> For the complete documentation index, see [llms.txt](https://derivio.gitbook.io/v1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://derivio.gitbook.io/v1/providing-liquidity.md).

# Providing Liquidity

In phase one, Derivio offers 2 different **DeFi** [**Super Derivatives Vaults**](/v1/providing-liquidity/super-derivatives-vaults.md): DLP-M (Main), DLP-B (Blue Chip).

There are three things Derivio's liquidity providers should know:\
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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](https://www.investopedia.com/terms/m/marketneutral.asp#:~:text=What%20Is%20Market%20Neutral%3F,specific%20form%20of%20market%20risk.) market maker with extreme capital efficiency & risk optimization. 

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**Composition:**
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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.

![](/files/gL1gaZZymh3n0hercKLN)

`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.*

![](/files/esJ1v9aaVk1EVLatq0e5)

`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.\ <br>