Liquidity providers are no longer just waiting on the sidelines. Here's how the model is shifting: On most protocols, LPs contribute capital and sit tight. But there's a different approach emerging. When you provide liquidity on platforms rethinking this model, your capital doesn't just sit idle. Instead, you're actually making markets—directly participating in price discovery and execution. Meanwhile, your position generates yield from underlying assets like sUSDe, while simultaneously earning a cut from trading fees and liquidation fees flowing through the platform. The shift in thinking is significant: you're not chasing token rewards through generic farming. You're building ownership stakes in actual trading infrastructure—the backbone that makes markets function. That's a fundamentally different value proposition.
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DegenDreamer
· 21h ago
Finally, someone has clarified this issue: LP is no longer a passive ATM.
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CryptoMom
· 01-04 16:35
Wow, this is what a real LP should do, not just a job to milk users for profit.
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ForkYouPayMe
· 01-04 05:55
ngl this is real market making, not the kind of just holding onto tokens and sleeping through airdrops.
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FromMinerToFarmer
· 01-04 05:54
Uh, this is what liquidity provision should look like. The previous way of just lying around earning tokens really isn't interesting.
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ContractFreelancer
· 01-04 05:52
LP earns a lot, earning both yield and fees... This logic is much more comfortable than just mining alone.
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LiquidityLarry
· 01-04 05:48
ngl this is what LP should look like, not that passive "sit back and earn" feeling
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GateUser-75ee51e7
· 01-04 05:40
It's not just about sitting and waiting for returns anymore; this is the liquidity model I want.
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BearMarketMonk
· 01-04 05:39
It sounds great, but essentially it's just a different way to scam retail investors. The previous bull market's "liquidity mining" was also described this way, but what was the result?
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BTCWaveRider
· 01-04 05:35
Another "revolutionary" LP model? Basically, it turns us from passive investors into active market makers. Sounds appealing, but can it really make money...
Liquidity providers are no longer just waiting on the sidelines. Here's how the model is shifting: On most protocols, LPs contribute capital and sit tight. But there's a different approach emerging. When you provide liquidity on platforms rethinking this model, your capital doesn't just sit idle. Instead, you're actually making markets—directly participating in price discovery and execution. Meanwhile, your position generates yield from underlying assets like sUSDe, while simultaneously earning a cut from trading fees and liquidation fees flowing through the platform. The shift in thinking is significant: you're not chasing token rewards through generic farming. You're building ownership stakes in actual trading infrastructure—the backbone that makes markets function. That's a fundamentally different value proposition.