Liquidity provision

Forward specification

This page describes the intended design, not shipped software. The only behaviour live on-chain today is synthetic position creation. The $TRANT token, bonds, staking, liquidity pools and mining, trading, liquidation, and oracle mechanics described across these pages are specified but not built or deployed. See Technical overview.

Synthetics are only useful if you can trade them at a fair price. Deep liquidity fills orders quickly with little slippage; thin liquidity means wide spreads and failed trades, a well-stocked kitchen versus a thin pantry and a long queue. Liquidity providers supply that depth: they deposit a pair of tokens into a pool and earn a share of the fees from every trade against it, plus liquidity-mining rewards.

Who is a liquidity provider?

In traditional markets, banks, financial institutions, and principal trading firms act as market makers. Decentralised exchanges replace them with liquidity pools. There is no requirement to become a liquidity provider (LP) other than holding the two assets a pool pairs.

Connect an EVM wallet to the TRANT app, which connects to the underlying contracts on Robinhood Chain, and select a pool, for example a synthetic paired with its collateral, or $TRANT paired with a collateral asset. Deposit your assets and, whenever other users swap that pair, the protocol fills the trade against the pooled reserves and gives providers a cut in the form of trading fees proportional to their share. This is an automated market maker (AMM): assets trade permissionlessly and automatically against pools rather than against a traditional book of buyers and sellers.

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