Swaap and PWN are teaming up to make your assets not just digital, but dynamic. Today, we're proud to announce the integration of Swaap v2. All Swaap liquidity providers can now use LP tokens as collateral to borrow on PWN and enjoy safe, predictable leverage on their yield-bearing positions.

Meet Swaap

Swaap v2 is an innovative market-making protocol that specializes in blue-chip crypto assets. It offers liquidity providers with superior, effortless market-making strategies.

The protocol uses mathematically optimized strategies that intelligently adjust fees and asset holdings to maximize returns while minimizing impermanent loss risks—all on autopilot. It's like having an expert trader working for you around the clock.

Swaap's models are built in collaboration with leading institutions, bringing the best of traditional financial market-making models to DeFi. It allows liquidity providers to engage with a wide array of assets across the Polygon, Arbitrum, Ethereum ecosystems.

Why use Swaap LP tokens as collateral on PWN?

PWN lets you use your Swaap LP tokens as collateral to borrow the asset of your choice, so you can seize more DeFi opportunities or unlock looping strategies by redepositing in the pool of your choice. And there’s more:

• No impermanent loss risk: You can leverage your LP without worrying about  additional risk of impermanent loss.

• Yield-bearing collateral: Your Swaap LP works for you while you use it as collateral (yes, that includes Swaap’s future token rewards).

• Flexibility meets predictability: Any Swaap LP can choose their loan terms (borrowed asset and amount, LTV, APR, duration). Once set, they remain immutable for the entire loan duration.

• No-price based liquidation: Don’t worry about price fluctuations. The only way to lose your collateral is to miss the loan repayment deadline.

• Bundled leverage: You can bundle multiple NFTs and ERC-20 assets to create a single collateral and unlock additional liquidity.

• Multichain: Swaap LP tokens can be used as collateral on PWN on Ethereum, Polygon, and Arbitrum.

HOW DOES PWN WORK?

ABOUT PWN

PWN is a peer-to-peer permissionless lending protocol. In the true spirit of DeFi composability, PWN users can borrow against—or lend using—any asset in their wallet (ERC-20, NFT, and even a bundle of both), while enjoying absolute flexibility on the loan terms (LTV, duration, APY, etc.). The oracle-less nature of the protocol protects all PWN loans from price-based liquidations. The only way to lose collateral is to default on a loan.

Operating on six EVM-compatible networks*, PWN opens up new liquidity avenues, composability options, and leverage opportunities, while giving its users both optimized capital efficiency and predictability on both sides of the loan. A win on all fronts.

*Ethereum, Optimism, Arbitrum, Base, Binance Smart Chain, Polygon, Cronos