Thetis LP Overview
Thetis Liquidity Providers (LPs) are integral to the ecosystem, supplying liquidity for both perpetual and spot trading on the platform. By contributing assets to Thetis liquidity pools, LPs facilitate seamless trading operations and are rewarded with trading fees.
Becoming a Liquidity Provider (LP)
Contribute Assets: Add assets or tokens to Thetis Liquidity Pools, such as BTC/USD, ETH/USD, or APT/USD pools.
Receive LP Tokens: Each LP token represents a share of the pool, e.g., BTC/USD LP token for the BTC/USD pool.
Pool Access: Any supported token on Thetis can be used to contribute to liquidity pools.
Fees: Be aware of potential fees associated with contributing to the liquidity pools.
Rewards and Earnings
Fee Distribution: LPs earn a share of 70% of all trading fees, distributed based on their share of the pool.
APR: The rewards form an Annual Percentage Rate (APR), which is higher with increased trading volume.
Automatic Accumulation: Earnings are automatically embedded within LP tokens, simplifying the earning process.
Advantages of Thetis Liquidity Pools
Automatic Earnings: Earnings are embedded within each LP token and accumulate automatically, eliminating the need to actively stake tokens or harvest yields.
Transferability: LP tokens are easily transferable and tradable within the Aptos ecosystem.
No Early Trade Closures: The LP model of Thetis ensures that trades are not closed prematurely, unlike perpetual trading DEXes that use synthetic models such as Merkle Trade.
Isolated Liquidity Pools: The isolated liquidity pool model mitigates financial contagion risks. Poor performance of one token affects only its specific pool, not others, allowing users to add liquidity only to pools of tokens they are interested in.
Example of Contributing to a Pool
To contribute to the BTC/USD pool, add BTC and USDC assets. The pool’s performance and your share are tracked through the LP tokens you receive. The APR and asset distribution can be viewed on the liquidity dashboard.
By providing liquidity, LPs not only earn fees but also contribute to the stability and efficiency of Thetis’s trading environment, ensuring a seamless experience for all traders.
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