Ankr Partners with SushiSwap for a new Stable Liquidity Pool Using BentoBox to Boost Rewards
November 5, 2022
2 min read
Ankr is excited to announce a new partnership with SushiSwap – the fully decentralized exchange that recently launched Stable Liquidity Pools as a complement with its existing automated market making (AMM) pools. Under our collaboration, SushiSwap is launching a Stable Liquidity Pool in combitination with BentoBox for MATIC and aMATICc liquid staking tokens, significantly reducing the capital inefficiency of liquid staking liquidity pool.
BentoBox is a vault that enables SushiSwap to perform very conservative strategies to generate yield on deposited tokens in BentoBox by depositing these tokens on dApps such as Aave. Combining Stable Liquidity Pools and BentoBox will enable liquidity providers to earn lending interest on MATIC, while continuing to benefit from Liquid staking rewards from aMATICc, swap fees from SushiSwap (0.05%) and farming rewards. Furthermore, funds in Bentobox can also be used for flash loans to generate a small fee, thus generating extra yield.
The mechanisms of the BentoBox will see about 70% of the MATIC tokens lent through Aave and generating interest. The remaining 30% will be kept in the liquidity pool and freely used to swap between aMATICc and MATIC.
Currently, the main source of yield in liquidity pools comes from swap fees and farming rewards. However, the portion of swap fees does not compensate the opportunity cost of no longer staking half of MATIC in the liquidity pool when compared to simply staking MATIC.
Ankr’s goal has been to attempt to reduce the capital inefficiency of liquid staking liquidity pools by finding innovative solutions through DeFi partners such as SushiSwap to reward liquidity providers by enabling them to access additional yield in a sustainable way by fully using the benefits of DeFi composability.
What is Unique About Ankr and SushiSwap’s BentoBox
BentoBox’s single vault token-holding mechanism is a game-changer. It utilizes a principal location for held assets, eliminating an unnecessary multitude of transactions, which lowers the overall gas processing fees for internal token transfers. The combination of a new venue for yield generation and gas optimization is a feature that Liquid Staking Liquidity Providers will greatly benefit and reducing significantly the capital inefficiency of liquid staking liquidity pools by accessing an additional sustainable stream of lending rewards coming from Aave.