Concentrated Liquidity Positions
Hedge against impermanent loss on your concentrated liquidity positions
Last updated
Hedge against impermanent loss on your concentrated liquidity positions
Last updated
Step 1: The user creates a concentrated liquidity position in UniswapV3 for ETH-USDT within a selected price range to maximize capital efficiency, receiving an LP NFT to represent their position.
Step 2: The user deposits their concentrated LP NFT as collateral in Tren Finance to borrow XY while maintaining liquidity provision rewards.
Step 3: Maintain liquidity rewards while reducing impermanent loss exposure through hedging with the following benefits:
Reduced IL exposure while maintaining full LP rewards
Capital efficient liquidity provision in target range
Automated position management through hooks