Earn by Providing Liquidity through ALP
Last updated
Last updated
Users interested in providing Liquidity to enhance the trading experience on Automatic are rewarded with an industry-leading fee structure and benefit from built-in safeguards to reduce the risk of loss, up to $10,000 per wallet per Quarter.
When you deposit an asset into ALP's index as collateral on Automatic, you are providing Liquidity to the ecosystem for everyone's benefit, and in doing so, you are generously rewarded by the Automatic Foundation. As more collateral is deposited into ALP, more and more users join the ecosystem as the ability to grow and enhance position size increases, accelerating growth and exposure across DeFi.
Because theoretically unlimited assets can be deposited as collateral, the supply of ALP is uncapped, though ALP itself is not tradable in the conventional sense. Assets you deposit into the index as collateral are "converted" to ALP, which automatically rebalances each week based on the platform's present collateralization needs ("C-Ratio").
ALP is not tradable on Uniswap or on the open-market. It is a platform-only liquidity pool which is responsible for distributing rewards to profitable traders and receiving collateral from unprofitable traders. ALP providers automatically earn fees, receive the benefit of hedging against financial loss, and are rewarded with accelerated yield. ALP is automatically staked.
There is a 60-minute built-in timer between minting ALP and redeeming it for your collateral asset.
