Phantasm Finance allows leveraged long and short positions that are insulated against spikes in lending APR through 88mph's Yield Tokens
You create leveraged long/short positions through doing the following with lending pools 1. Deposit Token X as collateral 2. Take out a stablecoin loan against token X 3. Swap stablecoin for token X 4. Re Collateralize with Token X Repeating this process gives you lots of exposure to token X, allowing you to effectively long it. Doing the reverse will short it. Phantasm then uses 88mph's Yield Tokens, which earn interest based off of the interest rate of their underlying lending pools, and bundles them with these leveraged positions. So that when a spike in pool borrowing rates threatens liquidation, the Yield Tokens increase in the amount of interest they earn proportionally, allowing the end user to cover their position regardless of market conditions, and instead based on the underlying asset. These positions are then represented as ERC721-NFTs which can be traded on open markets.
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