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Leverage Your Uniswap positions and Multiply your fees

Uniswap leverage with YLDR | Poolfish launches on Kinetix and Thena chains

Total Volume + Fees

The L2s are heating up! Uniswap just announced that more than 2 million people have used Uniswap on Eth L2 chains. And the markets seem to be cooling off for a bit.

rsa on warpcast
Uniswap L2 users

However trading volume But LP profits are still stable with the newly launched WETH/SatoshiVM pool garnering > $2.1 million in fees...with a lot of LPs making 5 figure APYs.

In other news @chef describes their tale of loosing $30k by depositing to an empty BONK/GECKO liquidity pool on Meteora (SOL) and getting arbitraged (rekt) by an MEV bot. It's a good cautionary tale to people looking to LP using two memecoins and not double checking everything you are doing.

YLDR

Are you looking for more yield on your Uniswap V3 position but short on capital? Maybe your V3 position has been performing well and you want to double down on it? Or maybe you want to use your Uniswap position as collateral for loans?

Introducing: YLDR, a fast growing ecosystem for LP derivative markets, focusing on Uniswap V3 LP positions.

  • Leverage your LP Positions

  • Supply assets

  • Borrow assets using LP positions as collateral

Amplify Your LP Returns

With YLDR, you can now leverage your Uniswap V3 positions to amplify your returns and even make money arbitraging on market conditions based on which asset you borrow.

YLDR is a recently launched two-sided marketplace that is quickly gaining traction, already attracting over $260k in supplied assets collectively on ETH and Arbitrum.

YLDR's intuitive platform makes it easy for LPs to borrow particular assets in accordance to their concentrated Uniswap V3 position.

Arbitrum's low fees has made lending and borrowing appealing, with half of the supply on Arb already borrowed.

This allows you to deposit into relatively safe pools of stable pairs and leverage even more capital towards generating fees. Or place hedges against volatile assets to multiply the gains from the price difference.

YLDR determines a borrow and lending APY based on market demand and fluctuates based on availability of a particular asset.

For example at the time of writing, USDC fetches a very good APY for lenders but for borrowing, it is too expensive.

On the other hand, ETH offers a good borrow APY and is a good choice if you want to leverage for the ETH and Stable pairs pool.


With any market offering leverage, liquidation is important to keep in mind. It's important to limit and control exposure to not lose your position.

When you are about to take a leveraged positioned, YLDR gives a clear breakdown of your liquidation threshold as well as your borrow APY.

The APY on your borrowed assets is a key consideration, as an excessively high rate can erode profits and potentially even cause the position to lose money over time. So it's a good idea to keep a reasonable margin in your LTV and liquidity threshold while at the same time keeping an eye for the fee for borrowing an asset.

One think to consider here is that there is also an opportunity here to arbitrage your CL position based on the split of your provided liquidity, earning multiple times the fees & the price difference appreciation.

Strategies for Bullish or Bearish Outlooks

Let's say you are bullish on ETH and you want to leverage your ETH/USDC position.

If you think ETH will go up , and you have a position with 40% and 60% USDC, then you will slowly accumulate more ETH. And you also have leveraged your position 3x using YLDR borrowing only USDC.

Now when ETH goes up you make 3 times the rate for both fees and the underlying asset appreciation. And, remember here you borrowed only USDC from YLDR, which means that your borrowed asset has not appreciated

And if you think ETH will go down, you can hedge against ETH, by borrowing only in ETH on YLDR. Since the borrowed asset is down in USDC value, you can exit your position profitably.

Borrow and Supply assets

What's more is that YLDR also allows you to put your Uniswap V3 positions as collateral to borrow any standalone asset like USDT or ETH.

In addition to that, you can also be a supplier of an asset that provides the necessary funds to LPs for their leveraged positions. Depending on some factors, it could be a healthy APY.

Here is an example of the supplying and borrowing rates on YLDR. These can vary by a lot given market demand and supply.

Borrow and Supply rates on YLDR

There are quite a few factor when considering leveraging your Uniswap positions. And in certain cases where the market moves in your favor, leveraging your LP can be incredibly profitable. Head on over to their app and see which positions you can leverage and maybe even supply some of your assets to other LPs!

disclaimer: We would like to thank YLDR for this sponsorship with Poolfish.

Poolfish Launches on Thena & Kinetix

In an ever evolving quest to provide the most diverse set of tools in the LP sphere, Poolfish now supports Thena and Kinetix LP calculators on our website.

Thena is a AMM based Dex focused on the Binance Smart Chain with a TVL of $28 Million. Thena.fi offers single sided LP positions to minimize IL and make the process of LPing easier through their 'vaults', where they manage your deposited tokens and try to maintain it's percentage at a high share in the position (65-95%).

And Thena is seeing a spike in their generated fees. For new LPs this could be a great way to break into DeFi.

THENA fees by month

And Kinetix Finance is a platform that offers different financial services like a trading exchange and derivative markets. It's also working on developing new solutions for banking and capital markets using data, AI, and interoperability (Automated Liquidity Management). Kinetix has a TVL of $15.98 Million

Both the chains are picking up steam in this bull run and you can check out all their liquidity pools on Poolfish:

Thena

Kinetix

Top Pools of the Week

High-Risk

MATIC/USDC & ETH/ARB in the exotic pairs category for the ones feeling adventurous.

ETH/ARB is one of the supported pairs on YLDR

Low-Risk

XEN/ETH & MAGIC/ETH for the balanced swimmers.

Safe

cif/ETH AND VXV/ETH in the 5bps category for the cautious paddlers.

That's all for this week LPs. See you in the next Poolfish edition!

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