Auto-collateralize

Auto-collateralize takes a position's earnings and adds them as collateral to your lending account, raising your health factor instead of withdrawing the money.

The flow

1. Your position earns fees.
2. The strategy converts them to a collateral asset.
3. It supplies them to your lending account — your collateral grows, your health factor rises, and your liquidation buffer thickens.

Why it exists

It is the mirror of Auto-repay: instead of shrinking the debt, it grows the collateral. Both defend the health factor; they differ in what they do with the position's earnings.

Pricing

Auto-collateralize runs at 0.05% of rewards (see Fees).

Set it up

In /strategies → Create automation, choose Auto-collateralize, link the position and the lending account, and it keeps feeding collateral in while conditions are met.