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Liquidity Providing
Liquidity providing plays a very important role in the Lexer ecosystem since it decides the cap of the total open interest for the protocol and takes the risk against traders. Liquidity providers are rewarded with 70% of the trading fee and traders PnL.
As Lexer has our unique hybrid liquidity engine, LPs could choose which engine to provide the liquidity to through our smart router. By the design of the Multi-assets LP engine, providing liquidity for this pool act as holding a bundle of a blue-chip crypto index, and partake in sharing protocol revenue at the same time, while providing liquidity for the Synthetic LP engine doesn't have the risk of carrying any crypto because it uses USD collateral by design. The counter trader risk and the fee-sharing are engine dependent, so providing for one engine will only share the trading fee and traders PnL generated from that engine, it gives LPs more choices on the risks they want to bare.
Last modified 3mo ago