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What is Multiply?

Multiply creates leveraged positions in a single atomic transaction by automating the looping process through flash loans. Instead of manually executing 8-10 separate deposit-borrow-swap cycles, Multiply collapses the entire leverage-building process into one transaction that either succeeds completely or reverts with no state changes.

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SDK vs API: What’s Available

Understanding which operations require the SDK versus the API is critical for building Multiply integrations.
OperationSDKAPINotes
Flash LoansRequiredNot availableAtomic transactions — SDK only
Multiply Deposit (with KSwap)RequiredNot availableLeveraged positions with swap routing — SDK only
Standard Borrow OperationsAvailableAvailableDeposit, borrow, repay, withdraw — both SDK and API
Position DataAvailableAvailableRead obligation data via SDK or API
Market Reserve DataAvailableAvailableAPYs, utilization, liquidity via SDK or API

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Flash Loans

A flash loan is an uncollateralized loan that must be borrowed and fully repaid within the same transaction block. This atomic property makes flash loans risk-free for the protocol.

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Flash Loan Properties

PropertyDescription
Collateral RequiredNone — uncollateralized
Repayment WindowSame transaction block
Failure BehaviorEntire transaction reverts (no state changes)
Fee0.001% per transaction
Risk to ProtocolZero — atomicity guarantees repayment or reversion
If a flash loan cannot be repaid — due to slippage, insufficient liquidity, or any other failure — the entire transaction reverts. No intermediate state is committed to the blockchain.

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Looping: Manual vs Atomic

Looping is the process of repeatedly depositing collateral, borrowing against it, and reinvesting the borrowed funds to amplify exposure. The method determines risk, cost, and execution complexity.

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Comparison Table

AspectManual LoopingAtomic Looping (Multiply)
Transaction Count8-10 separate transactions1 atomic transaction
Price ExposureExposed to price changes between each stepNo exposure — all steps execute atomically
Slippage RiskSlippage on each swap individuallySingle consolidated slippage check
Gas CostsHigher — multiple transactionsLower — single transaction
Execution RiskHigh — any step can fail independentlyLow — all-or-nothing execution
Time to CompleteMinutes (dependent on block confirmations)Single block (~400ms on Solana)
ComplexityRequires manual coordination of stepsFully automated
Manual looping exposes you to market price movements between transactions. If the collateral asset price drops or borrow rates spike mid-loop, you may end up with a worse position than intended — or fail to complete the loop entirely.

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The Multiply Transaction Flow

Multiply executes leverage creation in a precise sequence of steps within a single atomic transaction.
1

Flash Borrow

Protocol borrows the required debt token amount (e.g., SOL) via flash loan. No collateral is required.
2

Swap to Collateral

Flash-borrowed funds are swapped into the target collateral asset (e.g., SOL → JitoSOL) using Kamino Swap (KSwap) with multi-DEX routing for optimal execution.
3

Deposit Collateral

The full collateral amount (user deposit + swapped amount) is deposited into Kamino Lend as collateral.
4

Borrow Against Collateral

With collateral deposited, the protocol borrows the debt token against the collateral position.
5

Repay Flash Loan

Borrowed funds are used to repay the flash loan plus the 0.001% fee.
6

Position Established

Net result: Leveraged position with amplified collateral exposure and outstanding debt balance recorded on Kamino Lend.
All steps execute in a single transaction. If any step fails (slippage exceeds tolerance, insufficient liquidity, etc.), the entire transaction reverts and no position is created.

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Leverage Mathematics

Understanding the relationship between LTV (Loan-to-Value), leverage, and position structure is critical for managing risk.

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Core Formulas

Leverage = Total Collateral Value / Net Equity
Net Equity = Total Collateral Value − Total Debt Value
Max Leverage = 1 / (1 − Max LTV)

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Leverage Examples by LTV

Max LTVMax LeverageTotal CollateralTotal DebtNet Equity
50%2x$2,000$1,000$1,000
75%4x$4,000$3,000$1,000
80%5x$5,000$4,000$1,000
87% (eMode)~7.7x$7,700$6,700$1,000
90% (eMode Jito)10x$10,000$9,000$1,000
All examples assume an initial deposit of $1,000 (Net Equity).

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Worked Example: 8x JitoSOL/SOL Position

MetricValue
Initial Deposit1,000 SOL
Leverage Multiplier8x
Total Collateral Exposure8,000 SOL (as JitoSOL)
Total Debt7,000 SOL
Net Equity1,000 SOL
Current LTV87.5%
Operating at maximum leverage means your Current LTV is very close to the Liquidation LTV threshold. Small adverse moves in collateral price or borrow rates can trigger liquidation. Always maintain a safety buffer.

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eMode (Elevation Mode)

eMode enables significantly higher leverage for correlated asset pairs by raising the maximum permitted LTV ratio.

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How eMode Works

Standard lending markets limit LTV to protect against price divergence between collateral and debt. When both assets are highly correlated (e.g., JitoSOL and SOL), price divergence risk is minimal — both assets move together. eMode reflects this reduced risk by permitting higher LTV ratios.

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eMode Leverage Comparison

ModeAsset PairMax LTVMax LeverageUse Case
StandardSOL / USDC75%4xUncorrelated assets
eMode (Main)mSOL, bSOL, JupSOL / SOL~87%~7.7xCorrelated LST/SOL pairs
eMode (Jito)JitoSOL / SOL90%10xJitoSOL-specific correlation
No eModeJLP / USDC67%~3.2xUncorrelated (JLP is basket of assets)
Higher LTV from eMode means a smaller buffer between your operating LTV and liquidation threshold. Operating near maximum eMode leverage requires continuous monitoring of the yield spread (collateral yield minus borrow rate).

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Why Correlation Matters

Correlated pairs (LST/SOL): When SOL price moves, both JitoSOL and SOL debt move proportionally. Your LTV ratio stays relatively stable regardless of SOL’s USD price. Uncorrelated pairs (JLP/USDC): JLP value fluctuates with crypto markets while USDC stays flat. Price drops in SOL/ETH/BTC directly increase your LTV, creating liquidation risk independent of borrow rates.

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Net APY: The Economics of Leverage

Net APY determines whether a leveraged position is profitable. It captures the amplified yield minus the amplified borrow cost.

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The Formula

Net APY = (Collateral Yield × Leverage) − (Borrow Rate × (Leverage − 1))
Alternatively, using Yield Spread = Collateral Yield − Borrow Rate: 
Net APY = Collateral Yield + (Yield Spread × (Leverage − 1))

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Net APY Examples

MetricValue
Collateral Yield (JitoSOL)7%
Borrow Rate (SOL)6%
Leverage8x
Yield Spread1%
Net APY7% + (1% × 7) = 14%
Result: Positive spread amplified by leverage produces outsized returns.
Borrow rates are variable and adjust based on market utilization. A positive yield spread today can flip negative during high-utilization periods. Monitor the spread continuously — not just the headline APY shown at position open.