LP Tokens
Supply LP tokens to borrow and realize additional yield
Fountain accepts YuzuSwap and GemKeeper LP tokens as collateral to support yield farming on the Oasis ecosystem. The smart contracts have been audited by Verilog, you can check the full audit here.
The feature allows the LP tokens you supply on Fountain to not only be automatically farmed for additional yield, they will also be used as collateral for you to get loans! This will make the Fountain Protocol much more versatile and significantly improve capital efficiency.
Before using LP Tokens as collateral, you have to provide liquidity in Yususwap or GemKeeper and obtain LP tokens supported on Fountain. Currently, Fountain accepts the following LP tokens:
Follow this link to view how to provide liquidity on Yuzuswap. Then follow the detailed step-by-step guide below to get started.
1. By supplying LP tokens in the Fountain platform, users earn a variable interest rate and LP trading fees. To supply the pair of LP tokens to the Fountain platform, a user needs to do is:
2. Visit https://ftp.cash/dashboard/markets and click the LPs tab on the Market page, then select LP token from the dropbox menu in the SUPPLY dashboard. The first deposits will require an approval transaction, click the enable button and confirm the transaction in your wallet.
3. Enter the amount of the LP token to be supplied or press Max to deposit the wallet's entire balance of that LP token. Then Press the Supply button to initiate the transaction and deposit the LP tokens.
4. Once the transaction is confirmed, the deposit is successfully registered and it starts earning interest and LP trading fees.
When borrowing LP tokens on Fountain, LP tokens supplied are able to act as collateral and thereby enable borrowing from the platform. This allows the user to borrow LP tokens against the value of those that they have supplied.
1. Ensure that the "Use as Collateral" tab is enabled in the "Supply" section as shown in the image below:
2. Click on the MARKETS tab on the menu and click on "Borrow". Then select the type of LP tokens from the dropbox menu in the "Borrow" dashboard, enter the amount of the LP token to be borrowed or press the 80% Limit.
3. Once the transaction is confirmed, the borrow is successful and it starts accruing payable interest while earning $FTP rewards and LP trading fees.
Last modified 9mo ago