Thanks to our partnership with the new-and-fashionable Velodrome exchange -- who by the way are enjoying a great surge in volume and TVL -- the DOLA-USDC pool now exceeds $1.8 million in TVL, paving the way for new lending markets and other initiatives on Optimism in the days to come.
For those not familiar with Optimism, it’s a new layer 2 “rollup” on Ethereum which offers high transaction throughput and low transaction fees. Since it’s a relatively new chain, generous rewards are sprinkled to active community members in order to encourage developers and others to join up.
VELO, the token native to the Velodrome, has enjoyed nice price movement recently, making the bridging DOLA to Optimism an appealing proposition. In sum: new chain, new DEX partner, and ... a cascade of new rewards.
Now ... enter yield aggregators like Tarot.to, who build a lending layer on top of liquidity pools to let users maximize their LP yields. Tarot offers users both one-sided lending for both tokens in a pool, or users can borrow tokens to leverage their LP position.
You may recognize Tarot if you have invested on the Fantom chain before. They recently ported their app to Optimism and today they currently offer a yield of between 55% and 142% for DOLA-WETH liquidity tokens on Velodrome.
Tarot recently launched a WETH-DOLA pair and there are multiple options for investors. The first is to build a WETH-DOLA LP position on Velodrome and deposit your Velodrome LP tokens into Tarot and enjoy the yield. Alternatively, there is an option for one-sided staking on Tarot – either DOLA or WETH – that offers a comparable return.
All of these options enable lending and borrowing where there previously was none, so if you already are providing liquidity on Velodrome, staking WETH-DOLA LP tokens on Tarot also allows you to borrow more DOLA and loop your WETH-DOLA staking position for even higher returns.
This is all live on Tarot today!