Decentralized finance (DeFi) protocol VVS Finance is making it easier for liquidity providers to access and remove their funds.
The DeFi protocol has introduced “Pool Insights” and “Smart LP Removal” to help alleviate impermanent loss. In addition, VVS Finance stated that users can view their liquidity information and set target conditions for LP removal whilst still earning VVS rewards.
Furthermore, the team added that the “Smart LP Removal” function allows liquidity providers to manage their exit strategies. They can manually set the conditions on when to execute the LP removal from the platform. Also, users can still earn rewards while they are waiting for those conditions to be executed.
1/ No one likes Impermanent Loss, that’s why we’re excited to introduce Pool Insights and Smart LP Removal (Beta) to help combat it!⛏️
View your liquidity info and set target conditions for LP removal whilst still earning VVS rewards💎
More details: https://t.co/GL0Wx4T8SA
— VVS Finance (@VVS_finance) January 31, 2022
Smart Liquidity to Combat IL
LPs can also view their current yields on the LP tokens they have deposited and “harvest their rewards at their convenience.”
Additionally, clients can view pending Smart LP Removal orders waiting to be executed via the newly introduced “My Liquidity” tab. The platform introduced the new functionality to help alleviate impermanent loss.
Impermanent Loss (IL) is the difference between just holding tokens in a wallet and the value of the tokens received back when liquidity is withdrawn. Therefore, it has been the bane of many DeFi yield platforms over the past year or so, especially those seeking passive income.
The Pool Insights function allows LPs to access personalized statistics to monitor their Crystal Farms performance, it added. Furthermore, there are two categories of information: overall liquidity information and pair deposit stats.
VVS Finance is an automated market-making (AMM) platform based on the Crypto.com Cronos network. It has $1.29 billion in total liquidity according to the protocol dashboard. Interestingly, the top pool on the platform by volume is WCRO/USDC, which offers 7.57% in annual percentage yield.
VVS Token Price Outlook
Like most DeFi protocols, VVS Finance features its own native token, VVS, which is used for liquidity rewards. The token was trading up 5% on the day at the time of writing, according to CoinGecko. As a result, they were changing hands for $0.00003.
However, the exchange token has had a rough ride over the past couple of months, dumping 91% from its November 15 all-time high.
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