Liquidity Providers (LPs)
The protocol can support many exchanges where each exchange has a single collateral and a single LP pool.
Markets belong to a single exchange. Each market's counterparty for trading is its associated exchange's LP pool. LPs underwrite and clear all trades, collect the majority of trading fees that they split with the protocol, and act as that particular exchange's insurance fund. It is as if the LP pool has a monopoly market making privilege on its exchange's markets.
The protocol's risk management features promote a delta neutral LP experience by creating incentives to decrease market skew and levying penalties on trader who increase market skew.
If risk management settings are insufficient for maintaining balanced markets, then governance adjusts the exchange and/or market settings. Additionally, governance and the community is responsible for fine tuning protocol settings over time.
24-hour settlement delay. This delay serves as a security feature. π¨ However βΒ USDC that is pending transfer cannot be used to open new trading and LP positions prior to the 24-hour settlement delay window.
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