Passive Liquidity Providers
Panoptic offers a streamlined approach for passive liquidity providers (LPs), enabling you to earn yield without the need for constant position management, monitoring, or dealing with impermanent loss. With Panoptic, you can enjoy the benefits of providing liquidity on Uniswap with the ease of a set-and-forget strategy.
Why Choose Passive Liquidity on Panoptic?
- Hassle-Free Yield: Unlike Uniswap V3, which requires active management to stay within a price range, Panoptic allows you to provide single-sided liquidity passively. This means no need to rebalance, monitor positions, or handle complex decisions.
- Auto-Compounded Rewards: Passive LPs on Panoptic enjoy automatically reinvested and auto-compounded rewards, allowing you to earn yield on your yield.
- Risk Mitigation: Passive liquidity pools eliminate exposure to impermanent loss (IL) and loss-versus-rebalancing (LVR). Funds are deployed to an intermediary Panoptic pool, with yields generated from active LPs and option buyers, making this an ideal solution for LPs who prefer a stable, hands-off approach.
How Does Passive Liquidity Work?
- Provide Single-Sided Liquidity: Deposit any token, in any amount, into a passive liquidity pool. There’s no need to worry about choosing a price range.
- Earn Passive Rewards: Your deposited liquidity is available for active LPs to borrow and deploy on Uniswap at specific price ranges, generating yield. Option buyers who short these LP tokens also pay fees, which contribute to your earnings.
- Auto-Compounding: Rewards from active LPs and options buyers are automatically reinvested, maximizing your returns over time.
Factors Affecting Yield
Your yield as a passive LP depends on:
- Your Share of the Pool: The more tokens you deposit, the greater your share of the pool’s rewards.
- Active LP and Options Volume: The more liquidity moved between the Panoptic pool and the Uniswap pool, the greater the rewards.
Get Started Today
Ready to earn passive income with minimal effort? Visit the gRHO app (coming soon) for a simpler way to LP.
Note: you can also passively LP into Panoptic by visiting the trading app (coming soon) and depositing into any pool. Once you've deposited, you'll begin earning passive yield on any subsequent LP and options volume in that pool.
