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Paris, France, April 8, 2024, Chainwire
Swaap Labs has announced the launch of Swaap Earn, a new protocol designed to increase DeFi yields. The solution enables liquidity providers to achieve higher yields, maximizing DeFi returns while mitigating risk.
Swap Earn utilizes a novel system with increased liquidity that allows users to top up the returns of even native yield-producing tokens with market-forming returns. It builds on the success of Swap Maker, the protocol's existing market-making infrastructure, which has delivered consistent returns to date. Exposure to a single asset supports instant token deposits without position management.
Users can enjoy higher returns on high-yield tokens and benefit from optimal asset allocation. This strategy is dynamically distributed across a set of predefined protocols, ensuring users always receive the best returns that match their risk tolerance. Governance allows strategies and allocation rules to be added to ensure vaults are up to date with the latest yield generation opportunities.
After depositing funds into single asset vaults, Swaap Earn Liquidity Providers can achieve superior returns. The strategy is 100% passive, with the protocol matching capital allocation to whitelisted protocols to increase returns in a trust-minimized manner.
David Bouba of Swaap Labs said: “The beauty of Swaap Earn lies in its simplicity and efficiency. By combining our cutting-edge market making strategies with passive yield generation, we are setting a new standard for liquidity utilization in the DeFi space.”
Swap Earn values usability, with a particular focus on UI/UX. The first vaults using Swaap Earn were developed in collaboration with partners such as Lido and AAVE, with AAVE providing a grant to Swaap Labs to support Swaap Earn's development.
With Swaap Earn, deposited asset liquidity is routed to DAO-approved protocols and assets. A strategist dynamically allocates liquidity across pre-approved options, enabling optimal capital allocation based on market conditions and efficient collateral management on lending platforms. This dynamic strategy allows for maximizing returns while minimizing downside risk.
DeFi users often struggle with risk management and configuring complex strategies. Despite advances in strategy and risk mitigation, problems such as poor strategy design and liquidation risks remain. Swap Earn was created to solve these challenges while increasing the returns available to LPs.
Efficient use of liquidity is one of the biggest challenges for DeFi developers as the growing multi-chain landscape leads to liquidity fragmentation. Revised fee structures by popular AMMs have also resulted in LPs earning fewer fees than before. As a result, it has become more difficult to generate sustainable returns. Swaap Earn was created to address these issues and set a new benchmark for achievable DeFi returns.
About Swap
Swap is a non-custodial and interoperable market-making infrastructure. It offers optimized market making strategies tailored to the needs of DeFi users. From maximizing returns to increasing liquidity, Swap enables on-chain users to capture more value and achieve greater capital efficiency.
Find out more: https://www.swaap.finance/
ContactCyrille Pastour[email protected]
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