Liquidity Providers
Last updated
Last updated
Liquidity providers (LP) offer funding to the perpetual derivatives protocol by staking their funds. This enables traders to buy and sell over 150,000 types of financial derivatives. In return, LP stakers earn high yields by locking up their tokens over a set period, taking on risk by funding these derivative trades.
Liquidity providers, also known as yield farmers, typically earn higher returns compared to network stakers (NS), who enjoy more sustainable returns. Both LPs and network stakers play critical roles in the ecosystem, but RCOF network stakers differ in that they contribute to network stability by locking tokens within the protocol. This action increases Total Locked Value (TLV) in the network and reduces the overall token supply of $RCOF.
