# Amplified Volatility Choosing the correct pairing asset for a Pod can amplify the potential voaltility, and thus performance of a Pod. The more volatile the pTKN/Paired Asset pair, the greater the likelihood of:\ Price divergence from fair value (based on external market benchmarks)\ Arbitrage-driven interactions\ Fee generation from correcting these imbalances Protocols can optimize this effect by selecting counter-correlated or uncorrelated assets as pairings. For example, pairing a high-volatility DeFi token with ETH or a stablecoin amplifies price dislocations and creates recurring arbitrage windows. This impact can then be further amplified by pairing with an asset that is counter-correlated or negatively correlated with the core LP position of TKN, resulting in arbitrage not just between pTKN/TKN but also in divergences between the prices of the two paired assets. Yield is therefore a direct function of volatility, volume, and fee structure. LP returns increase linearly with system usage but can scale disproportionately during high-volatility environments. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.peapods.finance/volatility-farming/amplified-volatility.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.