How to Stake in USDz/USDC LP on Aerodrome
Last updated
Last updated
Currently, staking USDz/USDC LP generates 20 z-points per day.
Once you have minted Anzen USDz on Base you can connect to Aerodrome Finance and you will see 3 different pools available to deposit.
sAMM USDz/USDC Pool
This is our standard stable pool on Aerodrome. You can participate in this pool without actively managing your portfolio, as stablecoins typically remain within the necessary range for fee mining.
Stable pools (sAMM) are a specific type of liquidity pool intended for use with assets that have minimal to no price volatility. The formula used in these pools is designed to maintain low slippage, even in the presence of large trading volumes. The formula is represented as:
𝑥3𝑦+𝑦3𝑥≥𝑘x3y+y3x≥k
A standard fee of 0.05% is charged for this type of liquidity pool.
The mathematical formulas used in both pools aim to maintain a balanced total pool liquidity at all times.
Our concentrated liquidity pool offers higher yields because the ranges are tighter, capturing a higher multiple on generated fees. However, be prepared to actively manage these types of pools, as prices may fluctuate out of range, resulting in no fees during that period. We recommend understanding the mechanics of Impermanent Loss before depositing in this pool.
Concentrated Liquidity Market Maker (CLMM) pools allow liquidity providers to select a specific price range for active trading. Unlike constant product AMM pools, CLMM design enhances capital efficiency and boosts trading fee yields for LPs. It also improves liquidity depth, offering better prices and reduced price impact for traders.
However, CLMMs can increase impermanent loss, so understanding its implications is essential. Efficient capital allocation is possible with CLMMs, but monitoring market fluctuations is crucial to mitigate potential impermanent loss.
Begin by connecting your wallet on Aerodrome and choosing one of the three listed pools.
Select the pool by clicking on the logo or the deposit button next to the LP pool listing.
Deposit the necessary amount of tokens for the Pair. For instance, for sAMM USDz/USDC, you would deposit USDz and USDC in the LP pool.
Grant permission for the transaction to access USDz and the Second Token.
Stake the LP pool on Aerodrome to finalize the position.
You can check your position on the Aerodrome Dashboard for all deposited and staked liquidity. When you deposit LP positions, you will receive AERO tokens as emissions. Don't forget to claim your $AERO on the Liquidity Rewards tab.
📖 Resources
Stake in Aerodrome USDz pools: https://aerodrome.finance/liquidity?query=USDz
Aerodrome Emissions: https://aerodrome.finance/docs#emissions
