⚡Liquidity Providers

Like any exchange, Lamda.exch requires liquidity to function. Similar to other types of exchanges, we attract liquidity with incentives to stake on our platform. Liquidity providers earn a large percentage of platform fees.

Anyone can become a liquidity provider and contribute to the liquidity pool. The liquidity pool is the counter-party for all positions opened by traders. The notational value of each position up to their liquidation value is earmarked in the liquidity pool when a new position is opened and can no longer be used for any other trade. In other words, the liquidity pool backs all platform positions up until their liquidations plus a buffer in case of rapid market movements.

Benefits

• Revenue sharing - LPs will receive a large portion (over 50%) of platform fees

• Vested LMX tokens - LPs will receive vested distributions of our utility/governance tokens that will be gradually unlocked over time

• No lock up period - Swap back to USDC with no restrictions

Risks

Before participating in the liquidity pool, be aware of the risks involved. The liquidity pool is the counter-party to all positions on Lamda.exch. In other words, participants in the liquidity pool are themselves the counter-party to every position opened by traders.

All funds held by the protocol will be secured with a multi-sig held by Lamda.exch developers and trusted community leaders. Details will be announced prior to mainnet launch.