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Liquidity
Protection and Freedom.
Table of Contents
Freedom
Deepwaters allows single-sided deposits. Because your tokens are not locked into a specific purpose, you can earn from all trading pairs simultaneously.
Stake your desired asset on its native chain. Deepwaters is natively composable with Ethereum, Avalanche, Polygon, and BNB Chain. We will add additional chains over time.
Protection
DEXs treat liquidity providers as sacrificial. Their assets are simply what gets traded against. LPs assume a volatility-based risk but receive volume-based rewards. This disconnect leads to most liquidity providers realizing negative returns vs. a simple buy-and-hold strategy due to impermanent loss.
In Deepwaters, LP’s assets are used differently. LP’s assets underwrite a range of activities on our platform, such as market making and leverage. Liquidity providers are still rewarded based on volume, however serve a role more akin to underwriters. This mitigates risk, especially over longer time horizons.