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Yield, sustainability, & risk-adjusted yield
There are three things Derivio's liquidity providers should know: 1. LPs own a share of the asset basket and can swap anytime with any asset in the pool.
2. LPs share the revenue (PnL & trading fee) paid by derivatives traders.
3. Liquidity pools are protected by Derivio's market-neutral liquidity design, especially under volatile market conditions.
Derivio generates sustainable yield from the turnover of all trading activities for its liquidity providers, who are effectively acting as a market-neutral market maker with extreme capital efficiency & risk optimization.
Here is Derivio's quant-tailored index vaults composition; the decisions are made based on a comprehensive & quantitative analysis of market cap, derivatives turnover/open interest, respective tokenomics, volatility, & long/short demand.
DLP-M: ETH, BTC, USDC, USDT, DAI
By holding DLP-M, the liquidity provider is effectively holding an index that is composed of the most dominating assets in crypto.
DLP-B: Coming soon...
By holding DLP-B, the liquidity provider is effectively holding an index that is composed of the most promising blue-chip DeFi tokens.
In the future, staking derivatives such as stETH will be enabled in the pool / market listing.