A Quick Start Guide: Borrowing Assets Against Lp Tokens

3 min readDec 29, 2021


Take RAY-SOL’s LP as an example:

If you already have SOL and RAY in your wallet, you can skip the “Swap” part and jump directly to adding liquidity (Step 3).

  1. Visit https://raydium.io/swap/, enter the value and token you want to exchange. For example, I want to exchange SOL for some RAY:

2. Click “Swap” to exchange.

3. After the exchange, jump to the “Liquidity” to start adding liquidity. Select the token “SOL” and “RAY” and enter the value in the box. (Note that RAY and SOL need to maintain the same value).

4. Click “Supply” to add liquidity.

5. After successfully adding liquidity, you can check the paired “RAY-SOL” LP in the “Your Liquidity” section.

6. Visit Larix official website (https://projectlarix.com/), click “Dashboard”, you will find “RAY-SOL” listing in the Raydium LP section. By clicking “supply” you are depositing “RAY-SOL” in Larix.

7. After depositing “RAY-SOL”, the LP will be shown in the “My Bill” section of the Dashboard.

8. Simply click “Collateral”, now you can borrow other single tokens against your collateral. In this case, the collateral is RAY-SOL LP.

Maximizing your return after borrowed token against your LP:

1. Pair up new LP: The borrowed single token can be paired into a new LP. You can borrow a single token against the new LP token again, and pair up another LP for additional lending. By repeating this, you will be able to multiply your mining rewards.

For example, after you collateralize RAY-SOL LP, you can borrow RAY or SOL to form a new RAY-SOL LP, and collateralize the newly paired LP again to re-borrow the RAY or SOL to pair another LP. Under the premise of not being liquidated, your mining rewards will increase by 2–3 times compared to the original amount of investment.

2. Single token Staking: You can stake your borrowed single tokens in Larix to earn more rewards.

3. Alternative investment: The single token borrowed after collateralizing the LP can be used for any investment, such as long BTC.