LP - Multiple Income Streams
Last updated
Last updated
FIVA introduces a unique approach to liquidity provision for Ethena USDe. Unlike traditional AMMs that require token pairs, FIVA lets you provide liquidity using just your USDe deposits. This means your Ethena position can generate multiple streams of revenue simultaneously.
When you become a liquidity provider in FIVA's Ethena pool, you earn from four valuable sources:
Your original Ethena yield continues generating returns
Trading fees from market activity (up to 0.5%)
Ethena points with additional multiplier
FIVA points with special multipliers
With this multi-stream approach, your USDe deposit works significantly harder than a standard Ethena position, maximizing your overall returns.
A key advantage of FIVA's liquidity pools is their minimal impermanent loss risk compared to traditional AMMs. This risk is further reduced at maturity as the token values converge, providing more predictable returns for liquidity providers. Learn more about impermanent loss in this .
Our streamlined process for providing liquidity requires just a few steps, but involves two separate transactions you'll need to confirm:
Step 1: Access the Pools Section
Navigate to the Pools section in FIVA
Select the Ethena USDe pool
Step 2: Use the Automated Process
Enter the amount of USDe you want to provide as liquidity
Click "Provide Liquidity"
Confirm the first transaction to mint PT tokens
Confirm the second transaction to complete the LP position
Important Note: This automated flow goes through the minting process, which means you'll receive YT tokens as a byproduct. These YT tokens will appear in your wallet and can be used for leveraged farming or sold in the market.
Capital Efficiency Consideration: If you don't want to receive YT tokens and there's sufficient liquidity in the pool, you may prefer the manual method of buying PT tokens directly from the market. This approach can be more capital efficient when there's good liquidity, as you avoid the spread between minting and market rates.
For users seeking maximum simplicity, the automated flow handles the complexity for you, while those optimizing for capital efficiency may prefer the manual approach depending on current market conditions.
This automated process handles all the complexity behind the scenes, creating a seamless experience.
If you already have PT tokens or prefer more control:
Step 1: Prepare Your Tokens
Your USDe tokens
PT tokens for Ethena USDe
Step 2: Obtain PT Tokens (if needed) You have two options for getting PT tokens:
Mint them directly in the Markets section
Buy from existing liquidity pools
Step 3: Provide Liquidity Manually
Navigate to the Pools section
Select the Ethena USDe pool
Enter the amounts of USDe and PT tokens
Complete the transaction
Track your position through the Dashboard, which shows your current PnL. Note that this PnL display focuses on underlying yield performance and doesn't include Ethena or FIVA points.
Continue receiving your Ethena USDe yield
Earn trading fees from market activity (up to 0.5%)
Accumulate Ethena points (with delegation properly set up)
Earn FIVA points with special multipliers
Experience minimal impermanent loss risk when held to maturity
By providing liquidity in FIVA's Ethena pool, you transform a standard stablecoin position into a multi-faceted earning opportunity. You'll continue to receive your base Ethena yields while collecting trading fees and various protocol rewards – all while experiencing minimal impermanent loss risk, especially when held to maturity.
This approach maximizes the earning potential of your stablecoins while maintaining the security and stability that Ethena users value.
To monitor your Ethena points, you'll need to check Ethena's interface after completing the delegation process (connecting your TON wallet with an Ethereum address for rewards). Detailed guide how to collect Ethena Points can be found in this .
