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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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Borrow and Multiply SDK Methods

Multiply operations use MultiplyObligation. Standard borrow operations use VanillaObligation. The obligation type determines which PDA is derived for your position.

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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.

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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

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

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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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

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.