Impermax Brings Leveraged Yield Farming To Arbitrum’s SushiSwap
Impermax is pleased to announce that leveraged yield farming is now available also on Arbitrum for SushiSwap! Users on Arbitrum will now be able to use their SushiSwap’s SLPs as collateral on Impermax in order to leverage their farming positions.
The supported SLPs include ETH-NYAN, the Arbitrum “meme token” project with over $1.5B in TVL. The ETH-NYAN SLP currently yields over 3200% APR mostly due to the NYAN farming reward. Users on Impermax can now leverage their ETH-NYAN positions up to 3x in order to get a much higher and auto compounded return.
Using Impermax on Arbitrum
Arbitrum is a L2 scaling solution based on optimistic rollups. You can deposit and withdraw ETH, IMX and many other tokens using the official Arbitrum bridge: https://bridge.arbitrum.io/ (please notice that by Arbitrum design the withdrawal time is currently of 7 days).
You can access to Impermax on Arbitrum at the following link: https://arbitrum.impermax.finance/
IMX contract address on Arbitrum: 0x9c67eE39e3C4954396b9142010653F17257dd39C
Leveraged Yield Farming Allows Much Higher APYs
Leveraged yield farming lets farmers borrow funds to increase their farming positions on supported token pairs. With borrowed funds, farmers can increase their yields by up to 50x, depending on the LP pair’s volatility. The protocol distributes a share of the yield to the lenders and the protocol reserves, and the borrower keeps the rest. The borrower can de-leverage at any time by paying back the funds.
Protocol reserves are distributed to IMX token holders as staking rewards. Borrowers also automatically earn IMX farming rewards.
Indirect Liquidity Providing Allows Lower Risk
Impermax is also the first platform to offer indirect liquidity providing on Arbitrum, which means liquidity providers can earn yield with a single token deposit and no impermanent loss risk.
How does Impermax eliminate impermanent loss? An indirect liquidity provider is a lender. They deposit funds that are borrowed by other liquidity providers to multiply their yields, as noted above. The yields are shared with the lender. So the lender is earning yield indirectly through borrowers.
If the potential impermanent loss becomes too high, the borrower’s position is liquidated and 100% of the lender’s funds are returned. Because the lender’s funds are protected, even in a worst-case-scenario, all the IL risk is borne by the borrowers.
Liquidity Providing With a Single Deposit
People who want to try liquidity providing traditionally have had to go through a process to learn the steps of acquiring and depositing two tokens to a DEX for a pair. Impermax’s indirect liquidity providing simplifies the process. Users make a single token deposit on Impermax that will immediately start earning yield in that same token. This makes liquidity providing more accessible to a broader range of users.
Impermax aims to be DeFi’s top platform for Liquidity Providing lending services. Since its launch on Uniswap V2 in March 2021, the Impermax dapp has consistently provided the highest leveraged Liquidity Providing APYs in DeFi. Its contracts have been audited by Certik and Cyber Unit.
Impermax currently supports dozens of token pairs on Uniswap V2, Quickswap, and Sushiswap, and is live on Ethereum, Polygon and Arbitrum. Plans are in place to support all top DEX platforms.