SHEAVE
What the machine actually does
A block and tackle never reduces the load. It divides the load between more parts of line, so each part carries less and you pull further to move it the same distance. Leverage on-chain works the same way, and costs the same way.
One pass of the rope
You hold USDG. SHEAVE swaps it for the stock token, deposits that as collateral in the Morpho market, borrows USDG back against it, swaps that too, and deposits again. Each round trip is one part of line. At the end you own more of the stock token than your capital bought, and you owe the difference.
The whole thing is one transaction. It either completes or it reverts and you keep your USDG — there is no half-open position, and nothing is left sitting in an intermediate contract, because the last two calls in every bundle sweep both tokens back to your wallet.
The ladder
Each pass borrows 57.5% of what the previous pass deposited — 92% of the 62.5% the market allows, so the position does not open already touching its own limit. That decay is why the fifth part of line is nearly the last useful one.
| Parts | Exposure | Added by this part | Borrowed | Loan to value | Safety factor | Calls in bundle |
|---|---|---|---|---|---|---|
| 1× | 1.575× | +0.575× | 0.575× | 36.5% | 1.71× | 10 |
| 2× | 1.906× | +0.331× | 0.906× | 47.5% | 1.32× | 14 |
| 3× | 2.096× | +0.190× | 1.096× | 52.3% | 1.20× | 18 |
| 4× | 2.205× | +0.109× | 1.205× | 54.6% | 1.14× | 22 |
| 5× | 2.268× | +0.063× | 1.268× | 55.9% | 1.12× | 26 |
Safety factor is how far the position sits from liquidation: 1.12× means the collateral can lose 10.6% of its value before the market can take it. Read load limits for what actually moves that number on a weekend.
Three steps, and only one of them is a transaction that moves money
Approve. A standard ERC-20 approval so Morpho's adapter can move the USDG you are deploying. It moves nothing by itself.
Sign. Morpho needs your signed permission before anything can borrow on your behalf. This is a signature, not a transaction: no gas, nothing on-chain, and it travels inside the bundle rather than being sent separately.
Reeve. The one transaction. Before the button turns green the exact bundle — the same bytes, not an approximation — is run through eth_call against the current block. If it would revert, the button does not light up and you are told why in words. It is re-simulated before every signature and on every thirty-second refresh.
Whose contracts hold what
SHEAVE has deployed nothing. Your collateral and your debt are positions inside Morpho Blue, owned by your address. The swaps go through Uniswap's SwapRouter02. The calls are assembled by Morpho's own Bundler3 and GeneralAdapter1. This page builds the call data and hands it to your wallet; it cannot move your funds, and it could go offline without touching your position. Every address is listed on addresses.