Custom Strategy

The custom strategy is your personal creation, mixing and matching the three major components of Liquity into your own defi solution. You can utilize all, one or any combination of the trove/vault, stability and staking pools.

Compounding Debt

• Take a loan to mint new USDL based on changes to collateralization ratio caused by PLS price changes or deposits to the vault

• Route minted USDL to stake in the Stability Pool to earn liquidation rewards and LOAN tokens

• Swap minted USDL to PLS and deposit to vault to raise collateralization ratio

• Swap minted USDL to LOAN and stake in the Staking Pool to earn lending and redemption fees.

Compounding Stability Pool

• Claim liquidation rewards and deposit into vault to raise collateralization ratio

• Claim liquidation rewards, swap to USDL and stake back in the Stability Pool

• Claim LOAN token rewards and stake in the Staking Pool to earn fees

• Claim liquidation rewards and LOAN to wallet

Compounding Staking Pool

• Claim lending fees in USDL and stake in Stability Pool

• Claim lending fees in USDL, swap to PLS and deposit into vault to raise collateralization ratio

• Claim redemption fees in PLS and deposit into vault to raise collateralization ratio

• Claim both fees to wallet