Volatility Farming

Volatility Farming (VF) is a core yield-generation mechanism within the Peapods protocol, designed to monetize volatility. It enables liquidity providers (LPs) to earn yield from real economic activity, rather than relying on token emissions or inflationary incentives.

The protocol captures arbitrage flows, trading activity, and pTKN interactions to provide sustainable returns for LPs.

By embedding fee mechanics directly into the Pod lifecycle (e.g., wrapping, unwrapping, trading), Peapods ensures that every interaction with the Pod, routes value back to LPs. This creates an organic, non-inflationary incentive loop where Pod activity directly powers LP yield.

Volatility Farming transforms liquidity provision into a strategy that benefits from price volatility, rewarding participants for enabling deep, arbitrageable markets.