LpMaxi

Inspiration

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: **LpMaxi, A 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 while still earning farming yield.

What it does

Our objective is to create a DeFi application that will allow users to earn yield using two ways:

1) Lend tokens:

Users will be able to lend tokens like Matic, Eth, Quick, etc, and earn interest on it. As this will be single staking, users will not have any impermanent loss.

2) Provide Liquidity through various strategy:

• PDN (Pseudo Delta Neutral) Strategy: If User is Neutral on Matic and wants the lowest risk
• Long LP strategy: If User is bullish on token like Matic, and wants higher gain (minimal IL) when price of Matic increases while farming Matic-USDC LP (contains more risk than PDN):
• Short LP strategy: If User is bearish on token like Matic, and wants gain when price of Matic decreases while farming Matic-USDC LP

Challenges we 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.

What's next for LpMaxi

The project is currently in beta stage. We will be adding the functionalities to go long or short in a token while earning farming rewards.

Built With

• amazon-web-services
• javascript
• nextjs
• python
• solidity