Vault & Liquidity

The Vault is where you can provide liquidity to the trading pool and earn a share of trading fees.

How It Works

When traders open leveraged positions, they borrow from the liquidity pool. As a liquidity provider (LP), your deposited USDC is used as the counterparty to these trades. In return, you earn a portion of the fees generated from every trade.

Adding Liquidity

1. Navigate to the Pool page
2. Enter the amount of USDC you want to deposit
3. Confirm the transaction

You'll receive LP tokens representing your share of the pool.

Removing Liquidity

1. On the Pool page, switch to the withdraw tab
2. Enter the amount to remove
3. Confirm the transaction

Your LP tokens are burned and you receive USDC back, plus any fees earned.

Pool Statistics

The Pool page displays key metrics:

• TVL - Total Value Locked in the pool
• Utilization - Percentage of pool funds currently borrowed by traders
• Borrow Rate - Current rate charged to leveraged positions
• Token Distribution - Breakdown of collateral in the pool

Risks

Providing liquidity is not risk-free. When traders profit, the pool pays out those gains - meaning LPs can experience losses during periods of consistently profitable trading. Over time, trading fees are designed to compensate for this risk.