Provide liquidity
Goal: you want to support Aureus markets and earn trading fees.
How it works
Section titled “How it works”Traders buy and sell PT and YT against pools. As a liquidity provider (LP), you add assets to those pools and receive a share of the fees traders pay. Because pools are quoted against PAXGy, the PAXGy side keeps earning its yield while it sits in the pool.
| Pool | Assets |
|---|---|
| PT / PAXGy | Principal Token and PAXGy for one maturity |
| YT / PAXGy | Yield Token and PAXGy for one maturity |
Steps in the app
Section titled “Steps in the app”- Open the app and connect a testnet wallet.
- Choose Provide Liquidity.
- Select a maturity and a pool (PT / PAXGy or YT / PAXGy).
- Enter the amounts and confirm.
- Withdraw your share of the pool, including accrued fees, at any time.
Things to know
Section titled “Things to know”- What you earn: a share of trading fees, the yield of the PAXGy in the pool, and on PT pools the PT side moving toward its redemption value. No token rewards are promised.
- Price risk: if PT or YT prices move, the value of your pool share changes, and you may end up holding more of the asset that fell.
- YT decay: YT value trends toward zero at maturity, which affects YT / PAXGy pools.
- Testnet: the MVP starts with protocol-seeded pools. Testnet assets have no monetary value.