# Sushiswap - Single-Sided Liquidity

## Overview&#x20;

The Sushishwap - Single-Sided Liquidity Proving strategy involves using a single asset, in this case, USDC, and using a variety of protocols to provide liquidity on a Sushiswap's decentralized Liquidity pool to earn yield. There are several steps:&#x20;

1. USDC is provided as collateral on Aave and borrows out a corresponding asset like wrapped Ethereum (WETH)
2. Then the USDC and the borrowed WETH are deposited within a predefined range on Sushiswap to provide liquidity.&#x20;
3. Due to the risks of impermanent loss based on the inherent price movement of WETH, bots automatically readjust positions over time (or exit altogether in times of high market volatility) to minimize losses. &#x20;
4. At the end of the period, the position is closed out on Sushiswap and then on Aave.&#x20;
5. We also sell our reward SUSHI tokens for USDC.
6. This process is called an iteration strategy. And at the end of each, we are left with USDC and ready for another iteration. This repeats over time to earn cumulative rewards.&#x20;

## Summary&#x20;

* **Network**: Ethereum, Polygon
* **Protocol(s)**: Sushiswap, Aave
* **Strategy Type**: Liquidity Providing

## Resources&#x20;

* [Sushiswap USDC-WETH Pool](https://app.sushi.com/analytics/pools/0x397ff1542f962076d0bfe58ea045ffa2d347aca0?chainId=1)


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