Liquidity Provision (LP)
Last updated
Last updated
The LP strategy automates the complicated process of opening a leveraged Uniswap v3 position on any asset supported by Zeru. Liquidity is deployed at an optimal price as selected by Zeru’s AI system. By accessing up to 15x leverage even on a ZCL balance, profitable LP strategies will return a higher APY. Plus, the earn rate of CTs and ZScore growth will also be boosted. You can also earn Zeru points!
How to Use Uniswap V3 LP Strategy in Zeru
1. To use Uniswap V3 LP Strategy users should have collateral in their wallet or collateral deposited in the lending pool or credit tokens
2. Performing Actions to use Uniswap V3 LP Strategy
Open Position
In the Market page, click leverage on the asset you want to use as collateral for your uniswap V3 strategy, then select LP Pools.
Select the pool in which you want to provide liquidity based on the Pool APR
Enter the amount you want to use as collateral, if you want to use collateral which is already deposited in lendingpool then click transfer from lendingpool icon on top of the input bar then enter the amount, if you wish to use your credit tokens then you can click on the credit amount available inside the input bar to use credit as collateral
Then select the leverage you want to take, which will automatically update the borrow amount
The more leverage you take the more your Health factor comes near to 1, which increases risk of liquidation of your position
Verify the details in the transaction overview then approve the token and confirm the transaction
Click Open Position and confirm the transaction
Update Position
On the Strategies page, click the LP Pools radio button on the left, then click the action button on the position you want to update the collateral then click update.
Enter the amount you want to add as collateral, if you want to add collateral which is already deposited in lendingpool then click transfer from lendingpool icon on top of the input bar then enter the amount, if you wish to use your credit tokens then you can click on the credit amount available inside the input bar to add credit as collateral
Verify the details in the transaction overview then click Update Position and confirm the transaction
Close Position
On the Strategies page, click the LP Pools radio button on the left, then click the action button on the position you want to close then click update.
After reviewing the position information, click close position