The Upgrade Creates Single Vaults that Optimize Stablecoin & ETH Liquidity Provider Returns across Multiple Pools like Lido, Rocket, and Aave, Benefiting Users From an Up-Tick in LP Fees Following an Increase in Rate Market Volatility
LONDON, Nov. 22, 2022 /PRNewswire-PRWeb/ — Voltz Protocol, DeFi’s first synthetic interest rate swap (IRS) AMM, and Mellow Protocol launch an upgrade to the programmatic liquidity optimizer, enabling users to deploy stablecoins and ETH into single vaults then optimize returns by deploying those assets into various LP strategies on Voltz Protocol. Voltz Protocol has multiple pools that users can trade rates on, made up of underlying markets on protocols like Lido, Rocket, and Aave. This upgrade to the Voltz-Mellow LP Optimizer provides a turnkey, index-style solution that lets traders earn passive yields sourced from liquidity provider fees.
With ETH staking yields recently skyrocketing to over 10% and with the volatility of rates across DeFi increasing, trading activity on Voltz Protocol has significantly increased, creating opportunities for LPs to generate substantial returns. Until now, traders could only deploy assets into one stETH LP Optimizer or spend time optimizing LP parameters on Voltz Protocol themselves (such as tick ranges, leverage and what pool to provide liquidity to). Now, with the upgraded LP Optimizer, this process has been simplified, allowing users to choose an asset and maturity date and then let the optimizer do the rest by programmatically allocating assets into various LP strategies across Voltz Protocol. This upgrade provides a way for traders to capitalize on the increase in LP fees, caused by more volatile markets, in a capital-efficient and passive manner.
Simon Jones, CEO & Co-Founder of Voltz Labs, said, “When the Mellow LP Optimizer first went live, which gave traders the opportunity to earn passive LP fees on the stETH pool on Voltz Protocol, we knew there would be opportunity to upgrade it in the future to improve returns whilst diversifying risk. The upgrade to our LP Optimizer helps traders benefit from a diversified source of LP fees in a passive and programmatic way.”
The Voltz-Mellow LP Optimizer was initially launched as Proof-of-Concept with one pool on Voltz Protocol, stETH. Following the success of that launch, the LP Optimizers have been upgraded to allow users to simply choose one asset and maturity date (e.g. ETH, 31 Dec) and the Optimizer will then programmatically allocate liquidity to all ETH pools in Voltz Protocol that mature on 31st December. This update simplifies the process for traders wanting to access LP returns on Voltz Protocol, whilst providing potential to increase returns whilst diversifying risk. These upgraded LP optimizers will cover all pools available on Voltz Protocol, meaning there will be vaults for ETH, USDC, DAI, and USDT.
For media inquiries, please contact Phil LeRoy at (310) 260-7901 or phil(at)melrosepr(dot)com.
About Voltz Protocol
Voltz Protocol is DeFi’s first synthetic interest rate swap AMM and is up to 3,000x more capital efficient than alternative models. Interest rate swaps are a core pillar of TradFi, involving over $1,000tn notional exchanged each year, but have previously been accessible only to banks and other institutions. Voltz Protocol puts the power of rate trading into the hands of everyday traders and developers, ushering in a new era of composable, permissionless, and open-source financial products.
Phil LeRoy, Melrose PR, 310-260-7901, [email protected]