Providing liquidity to pool-based decentralized exchanges (DEX) is one of the main sources of yield in the DeFi space. However, this strategy has two major drawbacks.
For part-time investors who already have their hands tied elsewhere and wish to earn a peaceful passive income, the risk and complexity associated to liquidity pools is too high and most of them prefers to keep their crypto sleeping in their wallet.
For experienced liquidity providers, who are familiar with impermanent loss and yield farming, providing liquidity is not always capital efficient and they prefer to focus on more complex strategies or move to concentrated liquidity DEX.
Securd solves these two issues by splitting the liquidity provision position into two strategies:
  • Indirect Liquidity Providing, where Depositors receive passive income while transferring risk and complexity to experienced liquidity providers (Borrowers).
  • Leveraged Liquidity Providing, where experienced liquidity providers can optimize their capital usage and multiply their returns by accessing extra funding at a reduced cost.