How to earn yield as a liquidity provider on Tigris

Tigris allows for the creation of native stablecoins that are pegged to a currency and backed by a basket of same-type assets. These stablecoins are redeemable 1:1 for any asset in its respective StableVault, which ensures a stable peg. The StableVault allows for many tokens of the same kind to be used to trade on Tigris without splitting up liquidity into multiple individual pools. Currently the only Tigris token available is tigUSD backed by DAI on Polygon and USDT on Arbitrum but at any moment new ones such as tigETH (to allow traders to open trades with ETH) can be created.

Opening a trade on Tigris will automatically deposit the margin into the StableVault and closing a trade will withdraw from the StableVault if the trader chooses to not receive the payout in tigUSD. Negative PNL and liquidations remain inside the vault while positive PNL is taken out of the vault.

To incentivize staking and to offer deeper liquidity to traders, tigUSD can be locked to earn yield from receiving a share of the trading fees. Locking instead of simple staking is used in order to prevent liquidity flight during periods of high volatility or during a particularly good winning streak for traders. tigUSD can be locked for a period ranging from 7 to 365 days.

In order to reward liquidity providers that choose to lock for a longer period of time the staker will receive shares based on the length of the lock.
For example:

• if you lock your tigUSD for 14 days, you will receive your staked tigUSD amount multiplied by 14/365 shares.
• On the other hand, if you lock your tigUSD for 365 days, you will receive your staked tigUSD amount multiplied by 365/365 shares.

To create a new lock go to the Vault page and swap your stable for tigUSD (there is no fee for swapping).
Scroll down to the staking interface. Here you can see the current average APR calculated as the average earnings made from the average lock in the last 7 days.

Click on “Create your first lock” and input how many tigUSD you want to stake and how long you want your lock to be.

Each lock is minted as an NFT that can be sent to another wallet or exchanged. This is a very unique feature that enables stakers to sell their locks (and the future rewards associated to the lock) on the secondary market, effectively creating a bond market for tigUSD locks.

You can see your locks by clicking on “My Locks”. Through the modal, you can claim rewards, lengthen your lock, and stake more tigUSD. You can also create as many locks as you want.

As staked liquidity grows so does the max Open Interest available to traders on the platform. This creates a flywheel effect where more liquidity brings in more traders that generate more fees to the protocol and the stakers.

Links:

Website: https://tigris.trade
Twitter: https://twitter.com/TigrisTrades
Discord: https://discord.gg/tigris
Docs: https://docs.tigris.trade/tigris/quick-links