Pooling with DeFiZap.
Introducing new LINK Unipool, LINK LLP, and 2xLINK LLP Zaps.
🚀 Ethereum Bull?
Use LINK LLP or DAI LLP to retain 100% ETH exposure and choose which pool you want to support/generate most fees from based on volume.
🔗 Chain Link Bull?
Use 2x LINK LLP to retain 100% LINK exposure while still generating ETH<>LINK pool trading fees AND doing your part in improving overall liquidity for LINK.
Diversify + earn trading fees using one of our Unipool Zaps.
Trades on Uniswap cause price slippage, especially as trade sizes get larger relative to total liquidity within a pool (example: ETH/LINK trading pair pool) causing more slippage. So for Uniswap to function well and allow large trades it also needs large liquidity pools.
So how does it work?
“Liquidity providers can be anyone who is able to supply equal values of ETH and an ERC-20 token to a Uniswap exchange contract. In return they are given tokens from the exchange contract which can be used to withdraw their proportion of the liquidity pool at any time. Whenever someone trades your pool’s token pairs the trader pays a 0.3% fee which is added to the liquidity pool. Since no new liquidity tokens are minted, this has the effect of splitting the transaction fee proportionally between all existing liquidity providers.” - great summary by Pintail.
As you can see if you are a LINK Bull who wants to keep 100% LINK exposure, you will need to convert half of your LINK to ETH to be able to add liquidity to the ETH/LINK pool (remember you have to supply in equal values of ETH and LINK).
NOTE ON IMPERMANENT LOSS: If LINK doubles in price you still get ~95% of that upside. If it triples in value you get ~90% of that upside. Meaning you will almost always receive around the same # of LINK+ETH that you put in PLUS your portion of generated trading fees up to that second.
But what if you want to capture LINK upside even on the portion you have in ETH which you added to the pool?
Introducing 2X LINK Leveraged Liquidity Pooling.
What if I only have LINK?
You would need to convert it to ETH first but keep in mind after using this Zap you will go back to 100% LINK Exposure plus generate pool fees plus eliminate impermanent loss on the way up while helping LINK liquidity in DeFi.
We are actively working on any ERC20 input as well as:
Pool bridging to help you 1 click switch between pools.
Note: when you use DeFiZap, you mint & receive the same liquidity/position tracking tokens as when separately using Uniswap, Compound, Maker, Synthetix, Fulcrum etc. on your own - just less time wasted.
DeFiZap doesn’t spread your ETH into 'top 10 on coinmarketcap' - Zaps inject ETH into financial protocols built on top of Ethereum, furthering user adoption.
What happens after?
Visit https://uniswap.exchange/remove-liquidity to remove liquidity from Uniswap.
Visit https://fulcrum.trade/#/trade to manage your leverage position.
We can’t wait to launch AntiZaps to help you 1 click withdraw/exit positions from multiple protocols in 1-click back to your preferred asset.
We’ve integrated ENS capabilities to allow users to access DeFi opportunities simply by sending ETH to human-readable addresses directly from their Ethereum wallet. Just input “2XLINKLLP.DeFiZap.eth”, tweak the gas limit to 5,000,000 and boom! You’re now LINK/ETH Pool Liquidity Provider on Uniswap with 100% LINK Exposure.
Everything we’ve done so far has been purely based on constant user feedback, keeping education at the core of our approach.
August 1st, 2019: First tutorial published on DeFiTutorials.com - currently 25 tutorials with 500+ active readers.
September 18th: After getting some feedback, built DeFiStrategies.com educational simulator mvp with no code in a weekend.
October 8: After some more feedback, formulated idea around DeFiZap. Saw Kyber’s hackathon happening around that time. Reached out on Kyber Discord looking for help. Started working with Dipesh + Tosh.
November 12: DeFiZap Wins #KyberDeFi Hackathon.
December 9: Zaps deployed on mainnet. Observing a pain-point some users experience when interacting with Uniswap Pools we created Unipool Zaps. Suhail from DaiEmbassy joined us.
1 Month since official launch:
💸 3500+ ETH deployed into DeFi
🥰 by 245 unique users
⚡️ via 705 Zaps
❌ 3631 txs eliminated
🕑 60.5 hours saved for end-users.
If you like our efforts, consider supporting us on Gitcoin. As of this writing, 1DAI contribution gets matched by 124DAI!!! https://gitcoin.co/grants/235/defizap
Our new 2x LINK LLP Zap includes a small convenience fee used to improve our development and educational efforts which further user adoption in DeFi. We have big plans to help democratize access to making a living from creating financial instruments and are extremely excited to build this together with you.
and more on our website DeFiZap.com