Impermanent Loss Protection

Impermanent Loss Protection (ILP) has been completely deprecated on THORChain. However, MayaChain continues to offer ILP at a rate of 1% per day.

ILP on MayaChain:

• ILP coverage begins on the 50th day after entering the pool.

• If ASSET outperforms CACAO, full ILP coverage is achieved after 150 days (50 days from the initial deposit plus 100 days in the pool).

• If CACAO outperforms ASSET, full ILP coverage is achieved after 450 days (50 days from the initial deposit plus 400 days in the pool).

For example, if you deposit $1,000 worth of ASSET and CACAO into the pool, you will be able to withdraw at least $1,000 worth of ASSET and CACAO after 150 days, regardless of the pool's performance or the price action of the assets (assuming ASSET outperforms CACAO).

For more details on ILP on MayaChain, check out this resource: Impermanent Loss Protection (ILP) on MayaChain

Liquidity Pooling Strategies

Explore these common LP strategies to optimize your approach:

• Basic LP Scenarios: Learn about fundamental liquidity provider strategies in the Thorchain University Discord.

Custody During Liquidity Providing

Yes, the assets are transferred to THORChain’s/Mayachain's address/vaults on-chain but only your address (private key) can redeem the asset back. All code is open-sourced, and is audited multiple times. You can either audit the code yourself, or trust the community who have pored over the code; to make sure the above points are correct.