2026-01-06 17:25:18

What frustrates liquidity providers the most? Putting money into an LP pool essentially locks it up—there are returns, but it's nearly impossible to use these funds flexibly. You have to withdraw to access them, and withdrawing means losing the trading fees. This vicious cycle has now been broken.

A latest innovation from a leading DeFi protocol allows LP tokens to serve dual purposes. Your high-liquidity LP positions like BNB/slisBNB or USDT/USDC can be directly used as collateral to borrow stablecoins (with annual interest rates as low as 0%), which are then transferred into compliant platform financial products—currently, stablecoins can yield over 18% annually. The key is, the original LP tokens continue to sit in the trading pool earning you fees.

Numbers speak for themselves. Suppose you have $1,000 worth of BNB/slisBNB LP tokens. The pool's trading fees can earn you about $7 per month (assuming an annualized rate of 5%-10%). At the same time, using these LPs as collateral to borrow stablecoins for investment yields an additional roughly $15 per month. That’s $22 in income per month, with an annualized return exceeding 26%. What about risks? The platform has built a dedicated LP valuation system and real-time warning mechanisms. Its liquidation logic uses Dutch auctions to ensure fairness. Currently, this system manages assets exceeding $350 million.

In simple terms, it allows your LP funds to work in the pool and generate income simultaneously—double the benefits.

BNB-0,72%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

23 Likes

Reward
23
7
Repost
Share

Comment

0/400

ponzi_poet

· 01-09 17:02

26% annualized? So this is the legendary "killing two birds with one stone"... Sounds good, but is it really that attractive?

View OriginalReply0

GateUser-2fce706c

· 01-08 22:44

Opportunities like this don't come often, everyone. This is what I called "capital secondary utilization" three years ago, and now a project has finally brought it to life. A 26% annualized return is not a dream. I've always said that the second half of DeFi is played like this.

View OriginalReply0

MetaEggplant

· 01-06 17:54

Wow, someone finally thought of this solution. The previous LP model was really useless. Now that this coin has dual functionality, I need to study it carefully.

View OriginalReply0

CryptoPhoenix

· 01-06 17:54

26% annualized? This time it's really a chance for rebirth, the bottom range should be this greedy [Laughing with tears] Damn, the one-token dual-use play... should have done it like this a long time ago, no more getting locked out Conservation of energy is correct, LP fees plus borrowing interest, feels like this wave is really stable? Wait, $350 million scale... can this risk really be controlled, or are we going to be taught a lesson again? Eventually, the dawn will come. Let's try $100 first to test the waters. This is what I want, making money on both sides without worries. Remember, you need to stay clear-headed when losing money, but this time it really seems different.

View OriginalReply0

BearMarketSurvivor

· 01-06 17:53

This move is awesome, finally no need to choose between withdrawing and earning fees anymore.

View OriginalReply0

MidnightMEVeater

· 01-06 17:43

Good morning, still watching this at 3 a.m... Another "flawless" arbitrage dream. A $350 million scale sounds impressive, but the real midnight feast is when the liquidation triggers.

View OriginalReply0

NFT_Therapy

· 01-06 17:41

Wait, isn't this just earning fees with the left hand and earning lending interest with the right hand? So smooth... Why didn't anyone think of this logic earlier?

View OriginalReply0