How to leveraged-yield farm (LYF) Thorus’ assets on Impermax!
In a previous article, we announced our partnership with Impermax Finance, a platform that gives one-click access to DeFi yield farming on Avalanche network with no risk of impermanent loss.
Even better, Impermax offers Leveraged Yield Farming and LP auto-compounding features to the Thorus platform’s users! In this article, we’re going to explain you how to borrow Thorus’s assets on Impermax to increase your yields using leverage.
But before, if you don’t know what LYF is, we recommend that you read this article first:
Let’s get started!
In short, here is what you will need to do:
- Check on Impermax the Thorus’ LP pair that suits your needs.
- Build it on the Thorus App.
- Stake it in the corresponding Impermax pool.
STEP 1: Choosing the LP pool you will farm on Impermax
1- Go to the Impermax MARKETS section, and look for the Thorus LP you want to farm. If you want to use a leverage, you’ll need to check if there are enough tokens that can be borrowed for each asset (calculation: Total Supply - Total Borrowed).
In our example, the STATIK-USDC.e stable pair has enough supply to allow leveraging and offers a decent APR at very low risk. Therefore we will choose this one!
STEP 2: Building your LP pair on Thorus
1- Now that you know which pair you will farm, it’s time to build it on Thorus. So, go to the Thorus FARM section and once you have found the desired pair, click on it.
2- Select the “LIQUIDITY” tab (1), type an amount or click “MAX” on the asset’s field where you have the fewer tokens (2) to balance automatically your pair (it must be 50/50 USD value). Then APPROVE both tokens if it’s the first time you build this LP pair, and finally confirm your choice by clicking on “CONFIRM ADDING LIQUIDITY” (3).
3- A window will pop up, displaying the summary of your LP. Click “CONFIRM SUPPLY” (4). You now have your LP tokens ready!
STEP 3: Staking with leverage your LP tokens on Impermax
1- Go back to Impermax and click on your pair (eg: STATIK-USDC.e). Select “DEPOSIT” (1).
2- Type the amount you want to stake, or simply click “MAX” (2). Click “APPROVE” (3) then click “DEPOSIT” (4).
Your LP tokens are now deposited on Impermax and start generating yields! Which means you are earning more LP tokens due to the Impermax’s auto-compounding function (learn more about this in our previous article).
3- If you want to increase your farming position, it’s time to add a leverage by borrowing some assets. On your LP page, click “LEVERAGE” (5).
4- Select the leverage (6) depending on the Estimated APR that you wish to gain. Click “APPROVE” for both tokens (7). Then, click “LEVERAGE” (8) and confirm the transaction.
Congrats, your position is now bigger thanks to the leverage!
STEP 4: Monitoring your position
If you want to monitor your position, go to the DASHBOARD section of Impermax and select the position you’ve just created. Your “Net Balance” is the difference between your LP Balance including leverage and the assets you have borrowed to increase your position (that you will need to repay when you withdraw your position).
If you want to deleverage or withdraw your LP tokens, click on your position and choose “WITHDRAW” or “DELEVERAGE” instead of “DEPOSIT” or “LEVERAGE” (that are described in STEP 3). The manipulation is the same, but on the other direction!
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