LEXER Markets
  • LEXER
    • 📱 Launch App
    • 📈About LEXER Markets
    • 🔗Social Links
  • Roadmap and Development
    • 🗺️Roadmap
    • 🔐Security
    • 📔Contract Address
    • 📝Terms of Use
  • Trading
    • 👨‍🏫Getting started
    • 💵Asset Classes
    • 🗿Fee Structure
    • 🌊Liquidity Provision
  • Innovations and Mechanism
    • 📀Smart Router
    • 🐦Hybrid Liquidity Engine
    • 🔮Price Oracle
    • 🛑Risk Control
    • 👺Liquidation
    • ✨Guaranteed Execution
  • Token and Economics
    • 🪙Tokenomics
    • 💰Economic Flow
    • 🥩Staking
    • 🎁Referooor Program
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  1. Trading

Liquidity Provision

PreviousFee StructureNextSmart Router

Last updated 1 year ago

Liquidity provision plays a vital role in the Lexer ecosystem since it sets the cap of the total open interest and acts as the counterparty to traders. In return, these liquidity providers are rewarded with 70% of the trading fee in addition to any potential trader losses.

As Lexer has its unique , LPs can choose which engine to provide the liquidity to through the .

For the multi-asset LP engines (CoreCrypto & Arbi), liquidity provision is similar to a blue-chip crypto index with a share of the trading fees and exposure to trader PnL.

For the Synthetic LP engine, there is no volatile asset risk as it utilizes stables only, and it also receives a share of the trading fees and exposure to trader PnL.

Fee revenue and exposure to trader PnL are "engine dependent", so providing for one engine will isolate the risk and rewards to the trading from that particular engine.

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Hybrid Liquidity Engine
Smart Router