Why this app was chosen?
Everyone loves to provide liquidity. It is the best way to earn money in decentralized finance, but liquidity is often produced in pairs. Impermanent Loss is the loss of assets in DeFi as prices change over time. It sucks.
This is why lending liquidity provision is uniquely apt to attract attention because of this. However it is not always profitable, although it is very safe.
The most fun way I have found to earn interest, and likely the most risky is providing liquidity to Options Trading Exchanges. The reason this is risky is because if all the options traders get it right, all your money is gone. But that is very unlikely.
That is how I found Avantis.
If you lock your USDC in this pool you can ensure some triple digit interest for a finite period of time. I have used the 14 day lock and your assets are released back to the base rate of interest after that period.
These rates of interest are highest when the option traders are the most wrong and they are the lowest when the option traders are the most right. Of course, this assumes activity is present.
Avantis is located on Base Layer 2 and offers Option Trading for both Ethereum & Bitcoin.
