What is Leveraged Yield Farming?

Yield farming is a process in which users (or farmers) receive additional incentives (typically in the form of another token) for providing liquidity to a liquidity pool on a certain AMM protocol, such as Uniswap V2 (ETH), Sushiswap (ETH), TraderJoe (AVAX), etc.
For instance, if you were to provide liquidity of 1 ETH and 2,600 USDC (assuming 1 ETH = 2,600 USDC) to a ETH/USDC liquidity pool on Uniswap V2, then you will receive rewards in another token (e.g. 10 Token A) in addition to a share of trading fees that the protocol gains (e.g. 10% APY), which you would normally receive for being a liquidity provider on any AMM.
Leveraged yield farming is a concept innovated by Alpha Venture DAO (Previously Alpha Finance Lab) that allows farmers to lever up their yield farming position by borrowing external liquidity to add on their yield farming position. This results in users earning higher APY exceeding the limit set by DEX protocols. By taking on leverage, Homora would borrow the specified assets on behalf of the users to yield farm.
This will give them a bigger position at the end. As a result of having more liquidity to yield farm, leveraged yield farmers gain more rewards in Token A and a larger share of the trading fees than before. (e.g. Referring to the original position of 1 ETH and 2,600 USDC in ETH/USDC pool, a user can borrow 2 more ETH, adding up to 3 ETH and borrow 5,200 USDC, adding up to 7,800 USDC.)