Whitepaper
  • Introducing RCO Finance
  • Market Challenges
    • I. Intermediary Involvement
    • II. Transaction Time
    • III. Complex Interface
    • IV. High Transaction Fees
    • V. Limited Liquidity
    • VI. Inaccessibility
    • VII. No Diverse Assets
    • VIII. Lack of Interoperability
  • Architecting the Solution
    • I. Decentralized Infra
    • II. Dividend Pools
    • III. Staking Pools
    • IV. DeFi Debit Card
    • V. Private ETF Funds
    • VI. Ergonomic Interface
    • VII. Wide Range of Assets
    • VIII. AMM
    • IX. Borrowing & Lending
    • X. AI-Based Copy Trading
  • AI-Powered Robo Advisor
    • Recommendations
    • Transaction Execution
    • Automated Liquidity
    • Machine Learning
    • Decision-Making Process
  • Security Integration with Fireblocks
  • Tokenomics
    • $RCOF Utilities
    • Token Allocation
    • Staking Model
    • Liquidity Providers
    • Vesting Schedule
  • Revenue Stream
  • Revenue Distribution
  • Roadmap
  • FAQs
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  • Liquidity Providers
  • Role of LPs & Network Stakers
  1. Tokenomics

Liquidity Providers

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Last updated 7 months ago

Liquidity Providers

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.

Role of LPs & Network Stakers

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.