Thread by @flyacro

9 1/2 events that will make skyrocket your LP returns @thorchain_org to the moon in the upcoming months

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To fully grasp the ideas in the thread below, we need to understand what causes LPs to generate yield:

- Swap volume – higher swap volume leads to higher fees
- Size of swaps – larger swaps generate larger fees

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- Incentive pendulum – the proportions of capital bonded in the network by the nodes to the capital pooled (historically over-bonded)
- Change in asset price – changes the yield and triggers the arb bots
- Block rewards – when a block is produced the active pool receives a reward

In a nutshell any and all of the above activities generates the fees based on participation and activities within the liquidity pools. With that understanding let's examine the 9.5 upcoming events that are going to increase your already high returns:

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1. Multichan Chaosnet (MCCN) will be launched in the next 2-3 weeks. That means you will be able to pool native $BTC $ETH $BCH $LTC $BNB. The value of connected markets ($1.4T)is at least 30x of the value of the current BNB market. This should be a nice boost for LPs

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2. Tunable Incentive Pendulum (medium.com/thorchain/week…) – the new pendulum right of the box will increase the LPs revenue by up to 50% until the network is no longer over-bonded

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3. Synths - @thorchain_org synthetic assets are primitives for both higher-order financial features and fully-secured, fully-backed synthetic assets. The act of creation and usage causes LPs to profit. gitlab.com/thorchain/thor…

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4. Lending - users can lock Liquidity Units or Synths into Collaterised Debt Positions (CDPs), and draw out debt from any pool in THORChain, using the purchasing power of RUNE. The interest(!) accrued and the acts of creation, payments and redemption all benefit LPs

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5. Composites - THORChain composites are comprised of multi-asset pools containing curated synthetic assets. The liquidity token issued when a member adds liquidity becomes the composite asset, since it retains redemption power at all times. All activities benefits the LPs

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6. IBC – @Thorchain_org and all protocols that leverage fast finality blockchain engine (like Tendermint) will be able to connect with each other using #IBC. This will create a significant traffic in and out of the @thorchain_org protocol thus creating profits for LPs

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7. Asymmetric liquidity provision and withdrawal – any asymmetry leads to slip that leads to arb and that benefits the LPs

(gitlab.com/thorchain/thor…)

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8. Pool curation - standby pools will be charged 100 RUNE every churn (2 days), until ultimately they run out of money and are purged off the network. The money goes to LPs (medium.com/thorchain/week…)

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9. Upcoming integrations with wallets and exchanges – this will drive a lot of transaction volume to benefit LPs

sushiswapchef.medium.com/2021-3e1f45cf8…

erikvoorhees.medium.com/no-more-kyc-wi…

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9 1/2 Impermanent loss protection - Impermanent Loss Protection ensures LPs always either make a profit, or leave with at break even after a minimum period of time (set at 100 days), and partially covered before that point: medium.com/thorchain/week… (gitlab.com/thorchain/thor…)

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To sum it all up - liquidity provision (LP) is about to become the easiest (and surest) way to multiply your money.

And do not forget that we are dealing with the emerging technology. @thorchain_org can connect to anything as long as it has the economic significance.

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In a short future it may not be a pure crypto – it may be a stock from NASDAQ or some other financial construct, as long as it is on a public chain.

We are are all early and @thorchain_org is a futur of france

/fin