Liquidity Pools

Soon

Patience, you must have.

Liquidity Pools

In your Degen Account, you will soon be able to deposit your assets into Liquidity Pools to earn juicy yield. You can use all the tokens in your Degen Account, whether they are deposited, borrowed, or swapped. By using leverage in DegenPrime, you can provide more liquidity than you could on your own. That enables you to then farm more yield than you could on your own.

The partner protocol for the Liquidity Pools is Aerodrome, the main DEX on Base. It means that you can still provide liquidity to your favorite DEX with the same familiar interface, but this time with leveraged returns.

Interface

On this page, similar to Assets, you see specific information for each Liquidity Pool.

Aerodrome

Gud DEX. In this column, you'll see the relevant pool that it is about. Soon, you can click on the name of the pool, i.e. BTC - USDC, and it will redirect you to that pool on the Aerodrome app.

Stats

A teaser of what it is to come. Here you will be able to see some stats on how you have been performing as a Liquidity Provider.

Composition

Here you can view the composition of your LP-position. It will show you the nominal value of each asset relevant to your position, with the dollar-value below it.

For the big-brains, you can use these values to hedge your Degen Account if you want to decrease your exposure. If you get your debt as close as possible to your composition, that will decrease the impact of price movements on your Degen Account.

No price impact, but farming yield on leverage - that's a viable strategy too, don't let the Degens tell you otherwise.

Rewards

If there are incentives or rewards that you can claim as a Liquidity Provider of this pool, this is where you can claim them.

TVL

This column shows you the total value locked of the integrated pool. That is the total value in the pool of Aerodrome, not only on DegenPrime.

As a general rule-of-thumb: the higher the TVL, the more stable the APR, and the lower the impermanent Loss (IL). This is because trading volume is a large factor in determining both APR and IL.

APR (7d)

The APR shown here is the APR of the integrated pool. This is the percentage in rewards that you can receive as a Liquidity Provider.

APR is the classic annualizor. It takes the rewards of the past week, and shows what the percentage would be over the course of a full year. This percentage does not take into account any potential impermanent loss.

Max. APR

Again, an annualizor, but this time a leveraged annualizor. The maximum APR on a pool depends on two factors; the APR from the pool, and the lowest borrowing APY of all the assets.

It works like so. The Max APR assumes that you borrow to max capacity (let's call it 10% health), and that you borrow the asset with the lowest APY. If you then LP your full Degen Account into the pool, that'll get you the Max APR. Like a true Degenerate.

Actions

These pools aren´t just a pretty face, they are to be used (soon). With the Actions, you can interact with the pools in your Degen Account.

Add positions

Adding a position means that you will have an LP-token in your Degen Account. This LP-token is not directly visible in the Assets interface, but does count towards the total value of your Degen Account. If you want to add a position, you have two options; add or create.

• Add: If you already have the LP-token outside of your Degen Account, you can add them here. In the process of doing this, you add collateral to your Degen Account, thereby increasing the total value and health percentage. This means you can borrow more!

• Create: This action uses assets within your Degen Account. In the pop-up window, you need to insert the number of assets to use for this position.

Remove position

Removing a position has two options, each with the reverse effect of their 'add'-counterpart:

• Export: The export function is similar to withdrawing, and the same requirements as Taking Profits apply. It means you want to withdraw an asset, but it is in the form of the LP-token. This removes collateral from your Degen Account.

• Unwind: Unwinding a position means redeeming the underlying assets of the LP position. It will remove your position from the liquidity pool and return the assets to the balance of your Degen Account.