Lps
🧠 Strategies for Liquidity Providers (LPs)
Liquidity Providers on Scall.io can earn a base yield of 20% APR by locking assets at a specific strike price — but advanced LPs can amplify returns or manage risk through additional strategies. Here are two example strategies tailored for a BTC/USDC market where the current price is $80,000.
🧮 Strategy 1: Yield Farming with a Hedged Short
Goal: Create a delta-neutral position that earns a high, stable yield.
How it works:
Deposit 1 BTC into a Call liquidity pool at the nearest strike price (e.g., $81,000) on Scall.io.
Simultaneously open a short position for 1 BTC on a centralized or decentralized perpetual futures exchange.
Result:
You earn ~20% APR on Scall.io from the trader-paid rent.
You also earn ~15% APR from the funding rate of the short position (since long traders pay funding to shorts in most bullish markets).
The position is delta-neutral (price-stable), meaning you hold 1 BTC and are short 1 BTC.
🧠 When BTC hits $81,000, your liquidity may be exercised. In that case, close the short position to settle and realize your total yield.
Estimated Total Yield: ~35% APR
Benefits:
Stable and predictable returns
Protected against BTC price volatility
Earns from two yield sources
Risks:
Funding rates can fluctuate
Must actively monitor to close short if price reaches the strike
🔁 Strategy 2: Stay Exposed to Bitcoin with Rent Yield
Goal: Maintain Bitcoin exposure, earn passive income on both BTC and USDC, and avoid unnecessary slippage.
How it works:
Deposit 1 BTC into a Call liquidity pool at the nearest strike price (e.g., $81,000) on Scall.io.
Simultaneously, keep $81,000 USDC outside of Scall.io in a yield-bearing protocol like AAVE, earning approximately 5% APR.
This way, you earn:
20% APR on your BTC via Scall.io rent fees paid by traders.
5% APR on your stablecoins through external lending platforms.
When the strike price is reached:
Your BTC may be exercised and swapped for $81,000 USDC.
Instead of manually re-buying BTC (which can cause slippage, fees, and spread losses), you purchase a short-term Call option — either on Scall.io or another options platform — with the same strike of $81,000.
🔁 This lets you retain exposure to BTC without converting your stablecoins manually each time the price moves.
📈 Example Outcome:
BTC hits $81,000 → your 1 BTC LP position may be exercised → your LP position is now 81,000 USDC.
At the same time, you use your previously reserved USDC to secure a new BTC position via a Call option.
If BTC continues rising, you’re still fully exposed to the upside — just like at the beginning with 80 000 USDC (on Scall.io now) and 1 BTC in your wallet.
Meanwhile, you earned passive APR on both assets throughout the process.
✅ Benefits
Double yield: 20% on your LP position + ~5% on remaining liquidity out of scall.io
Preserve long exposure to Bitcoin
Avoid slippage and spread by not swapping back and forth manually
Fully on-chain compatible and DeFi-native
⚠️ Risks
The cost of buying short-term options may vary based on market conditions
This strategy is ideal for long-term Bitcoin believers who want to maximize yield while maintaining upside exposure, and prefer a low-touch, capital-efficient approach.
🧠 Summary Table
Hedged Short + LP
Delta-neutral
Scall Rent + Futures Funding
Medium
Requires active monitoring, closes at strike
Exposed LP with Re-entry
Long BTC biased
Scall.io Rent
Low
Best for passive bullish investors
These strategies demonstrate how Scall.io can be used not just to provide liquidity, but to optimize capital efficiency and layer yields in sophisticated ways.
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