2026-01-07 15:23:27

The biggest nemesis of DeFi LP mining is impermanent loss. Once asset prices fluctuate more than 2x, the loss rate can skyrocket to 5.7%, and fee income can be eaten up in minutes. But choosing the right trading pairs can completely solve this problem.

The USD1 LP strategy of ListaDAO is a prime example. They mainly promote highly correlated trading pairs like USD1/BNB and USD1/slisBNB (correlation over 95%), and the benefits are obvious — when BNB price doubles, the impermanent loss for USD1/BNB LP is only 0.5%-1%, much better than cross-asset pairs like USD1/BTC (5.7%). In more extreme cases, if the price surges 5x, the loss for USD1/slisBNB remains stable within 2%, while cross-asset pairs can reach 25% or more.

This approach was validated during the 13.5% market crash in October 2025 — ListaDAO’s core LP pools had an impermanent loss rate of only 0.8%, fully covered by fees. That’s why they can consistently offer annualized returns of 20%-30%.

Besides selecting the right trading pairs, dynamically adjusting leverage is also crucial. When the market is stable, leverage can be increased to amplify returns; after volatility spikes, immediately reduce leverage. This way, you can enjoy gains without getting trapped. That’s the real strategy of experienced miners.

USD10,03%

BNB0,86%

BTC0,28%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
6
Repost
Share

Comment

0/400

RektRecorder

· 17h ago

Highly correlated trading pairs are indeed a trick, but a 20%-30% annualized return is way too outrageous.

View OriginalReply0

TokenomicsTinfoilHat

· 01-08 22:33

Highly correlated trading pairs are indeed a clever move. I've been hit by Uniswap losses too many times before. Now I finally found a way out. I need to try the USD1/slisBNB combination.

View OriginalReply0

LiquidationSurvivor

· 01-07 15:52

Oh no, I've already used this high-correlation trading pair trick, it's really stable. USB1/BNB is really fierce, controlling losses tightly during volatility. Dynamic leverage adjustment sounds simple, but in practice it still depends on luck. 20%-30% annualized? No hype, this number needs verification. Impermanent loss is truly a nightmare for LPs; choosing the right pool can be lifesaving. A correlation of 95%—that threshold is cleverly set. I've seen losses of 25% before, that feeling... I don't want to experience it again. USD1's gameplay is quite interesting, need to pay attention. Wait, can this leverage adjustment really avoid pitfalls? I feel like the risk is still there. High-correlation pairs are the right way; I almost got liquidated with BTC pairs before. That October crash with a 0.8% loss rate? Sounds a bit exaggerated.

View OriginalReply0

LiquidatedTwice

· 01-07 15:49

I agree with this logic for highly correlated trading pairs, but the 20-30% annualized figure... I just feel something's off.

View OriginalReply0

NftRegretMachine

· 01-07 15:47

Impermanent loss is indeed a trap, but choosing the right pair can really save your life. An annualized return of 20%-30% sounds great, but I'm just worried it might be another superficially attractive thing.

View OriginalReply0

SoliditySurvivor

· 01-07 15:25

Highly correlated trading pairs are indeed a good idea, but I still have some reservations about the 20%-30% annualized return.

View OriginalReply0