When a user tokenises their yield, they may want access to a liquid form of the principal and yield immediately. To enable this, we use the DEX Curve.finance to ensure a large amount of liquidity is always available to swap in/out of the associated PT.
We're currently building something special for liquidity of Yield Tokens. Stay tuned! 👀
The liquidity on the Curve.finance pools comes from Liquidity Providers, who supply one or both sides of the pool with assets. By doing this, they can earn trading fees each time a swap is made on the Curve pool.
The easiest and quickest way to supply liquidity is to use our Router.
An overview of zapping in with an IBT
The relevant allowance of the token must be approved for the Zapper contract before depositing.
Alternative: Depositing directly via Curve
Alternatively, you can deposit directly into the associated Curve pools. However this is more difficult and may take longer as you calculate the optimal amount of IBT and PT to convert and deposit. See the official Curve documentation here.