As one of the main mechanisms of Fuji V2 Himalaya is bundling multiple actions in a single transaction, a user can be offered a feature to leverage in one click. Behind the scenes, there would be several deposits, borrows, and swaps performed to achieve the level of leverage wanted.
A user wants to go 2x-long ETH so that if the price of ETH goes 1$ up, the user’s gain would be 2$. Assuming 1 ETH = $1000 and a target loan-to-value of 65%, they can achieve this by:
a) providing 1 ETH and borrowing 650 USDC
b) swap the borrowed 650 USDC for 0.65 ETH
c) deposit back 0.65 ETH and borrow 422 USDC (650 * 0.65) again
d) swap the borrowed 422 USDC for 0.42 ETH and deposit it back
Their final position is → Supply: 2.07 ETH and Borrow: 1077 USDC. The user got to ~2x leverage but would have to execute at least seven transactions.
With Fuji, this whole operation would be possible in a single transaction. There are many other protocols proposing this feature. However, the added value of Himalaya would be the optimization of the borrowing cost. The user position will automatically benefit from it (see the point about the Interest rate optimization above).