Liquidity Providers are users who will provide liquidity to the vaults in the interest of generating yield. The vast majority of liquidity providers are set and forget users who focus entirely on APY and the associated risk. There are also liquidity providers who will pay close attention to everything!
Liquidity providers are responsible for providing liquidity to all of the vaults. This can be in whatever asset that the vaults may offer. For example, the dynamic hedging vault would take USD.
- Liquidity providers get access to uncorrelated, risk-adjusted, sustainable yield, with the peace of mind that their funds are growing, only with the risk that they are aware of.
- Liquidity providers will get access to uncorrelated return streams.
- Their funds will gain high yield in all market conditions as yield is derived from financial engineering and sustainable sources instead of "seasonal" token emissions.
- Liquidity providers will have access to more complex financial instruments that they will have not had access to before, not in DeFi and especially not in TradFi.
- Liquidity providers abstract away the gas fees of running these complex transactions, improving their capital efficiency.