Unit Protocol Integrates Shibaswap's Liquidity Provider Tokens as Collateral
Unit Protocol is on the UP! Now, you can borrow USDP and earn rewards at the same time!
We’re excited to introduce liquidity farming, and to announce Shibaswap liquidity provider tokens (SSLP) as the latest collateral available at UP 🦆
What is Shibaswap?
Shibaswap is a DeFi platform providing such tools as trading, liquidity mining, farming and staking. As an automated market maker (AMM), Shibaswap enables seamless, automated, and decentralized trading using algorithms to price assets in liquidity pools.
SSLP tokens appear in your wallet when you provide liquidity to the Shibaswap liquidity pools. Along with that you earn commissions when the platform users perform respective swaps. SSLP can be also staked in yield farm pools on Shibaswap to earn rewards in BONE tokens.
Liquid farming in Unit
Unit Protocol lets users borrow USDP stable with the SSLP tokens locked up as collateral in the system, and claim rewards in BONE without withdrawing your collateral – all in one DApp!
In effect, by locking SSLP in Unit, you can mint USDP at a borrowing capacity of up to 69% of the overall collateral amount pledged, claim rewards in BONE and keep earning on AMM swaps.
What about rewards?
BONE token takes the role of a governance token. Its ownership grants users the voting power on important proposals. The more BONE tokens holders have, the more voting weight they own, which reflects their power to impact the future decisions on Shibaswap platform.
Leveraged yield farming
And that’s not all! You can significantly increase income on your SSLP tokens by opening a debt position to borrow extra liquidity in form of USDP and then reinvest the extra funds into yield farms. Then you can repeat this loop as long as the borrowing limits allow it. Providing that your asset annual percentage yield (APY) is higher than your loan annual percentage rate (APR), you can increase your profits by multiple times.
Navigate to the section below to go through a detailed example: