LPing

Liquidity provision strategies across Curve, PancakeSwap, and more

Overview

Liquidity provision (LP) strategies allow users to provide liquidity to DEXes and earn trading fees plus potential incentive rewards. Yield.xyz integrates with LP opportunities across major decentralized exchanges.

LPing carries impermanent loss risk. Asset ratios in your position may change as prices fluctuate, potentially resulting in lower value than holding the assets separately.

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Supported Protocols

Curve

Stablecoin, LST, and pegged asset pools with optimized bonding curves

PancakeSwap

Concentrated liquidity (V3) pools across BNB Chain, Ethereum, Base, Arbitrum

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How LPing Works

1. Provide liquidity

   Deposit one or more assets into a liquidity pool

2. Receive LP tokens

   Get tokens representing your share of the pool

3. Earn fees

   Trading fees from swaps accrue to LP token holders

4. Claim rewards

   Some pools offer additional incentive token rewards

5. Exit position

   Redeem LP tokens to receive underlying assets plus earned fees

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Quick Reference

Protocol	Networks	Pool Types	Rewards
Curve	ETH, Arbitrum, Optimism, Base, Polygon, Avalanche, Sonic	Stablecoin, LST/LRT, Tricrypto	Trading fees
PancakeSwap	BNB Chain, Ethereum, Base, Arbitrum, Monad, Linea	Concentrated liquidity (V3)	Trading fees, CAKE

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Key Considerations

Impermanent loss

LPs are exposed to relative price movements between assets. Concentrated liquidity (PancakeSwap V3) can increase IL magnitude for tight ranges during strong moves.

In-range vs out-of-range

Concentrated liquidity positions only earn fees when the pool price is inside your configured range. Out-of-range positions become one-sided.

APY variability

LP APY depends on trading volume. High-volume periods generate more fees; low-volume periods generate less. APY is not fixed.

Pool composition

Stablecoin pools have lower IL risk. Volatile pairs carry higher risk but potentially higher fee generation.

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Example Flow

Get LP yield metadata

curl --request GET \
  --url https://api.yield.xyz/v1/yields/ethereum-3crv-0xbebc44782c7db0a1a60cb6fe97d0b483032ff1c7-curve-lp \
  --header 'accept: application/json' \
  --header 'x-api-key: <API_KEY>'

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See Also

Vaults

Automated vault strategies

DeFi Overview

All DeFi categories