eUSD LP

eUSD LP lets you mint eUSD straight into a liquidity pool. You deposit SPY or USDG. The protocol mints eUSD against it and pairs the two in that asset's eUSD pool on Fables. Your deposit is collateral and liquidity at the same time, so it earns on about twice its size while you keep your full SPY exposure.

Open it at own.money/mint/lp.

In one example

You deposit $10,000 of SPY. The app mints about 10,000 eUSD and places both in the SPY/eUSD pool, for $20,000 of liquidity. Your debt is the 10,000 eUSD, so your collateral ratio is 200%.

• You still own $10,000 of SPY, the same as before you deposited.
• You earn the pool's rewards on $20,000, so about 2x the pool APR on your own money.
• You pay the stability fee on the 10,000 eUSD you minted.
• With a ±10% range, the position is liquidated only if SPY falls about 41%.

Why it beats the alternatives

Take $10,000 of SPY and a pool that pays 20% a year on its liquidity. The rate is only an example, and the app shows each pool's live APR.

The borrowing row assumes a USDG borrow rate of about 5%, typical on Robinhood Chain lending markets. That rate moves with demand. The eUSD LP cost is the 8% fee less up to 5% back, which Own pays through bribes that boost the pool's FABLES emissions (see Fees).

Your capital works twice

On a lending market, your SPY sits in the market as idle collateral. You only earn on what you borrow and put to work elsewhere. With eUSD LP, the SPY you deposit is itself half of the liquidity, and the eUSD minted against it is the other half. Nothing sits idle.

You keep your SPY

To LP SPY yourself, you need about as much USDG as SPY, so you sell half your SPY or bring new cash. eUSD LP supplies the other half as newly minted eUSD, so you keep 100% of your SPY.

Low cost

• Fixed fee. The fee is 8% a year while staked and 6% unstaked. It does not change with demand, because no lender has to be paid.
• Up to 5% back. Most of the staked fee comes back as FABLES emissions, for about 3% net, below a typical USDG borrow rate of around 5%.
• On the eUSD side only. The fee is charged on the eUSD you minted. That eUSD stays in your own position, earning alongside your SPY.

A wide safety margin

Only the SPY half of the position moves with the market, because the eUSD half is valued at $1. At the app's 200% ratio with a ±10% range, SPY has to fall about 41% before the position can be liquidated. For comparison, a 50% LTV loan on a market that liquidates at 77% LTV is liquidated after a 35% fall.

How it works

1. Deposit. You pick SPY or USDG and an amount. A position needs at least 100 eUSD of debt.

2. Pick a range. You can choose:

   • a preset around the pool price (SPY ±5%, ±10% or ±25%; USDG ±0.1%, ±0.5% or ±1%);
   • Full range;
   • Custom, a minimum and maximum price that includes the current price.

3. Pick a mode.

   • Staked (8% fee) earns FABLES emissions. Swap fees go to Fables voters.
   • Unstaked (6% fee) keeps the pool's swap fees.

   You can switch modes at any time.

4. Mint. The manager mints the eUSD the range needs and adds both tokens to the pool. A new position also needs the pool price within 3% of the oracle price for SPY, and within 1% for USDG. This stops a moved pool from setting your entry price.

Each wallet has one position per pool, held in its own vault. Adding again tops up the same range.

The APRs in the app are already shown on your collateral: the pool APR × ratio ÷ (ratio − 1). At 200% this is 2x the pool APR. The Manage tab shows how much SPY and eUSD the position holds now, with their dollar values.

Two pools

On eUSD/USDG, both tokens trade close to $1, so the position only moves if one of them leaves its peg.

Managing the position

Fees

The fee accrues on the eUSD you minted and is added to the debt. There is no mint fee. The rebate is paid through Own's bribes on the eUSD pools, which draw FABLES emissions to them. It is part of the staked pool APR, not a separate payment. See Fees & rebates.

Risks

• Liquidation. The position is valued at the oracle price, with eUSD at $1. Below a 120% ratio, anyone can liquidate part or all of the debt and take that share of the position plus a 5% bonus. If SPY falls through your range, the eUSD side is swapped into SPY, so a narrow range is liquidated sooner. The app shows the liquidation price before you add.
• Impermanent loss, on twice the size. Like any concentrated liquidity position, it sells SPY as the price rises and buys it as the price falls. Because the position is about 2x your deposit, these moves are about 2x too.
• Out of range. Outside your range, the position earns nothing. You can close and reopen a new range.
• Redemptions (SPY pool). Holders can redeem eUSD against a SPY position when it holds at least 75% SPY by value at the pool price. The redeemer gets SPY at the oracle price less 0.5%, and that 0.5% stays in your position. Your debt falls by the same amount of eUSD. Redemption is off for the USDG pool.
• Variable rewards. FABLES APRs move with the FABLES price, the votes each pool gets, and how much liquidity shares the emissions.
• Contracts. Both the liquidity manager and Fables are smart contracts. See Security & audits.

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