How to maximize your Raydium LP yields?

ProjectLarix
4 min readDec 27, 2021

Hello! Fellow DeFi farmers!

If this title intrigued you, the guess is that you probably have some Raydium LPs lying around in your wallet address. But did you know, your LPs could actually generate profit for you instead of lying idle? Worried you are not getting every penny you deserve? Rest assured, here is everything you need to know about maximizing your LP yields.

First of all, let’s meet Larix and Raydium.

Project Larix is the first Metaverse-based Finance Protocol on Solana, offering a broad selection of collateral types, including crypto tokens, stable coins, synthetic assets, and NFTs, which can all be fully utilized in a safe way.

Raydium Protocol is an automated market maker (AMM) built on the Solana blockchain which leverages the central order book of the Serum decentralized exchange (DEX) to enable lightning-fast trades, shared liquidity and new features for earning yield.

Here’s the game-changing news, Larix will be the first and only protocol to support Raydium’s LP mortgage lending with auto-compounding. The one and the only on Solana!

Wondering how Larix’s LP mortgage lending is going to help maximize your yields? We’ve summarized everything you need to know below.

  1. Compound Interest through Auto-reinvestments

Through a very carefully calculated algorithm, Larix makes use of automation to continuously invest and reinvest your LP tokens. When you stake Raydium LP tokens at Larix, Larix will put these LP tokens back into Raydium, and auto-reinvest your LP mining rewards from Raydium every 10 minutes. This will result in an increase in LP tokens over time, effectively growing your share in the LP pool, thus increasing your overall earning with compound interests.

2. Fully utilizing released LP liquidity

LPs are treated just like any other collaterals on Larix, this means you could stake LPs to borrow any single token assets (Collateral factors pending). The LP’s liquidity is released back to you, therefore the borrowed assets could be used in whichever way you’d like to maximize your earnings, the possibilities are endless.

Here are some examples of how the released liquidity could be used.

Adding new LP pairs — Once the LPs are staked, you can borrow any single tokens listed on Larix (excluding LPs). For example, if you stake RAY-SOL LP, you can borrow SOL or RAY to pair another RAY-SOL LP, and collateralize the newly formed LP on Larix to borrow more SOL or RAY, so the rinse and repeat goes. This process is called looping, it allows leverage to be added to maximize yields. Using the borrowed single tokens, more LPs could be paired and staked again. On the premise of not being liquidated, your mining rewards will increase about 2–3 times of the original. In fact, the data we run indicating it has increased to 290%.

Single token staking — You can stake the borrowed single tokens at Larix for additional earning.

Other investments — The borrowed single tokens could be used to invest in other projects/ protocols you’d like to support.

3. Additional mining rewards in Larix tokens

To further increase your yields, Larix also provides mining rewards throughout the process of LP mortgage lending. You will be rewarded a mining incentive in LARIX tokens when you stake LPs or any single token assets. In addition, you may also receive multiple rewards from our partners: $RAY by Raydium, $MNDE by Marinade, and $LUNA by Terra, etc. The dual mining activity will be announced at a scheduled time.

If you are interested in trying out this exciting new function brought to you by Larix and Raydium, here’s how to proceed.

First, Click “Liquidity” to pair your LPs on Raydium (https://raydium.io/liquidity/) using the single tokens. For example, use an equal amount of RAY and SOL to pair the RAY/SOL LP.

Once you have the LP pair, head over to Larix (https://projectlarix.com/) and find your LP pair. Click “Support” to deposit your LPs and click “Collateral” to borrow any single token, now you are free to use these tokens to meet your investment needs.

Click on the link to get more detailed tutorials on how to finish the LP mortgage lending.

https://projectlarix.medium.com/a-quick-start-guide-borrowing-assets-against-lp-tokens-20b1e668e7b6

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ProjectLarix

The first Metaverse based Finance Protocol on Solana.