Capital Efficiency Surge: What Happens When Lista Allows LP Token Collateralized Lending?
Lista recently launched a feature that left me in awe: it supports mainstream LP Tokens as collateral. This is essentially equipping those farmers who have already provided liquidity on DEXs like PancakeSwap with a "yield turbocharger."
Imagine this: you were originally providing liquidity for BNB/slisBNB on PancakeSwap, earning trading fees. Now, with this LP Token in hand, you can directly throw it into Lista's lending market, use it as collateral, and borrow some lisUSD or other assets. This means that the same asset generates triple returns simultaneously: 1. DEX trading fees; 2. Token incentives from the LP pool itself; 3. Returns generated from reinvesting the borrowed funds after collateralized lending.
I tested the USDT/USDC stablecoin pair and the BNB/slisBNB mainstream pair, which aligns with the trend. By achieving a loan-to-value ratio of about 65%, I directly farmed the borrowed lisUSD into the LISTA reward pool. Overall, the annualized return can jump from about 10% for merely being an LP to over 25%, effectively doubling and more the capital efficiency!
Of course, there's no free lunch in this world. The biggest risk of this strategy lies in amplifying the impact of impermanent loss. If the prices of the two assets in your LP diverge significantly, you will not only endure impermanent loss but may also face the risk of liquidation due to the decline in the value of the collateral. Therefore, my strong recommendation is to prioritize stablecoin pairs or asset pairs like BNB/slisBNB that have a high correlation in price movements. For trading pairs that may experience reverse price fluctuations, using this feature requires extra caution. As soon as this feature was launched, a large amount of "sleeping" LP funds on the BNB Chain were instantly activated, and the surge in Lista's TVL is not without reason. It has truly understood how to play with "LEGO." #usd1理财最佳策略listadao $LISTA
