ZAP
Zap is a DeFi liquidity provision mechanism that allows liquidity providers (LPs) to supply two-sided liquidity to a pool using only a single token, rather than needing to provide an exact pair of tokens. The protocol automatically handles the conversion of the single token into the appropriate token ratio required by the liquidity pool.
This process simplifies adding liquidity by removing the need for the user to manually swap or balance token pairs before contributing. Zap automates the token swaps and splits behind the scenes, efficiently creating the balanced liquidity position in one seamless transaction.
Benefits of using Zap
- Eliminating manual management of token ratios
- Reducing transaction steps
- Improving user experience, especially for beginners
- Allowing faster and more flexible liquidity provision