Another great milestone for FiRM with the introduction of Frax-pyUSD-DOLA LP tokens as collateral! Like our recent announcement with crvUSD-DOLA LP tokens, this further enhances the utility of DOLA LP tokens on Curve but adds momentum to this new class of collateral on FiRM.
Today we launch both Convex and Yearn markets for this LP token, allowing users the choice of two excellent yields on top of that of the LP.
The Opportunity
Better Productivity for your LP tokens: By depositing DOLA, FRAX, and pyUSD into Curve, users already enjoy a nice yield. Boosting this through Convex or Yearn amplifies the returns. Borrowing against this yield-bearing asset offers yet another layer for enhancing returns.
Simplified Collateral Deposits: Take advantage of Convex or Yearn yields for Curve LP tokens without depositing separately into Convex.
Competitive Fixed Rates. DOLA borrowing rates are among the lowest in the industry and they are fixed, not variable. For purposes of multiplying your leverage via the Accelerated Leverage Engine, the certainty of fixed rates is extremely valuable during periods of high volatility when, by comparison, variable rates may spike and trigger liquidation events.
Why Frax-pyUSD-DOLA matters on FiRM
Important class of collateral: LP tokens represent an attractive path for future collateral additions to FiRM
DOLA Liquidity and Lending Capacity: The addition of DOLA LP tokens directly supports DOLA liquidity, reduces liquidity costs, and increases DOLA's lending capacity.
Getting Started
Deposit Liquidity: Start by providing DOLA-crvUSD liquidity on Curve at . FiRM will automatically handle the subsequent deposit into Convex for you.https://curve.fi/#/ethereum/pools/factory-stable-ng-96/deposit
Leverage Your Position and utilize FiRM’s Accelerated Leverage Engine to:
Take out a DOLA loan.
Purchase more Frax-pyUSD-DOLA LP tokens.
Deposit these as additional collateral.
Repeat this process with just one click, maximizing your capital efficiency.
This market launches with a 90% collateral factor, ensuring high capital efficiency. Access the market here https://www.inverse.finance/firm
Important Notes
Do Your Own Research (DYOR): Always conduct your own research. Nothing in this post should be considered to be financial advice (NFA).
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