TreePod V2 system
TreePods V2 is slightly different because users have to first LP before they can wrap into a pod.
Complete user process:
Provide Liquidity: Users begin by providing liquidity to a traditional liquidity pool, such as BTC/USDT on Camelot or GM tokens on GMX.
Receive LP Tokens: In return for providing liquidity, users receive LP tokens representing their share of the pool.
Wrap LP Tokens in TreePod: Users have the option to wrap their LP tokens into Pod tokens within the TreePod system. This wrapping process ensures that their LP tokens are 100% backed by and redeemable for the original LP tokens. Wrapping/unwrapping costs a small fee as in V1.
Provide Liquidity for TreePod LP: Users then provide liquidity for the TreePod LP pool. They can pair the pod token (which is an LP on itself) against another asset. For example a BTC/USDT lp could be paired against BTC. This arrangement mitigates impermanent loss risks associated with the original liquidity pool because it is now weighted heavier to the BTC side.
Receive Yield: Users receive yield from both their regular LP position in the original pool (BTC/USDT) and the TreePod LP position (tLP/BTC). The additional yield from the TreePod LP position comes from the fees generated by wrapping and unwrapping Pod tokens as explained in step 3.
Last updated