TL;DR — New Jar for Liquity’s LUSD holders in collaboration with B.Protocol. With our combined autocompounding magic, APYs are >20% for stablecoin yield 🤑.
B.Protocol Integration 🤝
We are happy to announce a special collaboration with B.Protocol, a next-generation DeFi protocol that aims to optimise and automate the lending platform experience.
B.Protocol’s V2 design features B.AMM, a fully autonomous vault-like smart contract that manages liquidations for users, allowing for better capital efficiency across DeFi lending protocols.
We at Pickle are proud to provide our very own contribution to this advanced set of “money legos” with a ‘pickled’ version of their latest integration.
B.Protocol x Liquity 💧
As explained in this post, B.Protocol has recently integrated with Liquity to offer truly-passive APY to holders of the LUSD stablecoin. With the help of B.AMM, LUSD ‘stability providers’ won’t need to manage their ETH liquidation ‘rewards’ at their own time and expense.
What about Pickle? 🥒
For those familiar with Liquity’s Stability Pool, you may be wondering about the LQTY rewards. This is where Pickle comes in. Whereas B.AMM gives user their LQTY rewards intact upon withdrawal, the pickled version of B.AMM (PBAMM, if you will), ‘pickles’ that LQTY for an end-to-end, truly passive stablecoin yield strategy.
The new Jar, accessible here, operates as follows:
- The Jar accepts users’ deposits in LUSD
- The LUSD is deposited into B.Protocol’s PBAMM contract, which in turn deposits it to Liquity’s Stability Pool and mints a share token for the user
- Whenever liquidations occur in the Stability Pool, a portion of the user’s LUSD is swapped for ETH at a premium. B.Protocol automatically sells that ETH back for LUSD and deposits it back in the pool. This has the dual effect of 1) preserving stablecoin capital, and 2) compounding users’ positions
- LQTY (Liquity’s secondary token) rewards are given to depositors, and are automatically deposited in Pickle’s pLQTY jar
- Under Pickle’s care, the LQTY deposits earn LUSD and ETH fees, which are automatically sold & compounded for more LQTY
As a bonus, users are encouraged to stake their pLQTY rewards from PBAMM in our farms in order to receive additional PICKLE (PICKLE yield range is 4.23–10.57% for pLQTY, depending on DILL boost at the time of writing) on top of their jar yield.