LpMaxi

LpMaxi

Build a protocol that allows users to farm LPs and tokens using leveraged yield farming strategies. User can go long, short, pseudo-delta neutral on tokens while farming yield on its LPs.


The problem LpMaxi solves

All the protocols need liquidity in form of LPs (liquidity pairs) to grow and facilitate buying and selling of their tokens without high slippage.

To incentivize users to provide liquidity, protocols offer their tokens as rewards with high APR.
But even with this incentive, users are afraid to provide LPs due to fear of losing their investment to IL (impermanent loss).

A solution is needed which can provide users with high APR while keeping their risks to the minimum.
This is where our solution of **PDN (Pseudo-Delta Neutral) Strategy by leveraged yield farming **comes in.
It allows users to earn high farming yield, and provide liquidity to protocols while minimizing the risks at the same time.

Also if users are short or long at a particular token, they can take that position too while still earning farming yield and providing liquidity to the protocols.

Further information on Objectives, Implementation, and weekly milestones can be found in this document: PDN Strategies by Leveraged Yield Farming

Challenges I ran into

  • The main challenge is to provide a good ratio for supply and borrow yield. Supply yield should be high enough to make sure that people are interested in depositing tokens, and borrow yield should not be too much for users that want to use strategies of leveraged farming.
  • The above challenge can also be extended on how to invite more users for depositing tokens and using leveraged farming.

Discussion