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 LUSD based on changes to collateralization ratio caused by ETH price changes or deposits to the trove

• Route minted LUSD to stake in the Stability Pool to earn liquidation rewards and LQTY tokens

• Swap minted LUSD to ETH and deposit to trove to raise collateralization ratio

• Swap minted LUSD to LQTY and stake in the Staking Pool to earn lending and redemption fees.

Compounding Stability Pool

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

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

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

• Claim liquidation rewards and LQTY to wallet

Compounding Staking Pool

• Claim lending fees in LUSD and stake in Stability Pool

• Claim lending fees in LUSD, swap to ETH and deposit into trove to raise collateralization ratio

• Claim redemption fees in ETH and deposit into trove to raise collateralization ratio

• Claim both fees to wallet