peapods is unlike anything you've seen before
itâs a volatility engine
VOLATILITY (hence the term Volatility Farming) is what drives profit:
- no token emissions
- no ponzinomics
- just price movement = yield
how do they do this?
â podderoonies are fixedâweight wrappers
â every wrap/unwrap charges a fee
â when prices move, arbitrageurs rebalance the pod
â all those fees go to you
thatâs base-level volatility farming (vol farm)
LVF aka "leverage volatility farming" takes it further:
you can borrow the pairing asset from the pod itself to double or even triple your exposure
this means soft leverage with no outside capital + no margin account
an example LVF strategy:
â linn has 0.1 wbtc (~$10k)
â linn wraps it into a wbtc<>usdc podderoonie
â then linn borrows $10k usdc from the pod itself using LVF
â back into the Pod with Linn's wBTC, forming a leveraged LP
â each time the price of wBTC moves, there is an opportunity to arbitrage pwBTC to its fair value, this incurs fees which are used to reward LPs -> sustainably, with ZERO emissions
yield comes from volatility, not emissions but real fees
AND because the podâs own assets back the leverage, the system is self-contained
liquidation only occurs if the pTKN (linnâs LP position) drops ~65% in value
so there's plenty of room to swing
BUT
there's over-leverage and looping too:
- over-leverage = you borrow >2x the value of your pTKN
- up to 33% of pTKN value can be pulled out as the paired asset
- you can use that to buy more of your fav asset
- or loop it back in, borrow again, repeat
now youâre giga long
on ANY token, even ones with no money market
as long as it has a Chainlink/DIA oracle or Uni v3 pool, it's poddable
this means that Protocols can source Liquidity which THEY own by depositing just their native token
no reliance on emissions or mercenary capital
and the best bit? it can even be profitable to source liquidity, which is often one of the largest overheads for a protocol...
$PEAS also benefits from market buys from 60% of all leverage fees eg. Open/Close, Interest and Autocompounding
peapods = volatility primitive Ă liquidity engine Ă soft leverage layer
zero floof just TASTY APY
dc: linn holds $PEAS and @PeapodsFinance sponsor Linnâs Leverage (now with a 7-day free trial, cheaper than a double decaf frappuccino with caramel twist)
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