What To Do With Your LOAN Token (3 Avenues)

What should I do with my LOAN tokens?

LOAN is a powerful token designed to have several key use cases, but it can be hard to know where to start.

Here are three things that you can do with your LOAN tokens right now. 

1. Stake It Til' You Make It

Holders of the LOAN can earn both $PLS and USDL in the LOAN Staking Pool.

The Staking Pool is a truly-decentralized way to earn yield. The Liquid Loans protocol has no admin keys, is completely trustless, and can be operated from the comfort and safety of your own self-custody wallet. 

Currently, the Staking Pool offers an estimated APR of 50%. This is paid out to stakers, with the revenue being sourced from both the redemption and borrowing fees of the protocol.

One of the best things about the LOAN Staking Pool is that the yield is not paid to you in LOAN tokens. This means that you don’t have to sell your LOAN to take profits from the yield. 

Additionally, when you stake your LOAN, you don’t lose any tokens over time.

You can access the LOAN Staking Pool here.

2. Provide Liquidity

Many users choose to provide liquidity for LOAN by supporting a variety of different trading pairs. This is a way to earn passive income while supporting the token itself.

The largest of these pairs is LOAN/WPLS on PulseX v2.

The daily average volume for this trading pair hovers around 50% of the total liquidity.

Liquidity Providers on this pair earn 0.22% of every trade, which is paid in both $PLS and LOAN.

This means that LPs can earn 0.11% yield on their principal per day.

However, liquidity providing can carry risk in the form of impermanent loss. For more information, check out our guide: Impermanent Loss Explained.

3. HODL What You’ve Got

Some users prefer to park their LOAN token in their wallet and do nothing.

This is a strategy that has paid off for other digital assets in the past.

In fact, the industry is rife with stories of early adopters getting rich by buying coins like BTC and leaving them untouched in their wallet for a long enough period of time.

At the same time, however, leaving your coins alone also means leaving yield earning opportunities on the table. Still, this might be a desirable option for anyone who wants to use their LOAN tokens with the least effort possible.

The Bottom Line

Liquid Loans is not going anywhere, and neither is LOAN.

Holders of LOAN currently have three distinct avenues for making the most out of their LOAN tokens. They can:

1. Stake
2. Provide liquidity
3. Hold onto the LOAN they already have

Staking LOAN means protecting your total holdings while earning yield in the form of $PLS and USDL.

Liquidity Providing means running a risk of impermanent loss, while being compensated in the form of the fees you earn for your service.

Holding your coins means playing the long game. Your tokens won’t go anywhere, and could appreciate in value, but you miss out on earning yield or fees.

The beauty of LOAN lies in the freedom it offers. You can use your tokens however you best see fit, allowing you to sculpt your own financial future.