Allbridge Yield: Auto-Compounding Rewards for Liquidity Providers
Allbridge Core pools are a great way to earn interest on stablecoin balances without dealing with exotic assets or the risks of impermanent loss. Once deposited, your funds remain in the same asset and begin earning rewards from bridging activity.
However, there are two practical drawbacks. First, rewards don’t automatically compound. To grow your earnings, you need to manually claim them and redeposit, which means signing multiple transactions and paying network fees that can eat into your profits.
Second, deposits in Allbridge Core are not fully liquid. Even though your pool position may appear as a token in your wallet on EVM networks, it cannot be transferred to another address like standard LP tokens. This limitation comes from how rewards are distributed in the Core contracts — the depositor must remain the same.
What Is Allbridge Yield?
Allbridge Yield is a new service designed to remove the friction of managing rewards in Allbridge Core. Instead of each user having to claim and reinvest rewards manually, Allbridge Yield does the work on your behalf.
When you deposit through Allbridge Yield, the contract becomes the depositor to the Core pool and issues you LP tokens in return. These tokens are standard, liquid assets that can be held, transferred, or traded just like other tokens in your wallet. The key difference is that rewards no longer sit idle or appear as a separate balance. Instead, they are automatically reinvested and reflected in your LP token balance, which grows over time without any action from you.
How It Works
Depositing into Allbridge Yield is simple. When you add funds, you receive LP tokens in return — one token for each unit of stablecoin deposited. These tokens represent your share of the pool and grow in value as rewards accumulate.
For example, if you deposit 1,000 USDT, you’ll initially receive 1,000 Yield LP tokens. As the pool earns fees from bridging activity, your token balance updates automatically. If your share of the rewards is 10 USDT, your wallet will now show 1,010 LP tokens, without you needing to claim or redeposit anything.
Because rewards are continuously added back into the pool, you also benefit from compounding. Over time, this ensures you capture the full growth of your position without extra effort or extra transaction costs.
Why It Matters
Allbridge Yield makes liquidity provision smoother and more rewarding. By automating the compounding process, it removes the hassle of managing claims and redeposits. At the same time, LP tokens are fully transferable, giving you the flexibility to move or trade your position just like any other token.
There are no added fees or withdrawal restrictions — it’s the same Allbridge Core pools you already know, but with smarter mechanics. For liquidity providers, this means your stablecoins work harder for you, delivering consistent growth with less effort.
Getting Started
Allbridge Yield is already live as a pilot on the Celo blockchain. You can try it today by visiting core.allbridge.io/yield. The service works seamlessly with your existing wallet — just deposit stablecoins, receive LP tokens, and let the rewards compound automatically.
Support for more blockchains is on the way, so soon you’ll be able to use Allbridge Yield across the wider Allbridge Core ecosystem. Whether you’re an existing liquidity provider or new to Allbridge, it’s the easiest way to put your stablecoins to work.
