Your ultimate guide to becoming Entangled
The DeFi ecosystem potential has been limited due to the lack of utility and composability of Yield Assets. Pre Entangle, you would provide liquidity, receive an LP Token and stake it on a yield farm - this is typically where the journey would end. With Entangle, we expand DeFI by facilitating utility for your yield assets. Users can now supercharge yield and protocols increase liquidity retention.
Follow closely as we take you on a 4 stage journey and transition you to a true DeFi Scientist.
Stage 1
User provides liquidity and receives LP token
Stage 2
User provides liquidity and receives LP token
Stage 3
User provides liquidity and receives LP token
Stage 4
User provides liquidity and receives LP token
1
Concept
Liquidity Provision
When you provide liquidity, you receive a receipt of deposited assets in the form of an LP Token.
For example, if you provided 1000 USDC on Stargate, you would receive an LP Token as a receipt from Stargate.
Your LP Tokens accrue revenue with fees on Stargate. This example showcases a hypothetical APY of 20% based on fees.
2
Obtaining further yield
Staking LP Tokens in a yield-farm
Upon obtaining an LP token, the common practice is to stake it on a yield-farm in order to enhance the yield, often in the form of the platform's governance tokens. In this scenario, the reward tokens will be in the form of Stargate Token Emissions.
This example showcases a hypothetical APY of 20% based on fees alone accrued in USDC + in addition LP Token Staking Rewards accrued in Stargate Tokens.
3
Liquid Vaults
Liquid Staked Derivatives (LSDs)
LSDs have been gaining popularity due to the enhanced yields they generate. Traditionally, these LSDs have used ETH as the underlying asset for their LP tokens. However, with the introduction of Entangle's Liquid Vaults, you now have the flexibility to use any yield-bearing asset, including LP receipt tokens, for conversion into composable LSDs.
Here is the standard procedure for a user providing LP tokens into a yield-farm.
With Entangle - you can stake the LP Token to receive an LSD!
Our Liquid Vaults enhance your yield by facilitating secondary utility to your LP tokens, transforming them into LSDs.
This illustration explains the back-end process when you stake LP tokens through Entangle: Entangle stakes and automatically compounds them within a smart contract, then issues the user an LSD as a receipt of your staked tokens.
4
Secondary Utility
Supercharge your yield
Transforming your assets into LSDs introduces a secondary utility for them. This adds another layer in your yield-farming strategy by utilizing LSDs as collateral to access supercharged yields.
- Benefits for users: increased yield, greater utility for assets, intra & cross-chain transferability
- Benefits for protocols: increased TVL, new products, increased liquidity retention, access to intra & cross-chain liquidity
If you spot better yield or lending & borrowing options on other blockchains - you can also transfer the LSD to another blockchain!
The Entangle platform streamlines the process for users, offering them the ability to conduct both intra-chain and cross-chain transactions of their LSD via our single dApp, Liquid Vaults.
Step 1 | Concept
When you provide liquidity, you receive a receipt of deposited assets in the form of an LP Token. For example, if you provided 1000 USDC on Stargate, you would receive an LP Token as a receipt from Stargate.
Your LP Tokens accrue revenue with fees on Stargate. This example showcases a hypothetical APY of 20% based on fees.
Step 2 | Obtaining further yield
Upon obtaining an LP token, the common practice is to stake it on a yield-farm in order to enhance the yield, often in the form of the platform's governance tokens. In this scenario, the reward tokens will be in the form of Stargate Token Emissions.
This example showcases a hypothetical APY of 20% based on fees alone accrued in USDC + in addition LP Token Staking Rewards accrued in Stargate Tokens.
Step 3 | Liquid Vaults
LSDs have been gaining popularity due to the enhanced yields they generate. Traditionally, these LSDs have used ETH as the underlying asset for their LP tokens. However, with the introduction of Entangle's Liquid Vaults, you now have the flexibility to use any yield-bearing asset, including LP receipt tokens, for conversion into composable LSDs.
Here is the standard procedure for a user providing LP tokens into a yield-farm.
With Entangle - you can stake the LP Token to receive an LSD!
Our Liquid Vaults enhance your yield by facilitating secondary utility to your LP tokens, transforming them into LSDs.
This illustration explains the back-end process when you stake LP tokens through Entangle: Entangle stakes and automatically compounds them within a smart contract, then issues the user an LSD as a receipt of your staked tokens.
Step 4 | Secondary Utility
Transforming your assets into LSDs introduces a secondary utility for them. This adds another layer in your yield-farming strategy by utilizing LSDs as collateral to access supercharged yields.
Benefits for users: increased yield, greater utility for assets, intra & cross-chain transferability- Benefits for protocols: increased TVL, new products, increased liquidity retention, access to intra & cross-chain liquidity
If you spot better yield or lending & borrowing options on other blockchains - you can also transfer the LSD to another blockchain!
The Entangle platform streamlines the process for users, offering them the ability to conduct both intra-chain and cross-chain transactions of their LSD via our single dApp, Liquid Vaults.