Leverage
Monarch supports leveraged Morpho positions through a single action flow when a supported route is available.
Today there are two route types:
- Swap route — for general collateral / loan token pairs
- ERC4626 route — for vault-share collateral where the vault underlying asset matches the market loan asset
The frontend also supports the reverse unwind flow with deleverage.
How route selection works
When leverage is opened, Monarch checks route availability for the market:
- if the collateral token is an ERC4626 vault share token and its underlying asset equals the market loan token, Monarch can use the deterministic ERC4626 route
- otherwise, Monarch uses the swap-backed route when Bundler3 routing is available on that chain
Fees
The current leverage fee configured in the frontend is:
- 0.0075% (0.75 bps)
- capped at $5 per transaction when the USD ceiling can be applied
The preview shown in the app is the source of truth for the actual transaction you are about to sign.