Our 80/20 mUSD/SUI LPs just outperformed all 50/50 LPs on Sui.
SUI dropped 17% since Sunday.
50/50 LPs took a beating.
80/20 LPs? They barely flinched and still earn 20% APR.
Weights Matter
1/ On Sunday, SUI hit ~$4.30
Now it’s ~$3.59 or a 17% drawdown in 3 days
If you were in a 50/50 pool, you had 50% exposure to that move.
In our 80/20 pool, only 20% of your capital was exposed.
Huge difference.
2/ Let’s compare:
50/50 Pool
- 50% of your LP got hit by a 17% drop
- That’s an 8.5% drawdown (before IL)
80/20 Pool
- 20% of your LP took the hit
- Only a 3.4% drawdown
✅ That’s 60% less downside
✅ And you’re still farming at 20% APR!!
3/ This is the core advantage of asymmetric LPing:
Less IL
Less volatility
Still earn yield
4/ If you’re still LPing 50/50, ask yourself:
Am I overexposed?
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