Liquidity Provider

Maximize Earnings by Providing Liquidity

At AZEx, Liquidity Providers (LPs) are integral to maintaining the liquidity that powers the perpetual contract market. LPs can add any ERC-20 token to liquidity pools and earn returns from multiple revenue sources, ensuring their participation is both profitable and impactful.

How It Works

1. Add Liquidity: LPs can contribute any ERC-20 token to the liquidity pool, which serves as the treasury for the perpetual trading market.

2. Earn Multiple Revenue Streams:

   • LPs earn transaction fees, position fees, and margin liquidation fees generated from trader activity and liquidation events.

   • Additionally, LPs receive a share of funds from positions that are closed or liquidated, increasing their returns.

3. Liquidity Farming:

   • The protocol periodically incentivizes LPs who provide liquidity with AZT tokens as part of rewards. Specific tokens contribute to mining, boosting earnings for LPs who use these tokens in the liquidity pools.

4. Yield Farming:

   • LP funds are also routed by smart contracts to other DeFi protocols such as DEXs, lending platforms, and yield-generating products for farming. This allows LPs to earn additional rewards from farming opportunities, expanding the earning potential of their liquidity contributions.

Key Benefits

• Multiple Sources of Income: Earn transaction fees, position fees, liquidation fees, and AZT tokens through transaction mining.

• Diversified Returns: Funds are automatically utilized in other DeFi protocols for yield farming, creating an additional layer of profit.

• Incentivized Participation: AZT token rewards incentivize liquidity provision, helping to grow the platform’s liquidity while rewarding LPs.

• Secure and Automated: All processes are handled via secure, on-chain smart contracts, ensuring transparency and reducing operational risk.

As an LP on AZEx, you can enhance your DeFi participation by diversifying your earning opportunities across multiple platforms while benefiting from an efficient, automated, and highly rewarding liquidity provision model.