UZR uses a fixed 1:1 oracle (bUSD0/USD0) and sets the liquidation threshold (LLTV) at 99.99% — far above the 88% maximum borrow LTV. Since the oracle price never moves, only interest accrual (0.10% APR) changes the LTV. From 88%, reaching 99.99% would take over a century. Positions cannot be liquidated before maturity.

At maturity, the Usual DAO can trigger forced liquidation to close remaining positions and enable collateral redemption. This is an intentional design for a maturity-based system, not a penalty — borrowers should repay or close positions before the maturity date.

Slippage Risk

Each loop iteration involves a USD0 → bUSD0 swap on secondary markets. At high leverage levels, the cumulative swap volume increases. Large swaps may incur price impact, especially in low-liquidity conditions.

Interest Accumulation

The 0.10% APR fee accrues on the total debt, not just the initial borrow. A 5x leveraged position accrues fees on 5x the initial collateral value in debt. Over long durations, this compounds.

One-Way Migration

Positions migrated from Euler (USL) to Fira (UZR) cannot be sent back.

Simulator

The UZR Simulator allows users to model positions before entering them. Test different leverage levels, bUSD0 prices, and holding periods to see how outcomes change.

Open the Simulator