💲Liquidity Provision

LP Farming

The Liquidity Provision (LP) strategy, also known as farming, allows liquidity providers on decentralized exchanges (DEXes) to maximize their returns from LP token deposits. When users supply liquidity and deposit their LP tokens into the Corepound vault, the strategy takes over, automatically reinvesting any rewards earned to help grow their earnings.

As soon as LP tokens are deposited, Corepound optimizes the yield by redirecting rewards from liquidity incentives back into the same token pairs. These rewards are then reinvested into the liquidity pool. This boosts the user's position and continuously compounds the original deposit to achieve even higher returns.

Advanced Liquidity Provision strategy (TBA)

Corepound introduces an enhanced liquidity provision method, allowing users to provide liquidity directly on the platform, such as in the BTC-CORE pool, by supplying equal token values. Corepound then strategically stakes these assets in targeted V3 liquidity pools, automatically compounding returns at maximum efficiency within an optimized trading range based on historical asset-price data. Additionally, Corepound will include a convenient ZAP feature that enables users to supply liquidity with just one asset, which is seamlessly converted into a dual-asset pair and simplifies the liquidity provision process for greater flexibility and accessibility.