Swaap Labs has launched a DeFi product protocol called Swaap Earn “from high fees”.

Defy market maker Swap Finance has launched a new service called SwapEarn, which allows users to get extra yield on already yielding assets.

The protocol maximizes returns for investors through a market-making product, which spreads investors' assets across multiple pre-defined protocols.

Productivity

Market facilitation DeFi users provide decentralized exchange liquidity, allowing other crypto buyers to easily find sellers and vice versa. A product that makes a market can come from two sources: transaction/exchange fees or internal token rewards.

According to a press release shared with CryptoPotato, Swap Liquidity providers will get “superior yield” by putting their assets into single asset pools. Assets are distributed dynamically across multiple protocols to search for the best yield at any given time.

The model offers investors active, but less reliable, returns. Over time, Swaap's decentralization will add new allocation rules and mechanisms to ensure the highest yield possible.

“The beauty of Swap Earn is its simplicity and efficiency,” said David Bubba of Swap Labs. “By marrying our modern marketing strategies with tangible product development, we're setting a new standard for liquidity in the DeFi space.”

Continued development of swaps

The first vaults on Swaap Earn were developed in partnership with Lido and Awe. With Aave's offering, Lido is the world's largest DeFi protocol offering investors liquid stake assets like Staked Ether (stETH), and Ave is a loan protocol with $11.8 billion under management.

According to Swap, revised fee structures among popular AMMs have made it difficult to achieve sustainable production in DeFi.

“Despite progress in strategy and risk mitigation, issues such as poor strategy design and risk of loss persist,” the team wrote. “Swap Earn was created to address these challenges while increasing revenue for LPs.”

A year ago, Swap Labs closed a seed funding round led by Signature Ventures with CoinShares CSO Meltem Demirors. Swaap v2 launched in July 2023, bringing advanced autopilot marketing strategies to all users for the first time.