Part 5/10:
Liquidity Pool Participation:
Providing liquidity in the USDC pools on Base or Leoex offers substantial APRs, notably 272%+ on Surge USDC pools and up to 2,000% on Leo USDC pools.
These pools utilize concentrated liquidity, allowing LPs to target specific price ranges, optimizing income from trading fees and yield.
The Reflexive "Rubber Band" Effect
A core insight shared by the community is Surge’s reflexivity: when its price dips below $1, demand intensifies, pushing the price back up. The more it falls, the higher the effective yield becomes, incentivizing buying below the peg. Conversely, when the price recovers, the collateralization backed by LEO ensures that Surge remains safe and overcollateralized, reinforcing stability and confidence in the asset.