In general, liquidity providers refer to users who supply liquidity to trading pairs and receive rewards during the supply period. Below is an example scenario of a borrower in Balanced DEX:
- 1.Bob deposits 100 ICX to ICX / sICX pool.
- 2.Bob receives 5 BALN everyday.
- 3.Bob withdraws 100 ICX plus 35 BALN after 1 week of supplying.
Note: currently Optimus only supports stable trading pairs where impermanent loss is non-existent.
For this strategy, Optimus focuses more on maximizing ROI for the users by:
On ICX / sICX trading pair, the deposited ICX amount can be converted into sICX after a swap from a random trader and the liquidity provider does not earn reward anymore. In this case, they will have to manually unstake sICX or trade sICX to ICX and supply liquidity again. Optimus will monitor and automate this entire process, the protocol will unstake and deposit again as soon as the ICX amount is available to claim.
Optimus currently supports the following liquidity provider markets:
- ICX / sICX.
Note: we do not charge swap fees generated by providing liquidity for these trading pairs, the generated fees will be returned to our users 100%. Instead, the only fee Optimus charges 5% over daily BALN reward.