Zap to Provide Liquidity

One-click to yield-farm with no impermanent-loss

How to Ape

  1. Go to Pendle Pro markets

  2. Select which pool to provide liquidity to

  3. Zap in to provide liquidity

    1. Select the input asset (i.e. what you want to use to zap into LP) and the amount

    2. Review the Output and Price Impact of your trade

    3. Approve and confirm the transaction

  4. Redeem rewards from the Pendle Dashboard

  5. [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.


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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