Gyroscope AVAXUSDC ECLP Hits 97% APY Outpacing DeFi Liquidity Pools

Gyroscope’s AVAX/USDC Dynamic E-CLP has demonstrated exceptional performance on the Avalanche blockchain, achieving a Swap Fee / TVL annualized percentage yield (APY) of 97% according to the latest data. This figure significantly surpasses other similar liquidity pools on the network [1]. The performance highlights the growing appeal of Gyroscope’s Dynamic E-CLP model, which has been optimized to balance risk and return in a competitive DeFi environment.

Among the compared strategies, the Gyro Dynamic E-CLP (30bp fee) stood out with its 97% APY, far outpacing alternatives like LFJ (20bp): 23%, LFJ (7.5bp): 62%, and Pharaoh (7bp): 59%. The superior performance is attributed to a broader liquidity distribution range, which helps mitigate Impermanent Loss (IL) risk while still capturing a high yield [1].

The launch of the Dynamic E-CLP on Avalanche at the end of July included liquidity incentives for the AVAX/USDC and GYD trading pairs, marking a strategic expansion for Gyroscope [1]. The early results affirm the potential of this model in attracting liquidity providers who seek higher returns without exposing themselves to excessive risk.

The data underscores a broader trend in DeFi, where dynamic liquidity strategies are gaining traction as users seek more efficient capital utilization. By offering a wider range of liquidity distribution, the Dynamic E-CLP provides a more robust and adaptive solution compared to traditional concentrated liquidity pools.

Source:

[1] Gyroscope Dynamic Liquidity Pool Goes Live on Avalanche, Excels in Subsequent Performance, AVAX/USDC Pool Tops APY

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