Zap to Provide Liquidity
One-click to yield-farm with no impermanent-loss
How to Ape
Go to Pendle Pro markets
Select which pool to provide liquidity to
Zap in to provide liquidity
Select the input asset (i.e. what you want to use to zap into LP) and the amount
Review the Output and Price Impact of your trade
Approve and confirm the transaction
Redeem rewards from the Pendle Dashboard
[Optional] Lock PENDLE for vePENDLE to boost LP incentives
How does it work?
By providing liquidity to Pendle pools, you get to earn swap fees, PENDLE incentives, PT fixed yield, as well as any other yields from the underlying yield-bearing asset.
On top of all these rewards, vePENDLE holders can also boost their Liquidity Provision APY up to 2.5X. Click here to learn more.
Providing liquidity on Pendle can be as simple as just a one-click transaction, allowing you to swap any assets you hold (e.g. USDC) into Pendle LP positions (e.g. Pendle LP-stETH).
Similarly, you can also zap into Pendle LP positions using other Pendle assets like PT or YT.
ELI5
What to Look Out for
LP with Idle Assets
If you have yield-bearing assets (e.g. stETH) sitting idle in your wallet, you can consider providing liquidity on Pendle to earn additional yields on top with no IL risk.
stETH LPs for example will earn:
PENDLE incentives
stETH staking rewards
Swap fees
PT-stETH fixed yield
Zap in when Implied APY / Fixed APY is High
Just like with buying PT, it is ideal to Zap into the LP when the Implied Yield is high. This means that PT will be cheaper (relative to the underlying token), and the resulting fixed rate will be higher.
When it comes to exiting the position, you should look to sell when the Implied Yield is low, or you can hold the LP position and continue earning yield from the pool until maturity, after which the PT can then be redeemed for the underlying token.
Shorting Yield with LP
Since Pendle pools contain PT, you can also Zap-in to LP as a way to short yield, all while earning PENDLE incentives and swap fees on top.
For instance, to switch from long to short, simply sell your YT for LP instead of PT.
Price Impact
Make sure to review the Price Impact before you decide to Zap-In. A large price impact can result in you receiving less than expected.
You can also toggle on Zero Price Impact mode to avoid this, which will send the corresponding Yield Tokens (YT) to your wallet instead.
Boost APY with vePENDLE
You can earn more yield from your LP positions by locking PENDLE for vePENDLE.
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