LP - Maximizing Returns from Storm Vaults

Why Provide Liquidity to Storm Markets?

FIVA introduces a unique approach to liquidity provision for Storm vault tokens. Unlike traditional AMMs that require token pairs, FIVA lets you provide liquidity using just your Storm LP tokens (SLP). This means your existing Storm position can generate multiple revenue streams.

When you become a liquidity provider in FIVA's Storm pools, you earn from three key sources:

1. Your original Storm vault yields continue generating returns

2. Trading fees from market activity (up to 0.5%)

3. FIVA points that reward long-term liquidity providers

With this multi-stream approach, your Storm vault tokens work significantly harder than a standard deposit, 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 token values converge, providing more predictable returns for liquidity providers.

How to Provide Liquidity: Step-by-Step Guide

Automated Method (Recommended for Large Positions)

Our streamlined process simplifies liquidity provision:

Step 1: Access the Pools Section

1. Navigate to the Pools section in FIVA

2. Select Storm SLP pool

Step 2: Use the Automated Process

1. Enter the amount of your SLP you want to provide

2. Click "Add Liquidity"

1. Confirm two transactions:

   1. First to mint PT tokens

   2. Second to establish your LP position

Important Note: The automated process uses the minting route, which means you'll receive YT tokens as a byproduct. These YT tokens will appear in your wallet and can be either held for farming or sold in the market.

Manual Method (For Better Capital Efficiency)

If you want to optimize capital efficiency when there's good liquidity:

Step 1: Prepare Your Tokens You'll need two components:

• Your Storm SLP

• PT tokens for the Storm SLP

Step 2: Obtain PT Tokens You have two options for getting PT tokens in Markets Section:

1. Mint them directly (recommended when pool liquidity is low)

2. Buy from existing liquidity pools (more efficient when liquidity exists and slippage is low). Buying PT tokens from the pool means you won't receive YT tokens, which can be more capital efficient when liquidity is good.

Step 3: Provide Liquidity Manually Once you have both your yield-bearing tokens and PT tokens:

1. Navigate to the Pools section

2. Select the USDT pool

3. Enter the amounts of both tokens

4. Complete the transaction

Which Method Should You Choose?

• Automated Method: Best for beginners and those adding significant liquidity who don't mind receiving YT tokens.

• Manual Method: Preferred for capital efficiency optimization when there's good liquidity in the markets and you want to avoid receiving YT tokens.

Step 4: Monitor Your Position

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 protocol points or FIVA points.

Benefits Summary

• Continue receiving your Storm vault returns

• Earn trading fees from market activity (up to 0.5%)

• Collect FIVA points with special multipliers

• Experience minimal impermanent loss risk when held to maturity

Summary

By providing liquidity in FIVA's Storm pools, you transform a standard vault position into a multi-faceted earning opportunity. You'll continue to receive your base Storm yields while collecting trading fees and FIVA points – all while experiencing minimal impermanent loss risk, especially when held to maturity.

This approach maximizes your capital efficiency while maintaining the security and performance that Storm users value. For those already participating in Storm's ecosystem, liquidity provision represents a natural evolution toward enhanced returns.