Impermax Brings Leveraged Yield Farming To Sushiswap on Polygon
Impermax is pleased to announce the launch of leveraged yield farming for SushiSwap on Polygon!
Leveraged Yield Farming Allows Much Higher APYs
Leveraged yield farming lets farmers borrow funds to increase their farming positions on supported token pairs. With borrowed funds, farmers can increase their yields by 20x, and even up to 50x, depending on the LP pair’s volatility. The protocol distributes a share of the yield to the lenders and the protocol reserves, and the borrower keeps the rest. The borrower can de-leverage at any time by paying back the funds.
Protocol reserves are distributed to IMX token holders as staking rewards. Borrowers also automatically earn IMX farming rewards.
Indirect Liquidity Providing Allows Lower Risk
Impermax is also the first platform to offer indirect liquidity providing on SushiSwap, which means liquidity providers can earn yield with a single token deposit and no impermanent loss risk.
How does Impermax eliminate impermanent loss? An indirect liquidity provider is a lender. They deposit funds that are borrowed by other liquidity providers to multiply their yields, as noted above. The yields are shared with the lender. So the lender is earning yield indirectly through borrowers.
If the potential impermanent loss becomes too high, the borrower’s position is liquidated and 100% of the lender’s funds are returned. Because the lender’s funds are protected, even in a worst-case-scenario, all the IL risk is borne by the borrowers.
Liquidity Providing With a Single Deposit
People who want to try liquidity providing traditionally have had to go through a process to learn the steps of acquiring and depositing two tokens to a DEX for a pair. Impermax’s indirect liquidity providing simplifies the process. Users make a single token deposit on Impermax that will immediately start earning yield in that same token. This makes liquidity providing more accessible to a broader range of users.
About Impermax.finance
Impermax aims to be DeFi’s top platform for Liquidity Providing lending services. Since its launch on Uniswap V2 in March 2021, the Impermax dapp has consistently provided the highest leveraged Liquidity Providing APYs in DeFi. Its contracts have been audited by Certik and Cyber Unit.
About Polygon
Polygon is an easy-to-use L2 scaling platform for the Ethereum network. Assets can easily move between Ethereum, Polygon, and other protocols using decentralized bridges, effectively connecting the entire cross-chain DeFi ecosystem.
About Sushiswap
Sushiswap is a top decentralized exchange that allows exchange of any ERC20 token with any other token, as well as providing many other DeFi functions. Sushiswap on Polygon currently has over $400,000,000 USD in total liquidity, with over $40,000,000 in average daily trading volume.
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