🧑🚀Orbital - Yield Optimizer
More Yield for LPs
Last updated
More Yield for LPs
Last updated
Orbital creates a circular causality of growth through your reinvestments by our auto-compounding mechanism. It takes advantage of reinvestment opportunities to earn higher yields. It redeposits liquidity tokens back into the LP, increasing the user’s share of the pool, which in turn increases trading fees earned.
Trading fees generated by LPs are shared equally among all participants in the pool. The more LP tokens a user holds, the larger their share of the fees.
In short, Orbital optimizes the yield generation process by pooling all deposited assets and investing in the respective LP together. This leads to higher fees earned by participants in the LP as compared to individual staking.
Interest-bearing assets can enhance the APY of the vault through flywheel compounding returns.
This benefits several parties:
Users are more likely to deposit in Orbital’s vault due to the attractive APY offered by interest-bearing assets
Parallax can accumulate more TVL
Partnering protocols are motivated to incentivize the vaults to drive more liquidity to their LP
In this way, the flywheel effect of compounding returns can help fuel a positive feedback loop where everyone involved benefits.
In a later stage of development, we will incorporate a “boost” function that enables partnering protocols to incentivize pools even more with their rewards, thereby increasing APY. This function can be likened to how the CVX bribe market operates.
Projects may partner with Parallax to receive marketing support or to hold initial bootstrapping events that require deeper LP liquidity. In return, Parallax will reward protocols with additional incentives in token emission.
With Orbital, users can rest assured that their investments are working hard for them, generating higher yields and maximizing their returns.
