Simplifying Liquidity Provision in DeFi
Bebop’s signature one-to-many trading simplifies liquidity provisioning in DeFi by allowing users to easily obtain equal amounts of different assets to LP in one simple trade, saving you on time and gas fees.
LPing in DeFi
Liquidity provision is an important concept in decentralized finance (DeFi), where users can earn yield by providing liquidity to trading pairs on decentralized exchanges (DEXs) that follow the model of AMM pools. When you become a Liquidity Provider (LP), you deposit equal values of two different assets into a pool, which becomes a trading pair on the DEX. Other users can then trade these assets against each other, and the LP earns a portion of the trading fees proportional to their share of the liquidity pool. This is their reward.
But to become an LP, you need to have amounts of equal value of the two assets in the trading pair. For example, if you want to provide liquidity for the WBTC/DAI pair, you will need to have an amount of equal value of WBTC and DAI. This can be challenging if you only have one of the assets, or if you don’t have equal values of the two assets you are trying to contribute. In that case, you would need to trade to obtain the initial funds to add to the liquidity pool.
How Bebop can help
This is where Bebop’s innovative one-to-many transactions come in!
Bebop follows an RFQ on-chain model, meaning (at least right now) it does not have any pools for users to contribute to. Instead, Bebop utilizes private market makers to facilitate trading on the platform.
But we can help you LP with our signature one-to-many trades. By using this feature on Bebop, you can easily obtain equal amounts of different assets for LP in one simple trade. Instead of having to complete two separate transactions, like trading USDC for DAI and then trading more USDC for an equal amount of WBTC, you can complete both trades in one go. This is particularly helpful for LPs who want to optimize their yield by providing liquidity to multiple trading pairs, as they can quickly obtain the assets they need without the hassle of multiple trades.
Bebop’s one-to-many trades offer several benefits for users trying to LP, including:
- Lower gas fees: By consolidating multiple trades into one, Bebop users can save up to 60% on gas fees, which can add up quickly for frequent traders.
- Faster execution: Bebop’s one-to-many trades are designed to be fast and efficient, allowing users to complete up to five trades in one, directly on our platform.
- Equal splits for LP: Bebop’s one-to-many trades ensure that users obtain equal amounts of the assets they need for LP, making it easier to become an LP and maintain a balanced portfolio.
- No native token required for gas: On Bebop, the gas for your trade is deducted in the token you are trading. Meaning you don’t need any of the chain’s native (i.e. ETH or MATIC) to complete a trade.
- Get the exact amount: Because there is no slippage and gas is included in what you are paying on Bebop, the exact price you see is the price you get. This means, not only are you able to get an equal split, but there won’t be any surprises regarding the amount that actually ends up in your wallet.
Try it out for yourself
Bebop is currently open to the world for trading on Ethereum, Polygon, and Arbitrum.
Visit bebop.xyz to try our signature one-to-many or many-to-one trading today and see how these features can simplify your LP experience!
