Liquidity Providers

Vest is designed to properly compensate and create fair, sustainable returns to LPs. This is achieved via...

  1. Rewarding LPs with risk-adjusted Premia - dynamic fees that are paid to compensate LPs for their risks of being counterparty

  2. Rewarding LPs with a fixed taker fee - fixed fees to paid to LPs in exchange for using their liquidity

  3. Protecting LPs with AMM capital - buffer that accrues over time and shields LPs from profitable traders.

    1. Should the AMM run out of capital, trades will then be opened against LPs while the AMM accrues fees to return to its original state.

This enables LPs to earn consistent interest via fees without fear of a single profitable trading day wiping out years of interest.

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