Supplying assets into LPs
When a user interacts with Phantazm by supplying any of the 6 supported assets, it closely resembles the process of engaging with Balancer weighted pools. This seamless interaction offers numerous advantages, thanks to our innovative two-token model.
The key benefits of this model include:
1. Enhanced Liquidity Retention: The dual-token model is designed to provide users with greater earning potential compared to simply supplying or lending directly into Phantazm's lending markets. With the opportunity to earn a higher annual percentage rate (APR) and the allure of retaining their BOOST incentives, users are more likely to continue as liquidity providers (LPs). This structure, in turn, ensures greater liquidity retention, or 'stickier liquidity'.
2. Swap Fees Potential: Traditionally, lending markets don't offer swap fees. However, our two-token model facilitates swaps, which introduce an additional revenue layer to the protocol and enhance its utility.
3. Multiple Revenue Streams: The diversity of revenue streams makes liquidity provision in the Phantazm's LP pool potentially more profitable than other options, such as Uniswap v3, Convex, Curve, etc. LPs are eligible to earn in multiple ways, including:
Supply APR: Earn annual returns for the provision of liquidity.
Protocol Revenue: Share in the profits generated by the protocol.
Swap Fees: Earn fees from the swaps made on Balancer.
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