A step-by-step guide to Providing Liquidity on Cryptex
<aside> 💡 TLDR: As a liquidity provider (maker), a user takes the counter position to traders (takers), earning a funding fee + potential taker losses + rewards in the process.
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Cryptex pereptual futures are two-sided markets that trade exposure to an underlying price feed. Traders (takers) deposit collateral to get leveraged exposure to long & short price feeds. Liquidity Providers (makers) pool capital in the protocol to earn fees for taking the other side of Taker trades.
Providing Liquidity is autonomously provisioned, meaning it is automatically recalculated depending on trading activity. Users are currently able to provide USDC in exchange for funding on Cryptex. For a step-by-step guide on how to provide, click here.
There is a fee that is charged across the entire pool of liquidity when it is autonomously provisioned to the other side of the trade. However, this fee might vary based on how the vault re-adjusts liquidity depending on market conditions.
Users are able to Provide Liquidity on the Cryptex dApp on Arbitrum.
For a step-by-step guide on how to Provide Liquidity, click here.
For a step-by-step guide on how to earn LP Rewards, click here.
For a step-by-step guide on how to claim LP Rewards, click here.