xyk - The Home of Liquidity Providers The market is tough right now. Liquidity, trading volume, and DeFi activity from degens are all reaching ATL levels. However, liquidity provision (LP) remains one of the most meaningful ways to participate in DeFi. By becoming an LP, you can generate passive income while contributing liquidity that powers trading activities across the ecosystem. I would like to gather LP enthusiasts into a community where we can exchange knowledge, share experiences, discuss strategies, and discover alpha around LP. If you're interesting in what I'm building, please join the group: t.me/xyk_community Together, we can help each other become better liquidity providers, capture more opportunities, and fight for DeFi Renaissance. 🤜🤛

Mix of Lping Strategies (Day 157) Bridged all my funds from Hemi to Monad (and spent a few bucks on bridging fees) since this change is bringing meaningful volume and Merkl incentives in monad:native . MON price action looks decent as well. Almost a year after its TGE, MON has traded between its ATL of $0.0163 and $0.034. I decided to use @KyberNetwork ZAP to open two positions: 👉 WETH/USDC on Uniswap V4, range ($1,600; $3,000) 👉 WMON/USDC on PancakeSwap V3, range ($0.016; $0.033) Both pools offer additional incentives through Merkl. - My current portfolio value is $1,280 (ROI: 21.9%) - Track my wallet here: debank.com/profile/0x0f45cd4…

Many people think that @metricxyz PropAMM is the holy grail of liquidity provision with high capital efficiency and no IL risk, just like bonding-curve AMMs such as CPMM/CLMM/DLMM. But wake up, Tinker Bell. The reality is: by LPing on Metric, you still get IL as usual (even higher than a normal CLMM if the curator doesn’t do a good job), and you’re also exposed to other risks like stale prices, rebalancing losses, and bad or malicious quotes. At the end of the day, there’s no free lunch in LPing at all. *In the picture, Trading P&L APR (the IL) of ETH/USDG pool on Robinhood is -18.80%.

Should be happy when $SPY goes down. Because it will go back to the track anyway with some extra fees for you.

Ve33 model envolves over time.

Using Kyber Zap to Take Profit in UNI Token Take a look at the UNI/ETH chart on Uniswap (Arbitrum). ethereum:0x1f9840a85d5af5bf1d1762f925bdaddc4201f984 got a nice run during @RobinhoodCrypto chain hype last September, going from 0.002 ETH all the way up to 0.004 ETH. Then Robinhood stopped its gas sponsorship program, meme tokens dropped, volume on the chain fell, and the hype around UNI faded with it. So I decided to lock in some profit into ETH. Looking at the chart, UNI/ETH hasn't been able to break out of the (0.002;0.005) range for over 4 years. I jumped into this range using @KyberNetwork zap function, which swapped roughly 85% of my UNI to ETH and added it to the position in one transaction. No manual math, no multiple steps. Then 02 scenarios can play out from here: ⚡️Scenario 1: If UNI price drops, my ETH will DCA-in more UNI. And I'm also happy with that. ⚡️Scenario 2: If UNI price pumps, it's historically rare for it to break out of the range and stay above 0.005. The data is on my side. Either way, I'm earning 30–42% fee APR while I wait. LPing isn't about betting on direction. It's about planning for every scenario.

Getting 40% APR on ETH/USDG on Robinhood is tough these days. BrownFi gives you 70% APR with low IL and zero range monitoring required.

Time to get back to Berachain though.

LPing is almost reaching saturation 🤔 In tradfi, fee reduction is the worst tactic to compete with others. Competitors fight each other by cutting fees to attract users and volume, but they also cut their own margin. Good for users, but at the end of the day, none of those exchanges win. But in the on-chain LPing game, fee reduction seems like the only choice DEXs have right now to suck up volume. Take a look at the swap fees of ETH/USDG from 3 different DEXs on Robinhood: ▶️ @Uniswap : 0.01% ▶️ @giga_dex : 0.005% ▶️ @uponrh : 0.0087% All 3 are offering swap fees way lower than a CEX, which normally sits around 0.1%. And according to ETH annualized volatility at 48% (Deribit stats), if you play a safe ±50% range strategy, you only get approx 10-15% APR. That's acceptable, and I believe this is the final backstop for the LPing game. We're almost at equilibrium. If these platforms keep lowering fees below current rates, I'm afraid LPing just isn't worth it anymore. LPs will remove their positions, and no one wins.

Mix of Lping Strategies (Day 138) Time to catch the dip? Yes, but in LPing style. My HemiBTC/VUSD position has earned me 42 USDC in incentives on Hemi so far. I harvested the incentives and then set up a single-sided ETH/USDC position with a range of $2,000–$2,590. Unrealized PnL = $281 (22%)

How KyberSwap protects your rate twice: off-chain, then on-chain Aggregator quote spoofing is real. 0x just published the data: of 84,163 Uniswap v4 hooks they scanned, they classified 54% as malicious. In the worst cases, users received up to 50% less than the quote showed. Well, I agree on the diagnosis. But I disagree on the cure. The problem isn't hooks. It's that quoting happens off-chain, before your trade settles. A hook can show a tight quote to win the route, then widen the spread before execution. So can a PropAMM. So can a sandwich attack. So can an LP pulling JIT liquidity. Every one of these exploits the same gap: the router decided seconds ago, and your money moves now. Filtering pools doesn't close that gap. It narrows your liquidity and punishes good hooks along with bad ones. However, @KyberNetwork solves this with two layers: 1️⃣ Layer 1 — Dynamic Trade Routing (off-chain): - Scans every pool and DEX on the chain - Splits your trade across the best combination 2️⃣ Layer 2 — Smart Settlement (on-chain): - Sends backup candidate pools along with your transaction - The contract compares them at the moment of execution - Executes whichever actually pays most, right then. This is not about prediction, but about measurement Here's a real example on Base: - User demand: 662,820 BASECAT → USDC - One leg was routed to a vanilla v4 pool that, at execution, would have paid 0.130484408 ETH - Smart Settlement compared it on-chain against a hooked v4 pool paying 1.116392138 ETH (8.5x more) and replaced the bad pool with the better one. - The trade delivered 13,241.92 USDC against an 11,487 USDC floor. Without that on-chain switch it would have dropped below the floor and reverted outright - tnx hash: basescan.org/tx/0x80a1d9a95b… ⚠️ note: On this transaction you'll see an [execution reverted] label, which can be confusing. That's simply Smart Settlement rejecting the vanilla Uniswap v4 candidate and executing the better one. In general, you can't fix quote-time routing by curating the quote. You fix it by deciding on-chain, inside the transaction, at the moment your money moves. 🗒️ For further reading: - Uniswap v4 hooks were a mistake (published by 0x): xitter.cf/0xProject/status/20995… - Go with any hook. Settle with the good one (published by KyberSwap): xitter.cf/KyberNetwork/status/21… - Kyber Dynamic Trade Routing docs: docs.kyberswap.com/developer… - Kyber Smart Settlement docs: docs.kyberswap.com/developer…

Congrats on that! 👏 Time flies. Cannot wait to see the next milestone with +$10M TVL and $1B volume.

APRs look so yummy

My CASHCAT/USDG gets hit badly by toxic flow despite the good GIGA rewards. The team is monitoring this situation. Btw, this is just an experiment for long-tail token with high R/R ratio. If you want to join it, please try with small fund only. Meanwhile, my ETH/USDG is doing great!

Seems like I’m on the right side by accumulating robinhood:0x5baaec1b70864f01dbdb747358ff59f2e2ccf7d5 on the dip ($0.014 at the time of writing). Will switch back to ETH & USDG rewards once $GIGA surpasses $0.02.

Another playbook to farm sh*tcoins with 4-digit APR at the lowest possible risk ----------------------------- ⚠️ Disclaimer: NFA, DYOR LPing meme coins / sh*tcoins often comes with insane yields due to high swap fees, huge volume, and low TVL (because only degens play sh*tcoins). But if you don’t manage your positions carefully, you can end up taking massive losses (even -99% in a single night) because most shitcoins eventually go to zero anyway. Your position could end up holding billions of worthless tokens and almost zero ETH, USDC, or USDG. We’re running an experiment with @brownfiamm oracle-based AMM, and so far, the results have been sooooo good: 1⃣Extremely high capital efficiency. As you can see in the snapshot, the $16K TVL in the CASHCAT/USDG pool facilitated almost $200K in volume, and even reached $300K last Sunday. 2⃣Fees are converted into $GIGA emissions on @giga_dex , which can generate additional yield for LPs (Image 1) 3⃣IL is relatively low, even compared with a Uniswap V3 position with a range from zero to infinity. 4⃣Most importantly, the pool has a built-in inventory limit. We (the BrownFi team) set the maximum pool imbalance between CASHCAT and USDG at 35/65 or 65/35. This means that in the worst case, if CASHCAT goes to zero, LPs can still retain 35% of their USDG exposure, unlike a CLMM or CPMM. And in the best case, if CASHCAT goes 100x or even 1,000x, LPs can still retain 35% of their CASHCAT exposure and ride the pump. (Image 2) Right now, I’m deploying $1,300 of capital into this pool to earn ~1,000% APR in $GIGA emissions. You may want to check this pool, so it's here: gigadex.fi/pool/0x4533d55b88… And if the pool continues to generate meaningful volume and fees over the coming days, the $GIGA emissions should increase accordingly. That’s the GIGA flywheel we want to see in DeFi. 🫡

Play Smart, Not Play Hard In the CLMM LPing game, many LPs are trying to outsmart the market by setting a narrow range. They think they can predict short-term market volatility, earn maximum fees, and remove their positions fast enough to mitigate IL. But in most cases, they’ll end up taking the loss. I personally have to admit that I’m not good enough at predicting volatility. So I decided to choose a low R/R strategy with narrow ranges (and zap in with a single USDC token). I’d rather deploy $10,000 to earn a steady 12% APR than deploy $1,000 to chase 120% APR. And most importantly, this strategy lets me sleep well even when the market crashes in the middle of the night.

Actually, @KyberNetwork solved this issue months ago. When dealing with bad actors or malicious MMs that often advertise quotes that don’t match what users ultimately receive, Kyber adds an “extra” penalty on top of their quoted rates, making them less competitive compared to other sources. As a result, the rate users see on Kyber’s UI is the rate they actually receive.

So sad to see an OG protocol in Defi have to wind down like this.