LP - Enhancing Your Tonstakers Returns
Last updated
Last updated
FIVA introduces a unique approach to liquidity provision in DeFi. Unlike traditional AMMs that require token pairs, FIVA lets you provide liquidity using just one yield-bearing token – whether it's tsTON, sUSDe, or Storm LP tokens. This means your otherwise idle assets can generate multiple streams of revenue. When you become a liquidity provider in FIVA, you earn from three sources
Your original protocol yield continues generating returns, some with additional multipliers from our partners
Trading fees from market activity in FIVA pools
FIVA points that reward long-term liquidity providers
For example, if you're holding sUSDe, you'll continue earning Ethena's base yield while collecting additional rewards from FIVA's ecosystem. A key advantage of FIVA's liquidity pools is their protection against impermanent loss when held to maturity. This is possible because both tokens in the pair (SY and PT) converge to the same value at maturity, eliminating the primary risk traditional LP positions face.Comment
For Tonstakers, the first step is always to wrap your tokens, then the automated process handles the rest:
Step 1: Wrap Your tsTON
Navigate to the Wrap section in FIVA
Select tsTON
Enter the amount you want to wrap
Complete the transaction to receive SY tsTON
Step 2: Access the Pools Section
Navigate to the Pools section in FIVA
Select the Tonstakers pool
Step 3: Use the Automated Process
Enter the amount of SY tsTON you want to provide
Click "Provide Liquidity"
Confirm two transactions:
First to mint PT tokens
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.
If you want to optimize capital efficiency when there's good liquidity:
Step 1: Wrap Your Tokens
Navigate to the Wrap section
Select tsTON
Complete the transaction to receive SY tsTON
Step 2: Obtain PT Tokens You have two options for getting PT tokens in Markets Section:
Mint them directly (recommended when pool liquidity is low)
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 SY tsTON and PT tsTON tokens:
Navigate to the Pools section
Select the Tonstakers pool
Enter the amounts of both 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 protocol points or FIVA points.
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
By following these steps, you can put your yield-bearing assets to work in FIVA's ecosystem, earning multiple revenue streams while maintaining protection against impermanent loss at maturity.