Supply
🚰 Introducing a new kind of Liquidity Pools
Anyone is now able to deposit USDC to start earning proportional share of fees generated from interest paid by the borrowers on DeFrag.
ULPs automate proportional tracking of USDC deposits & fees earned, opening up the floor for anyone to become an underwriter
2. Choose the collateral asset you would like to back.
3. Approve USDC for use in the ULP contract & deposit your desired amount.
4. Once you supply USDC, you will receive ULP tokens (wrapped USDC) in return which track your pool share.
5. Redeem your ULP tokens anytime to withdraw USDC deposited + any fees earned.
As with any new DeFi primitive, there might be unforeseen economic vulnerabilities. Please use it at your work risk.
It's worth noting: Before opening up underwriting liquidity pools to the public, we wanted to make sure our model was worked in production. All the USDC underwriting liquidity until the ULP launch (3/24/2023) has been manually provided by our core team, earning an average APY of ~45% in fees from borrowers!
If you want to get more information on providing liquidity on DeFrag you can join our discord: https://discord.gg/defrag.
Last modified 3mo ago