What is AquaFi?
Aqua Finance (AquaFi) allows liquidity providers to earn up to 100% additional yield on their liquidity.
How does it work?
AquaFi (in short) captures fees generated from staked liquidity and pays an additional premium upon unstaking. This additional premium and the returned liquidity fees will be paid in Aqua tokens.
The steps below show what this looks like from a users perspective:
User stakes their decentralised exchange (DEX) liquidity tokens into AquaFi
User allows some time to pass, during this time, the staked liquidity tokens are earning fees on their associated DEX
User decides to unstake their initial liquidity from AquaFi at which point the initial liquidity tokens will be returned to the user, all fees generated will be returned to the user in Aqua tokens along with an additional premium which can be up to 100%