In DeFi, you're told you can't have it all: 🌱 High LP yields šŸ“ˆ Full (or even leveraged) exposure to your favorite token 🚫 No Impermanent Loss But what if you actually could? Here’s how to supercharge your LP strategy using @peapodsfinance and rewrite the rules 🧵
1/ Let’s start with the problem: LP farming can be one of DeFi’s most profitable strategies… but it comes with 2 big issues: 1ļøāƒ£ You need to split your capital between two assets 2ļøāƒ£ You suffer from Impermanent Loss Let’s break it down šŸ‘‡
2/ Say you want to LP in ETH-USDC with $5K of $ETH. You’ll need to sell half into $USDC. You end up with: → $2.5K ETH + $2.5K USDC → LP position worth $5K Congrats, you’ve now cut your ETH exposure in half. ā˜¹ļø
3/ Now let’s say ETH pumps. šŸš€ To maintain a 50/50 ratio, your LP auto-sells ETH into USDC. So even the ETH you didn’t sell is slowly sold off. Result? You earn yield from the LP positions but miss out on the gains you would’ve had by just holding ETH.
4/ Impermanent Loss (IL) = your LP position is worth less than if you simply held ETH. In a bull market, this can wipe out any yield you earned from fees as ETH might have appreciated more than the yield you earn. In such a case, just holding ETH would’ve been more profitable.
5/ But what if you could fix that? āœ… Keep full ETH exposure āœ… Earn 2x+ LP yield āœ… Avoid Impermanent Loss entirely? Well... you can with @PeapodsFinance Leveraged Volatility Farming (LVF) mechanism!
6/ With Peapods, you can LP at 2x leverage, w/o selling your ETH - all while earning 'volatility yield' on top! Example: 1ļøāƒ£ You have $5K ETH 2ļøāƒ£ Borrow $5K USDC 3ļøāƒ£ LP with $10K total Result: āœ… Still hold $5K ETH exposure āœ… Farming yield on 2x capital, w/o selling a single ETH
7/ But we can go even further… To reduce Impermanent Loss to near-zero, increase your ETH exposure using 2.33x leverage: 1ļøāƒ£ Start with $5K ETH 2ļøāƒ£ Borrow $6.65K USDC → $5K USDC goes to LP → Swap $1.65K USDC for ETH → Add $3.3K (50% ETH, 50% LVF-borrowed USDC) into LP 3ļøāƒ£ LP with $13.3K total
8/ šŸ’” Why does this matter? Your LP now contains more ETH than you started with. So even if ETH pumps and your LP auto-sells some ETH, you’re still left with more ETH than you began with. This drastically reduces Impermanent Loss or 100% eliminates it with management 🤯 ā¬‡ļø
9/ And here’s where it gets powerful: As ETH pumps, your LP position becomes healthier (higher collateral value). You can then: → Borrow more USDC ⤷ Buy more ETH ⤷ Re-LP it You maintain or increase your ETH exposure while compounding LP + volatility yield. Goodbye, IL🧠
10/ Let’s compare outcomes between a traditional LP strategy vs Peapods LVF with an initial $5K capital šŸ‘‡
11/ AND that is how you LP without compromise on @PeapodsFinance āœ… Keep full exposure to your bullish token āœ… Earn boosted LP yields at 2x–2.33x leverage āœ… Eliminate or minimize Impermanent Loss Farm smarter and harder with Peapods. 🌾
12/ And it’s not just for $ETH. On Peapods, you can LVF any token you’re bullish on – up to 2.33x. Borrow assets like: $USDC, $WETH, $OHM, $S, $BERA and soon, $PEAS. You choose the token. @PeapodsFinance gives you the tools to earn with it.
13/🚨 Risks to keep in mind: Though liquidation-resilient 'Soft Leverage', this is still leverage @ 2x: liquidation at ~66% token drawdown @ 2.33x: liquidation at ~50% It’s powerful, but with great power comes great responsibility So always monitor your position + manage risk
14/ END āœ… The best LP yields. āœ… The smartest farming strategies. āœ… Fully permissionless. Only on @PeapodsFinance. Try it šŸ‘‰ Disclaimer: This is not financial advice, always do your own research and manage risk appropriately.
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