Mining (AMM Liquidity Mining)

Liquidity

Overview

Liquidity Providers cover the discrepancy of trading positions between long and short positions for each of the trading symbol of the specific trading pool they added liquidity to. So if the long positions of a trading symbol exceed the short positions, then the liquidity providers in this event take over the short side. In the opposite case, if the short positions of a trading symbol exceed the long positions, liquidity providers would take the long side, to cover the discrepancy of missing positions between the both. Covering the discrepancy opens up a potential market risk for liquidity providers, but also the potential to earn a share of the traders' losses.

So in general, it is essential to comprehend that liquidity providers are the counterparts of traders on DUET Protocol. When traders realize profits, they do so at the expense of liquidity provider's provided liquidity. When traders realize losses or are liquidated, liquidity providers realize profits at the expense of traders.

Highest Transaction Fee Return Liquidity providers (LPs) play a crucial role in the functioning of decentralized exchanges, and Duet Pro offers attractive incentives for them. With the highest transaction fee return in the industry (up to 80%), LPs can earn substantial income by providing liquidity to the platform.

Accumulating Positive Returns By participating in Duet Pro's trading activities with retail traders, liquidity providers can accumulate positive returns with maximum probability. This feature makes Duet Pro an appealing option for those looking to invest in the platform as LPs.

Diversification and Risk Hedging Nature This diversification of the listed assets is particularly advantageous for Duet Pro’s LPs as it reduces liquidity providers’ exposure to risks associated with crypto trading only. For most DeFi protocols, the assets traded on the platform are crypto only and are very likely to move in the same direction as the market fluctuates, which increases the risks of LP failure. For Duet Pro, the traded assets are highly diversified, balancing the risks and returns of the portfolio, guaranteeing the overall stability of the LPs.

More details are coming soon.