Liquidity - SPA

Overview

Pike integrates advanced liquidity functionality powered by Tapio - an asset protocol that creates Self-Pegging Assets (SPAs) - stable assets powered by robust AMMs. This enables users to provide liquidity to correlated asset pools and receive wSPA (wrapped Self-Pegging Asset) tokens. These wSPA tokens can then be used as collateral in Pike’s lending markets, creating unique opportunities for capital efficiency and dual yield generation.

This integration represents a significant advancement in DeFi capital efficiency, allowing users to earn both liquidity provider fees and lending interest simultaneously from the same underlying assets.

What are wSPA Tokens?

wSPA (wrapped Self-Pegging Asset) tokens are a wrapped version of the SPA token issued when you provide liquidity to Tapio pools. These tokens have several unique characteristics:

Core Properties:

• LP Representation: Each wSPA token represents your proportional share of a specific liquidity pool

• Fee Accumulation: Automatically earn trading fees from swap activity within the pool

• Collateral Capability: Can be used as collateral in Pike’s lending markets to earn additional interest

• Wrapped Format: ERC-4626 compliant for seamless integration across DeFi protocols Key Advantage: Unlike traditional LP tokens that sit idle after provision, wSPA tokens can be actively deposited to Pike’s lending markets to generate additional yields while maintaining your liquidity provision.

Supported Networks

Pike’s liquidity functionality is currently available on:

• Base Mainnet

• Sonic Mainnet

The Dual Yield Opportunity

Pike’s integration with Tapio creates a unique “dual yield” mechanism that maximizes capital efficiency:

Primary Yield: Liquidity Provider Fees

• Trading Fees: Earn fees from users activities on pools

• Automatic Accumulation: Fees compound automatically within your wSPA token value

• Volume-Based: Higher trading volume leads to increased fee generation Secondary Yield: Lending Interest

• Collateral Usage: Supply wSPA tokens as collateral in Pike’s lending markets

• Interest Earnings: Earn additional APY on your wSPA token value

• Compounding Effect: Both yields compound together for enhanced returns Your wSPA tokens generate returns from pool fees while simultaneously serving as collateral for loans on Pike. This allows you to maintain your liquidity position and access additional capital without selling your tokens.

Using wSPA Tokens in Pike’s Lending Markets

Once you receive wSPA tokens from liquidity provision, you can maximize their utility within Pike:

Supply as Collateral

To supply your wSPA tokens as collateral on Pike, start by navigating to Pike’s lending interface. Once there, supply your wSPA tokens with the collateral option enabled.

Borrowing Against wSPA

After supplying wSPA as collateral, you can start borrowing assets that are supported in the market.

For more details, please visit the User Guide section.

E-Mode Integration

wSPA tokens benefit from E-Mode features:

• Enhanced LTV: Higher borrowing capacity for correlated strategies

• Optimized Parameters: Risk settings tailored for correlated assets

• Capital Efficiency: Maximum utility while maintaining safety Pike’s liquidity integration represents a significant innovation in DeFi capital efficiency. By understanding how to effectively combine liquidity provision with lending strategies using wSPA tokens, users can maximize their returns while managing risk appropriately.