MadHoney
  • 🐻Enter the Mad World
  • 🍯Welcome to the Den
    • 🔗Official links
    • 🛣️Roadmap (a.k.a. "Where Are We Going, Fren?")
  • 📈MadPerps
    • 📈Trading
    • 💰Liquidity provision
    • 💵Fee structure
    • 🤝Powered by D8X
    • 🏆Trading competition
      • Week 1
      • Week 2
      • Week 3
  • 🎲MadMachine
  • 💸$MADNOMICS
  • 🐻The Mad Bears
  • 👨‍💻User guide
    • 💹How to Trade Perps on MadHoney
    • 💵How to provide liquidity
  • 🔓Security (a.k.a. "How We Keep the Bears Safe")
  • 🤝Partnooors (a.k.a. "The Bears Roll Deep")
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  1. MadPerps

Liquidity provision

How liquidity provision works

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Last updated 2 months ago

MadPerps has one main liquidity pool. Liquidity can be provided in selected USD stables, including $HONEY and $NECT. All perpetuals in the pool share the same collateral currency. Collateral currency is the currency in which the margin is held and payments are made. As a trader you decide which USD stable you are going to trade in while interacting for the first time with MadPerps.

Anyone can deposit collateral currency into the liquidity pool and receive a poolshare token in return. As an LP you participate in profit and loss of the perpetuals and earn trading fees. LPs can add and withdraw funds. The poolshare token plays a key role in the tokenomics of $MADNOMICS .

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