Providing Liquidity on Base

Providing Liquidity for Synthetix V3 on Base

There are two ways to provide liquidity and earn rewards on Synthetix V3 deployed on Base:

1. Manually through the Synthetix V3 LP app

2. (Recommended) Using the Toros automated V3 LP Vault

Method 1: Providing Liquidity Directly in the V3 LP App

1. Bridge or obtain USDC on Base

2. Go to the Synthetix V3 LP app

3. Connect your wallet, switch network to Base, then click 'Create Account'

4. Click "Deposit" on the USDC tab within the Spartan Council Pool

5. Deposit your USDC collateral

6. You're now an LP and eligible for perps trading fees + USDC/SNX LP incentives

Method 2: Using the Toros/dHEDGE Automated Vault

Toros/dHEDGE has created an automated vault that provides liquidity, compounds rewards, and allows users to utilize the underlying token in DeFi for the Synthetix USDC pool on the Andromeda deployment while still earning rewards.

How to Use

1. Visit https://toros.finance/synthetix-usdc-andromeda-yield

2. Deposit USDC to utilize the auto-liquidity feature

Benefits

• Automated staking and compounding of USDC incentives (SNX rewards are not compounded)

• Receive sUSDCy token, which can be used in DeFi for:

  • Providing liquidity (LPing)

  • Lending

  • Other DeFi applications

Note

• USDC incentives will be automatically compounded

• SNX rewards will not be compounded and can be claimed upon withdrawing from Toros/dHEDGE.

Key Points to Understand (Applicable to Both Methods):

• Collateral determines your share of fees and incentives (different from V2's debt-based distribution)

• 24-hour lock applies to withdrawals for USDC, fees, new deposits, and other activities reset the timer

• LPs can only supply USDC to earn fees and incentives (no sUSD minting capability)

• Wrapped tokens may appear in your wallet or on Etherscan.

• Fee split: 40% to LPs, 40% to SNX buyback and burn, 20% to integrators.

• Reference other blog posts for incentive program details and timelines.

Risks of LPing:

⚠️ Skew or poor market performance can increase debt

• In the first few weeks after launch, debt levels may fluctuate based on trader performance and market conditions.

• As Open Interest caps are increased, arbitrageurs are expected to balance any skew in the perps markets, neutralizing its impact on debt.

⚠️ Smart contract vulnerabilities

⚠️ Collateral depeg (USDC)

As always, do your own research and only deposit what you can afford to lose. Understanding the risks is crucial before participating as a liquidity provider.