"Capital Efficiency" is Just Leverage, Part 1
By
Jason
Garland
May 31, 2022
In many cases “capital efficiency” is synonymous with “leverage”, whether that leverage manifests itself in an amplified risk/return profile, impermanent loss, price risk of a project token, or blowup (solvency) risk. Let’s look at a few examples where “capital efficiency” = “leverage”, and then a few actual cases of capital efficiency without increased risk profiles.