Liquidity Providers

LPs are the financial backbone of the protocol. Their capital seeds new Lotry curves, backs prize pools, and ensures that trades and payouts remain smooth.

Primarily helps fix the chicken and egg problem as we build towards larger pools.

LPs deposit stablecoins (or Lotry tokens) into protocol liquidity pools. This liquidity is used to:

  • Seed new Lotry bonding curves

  • Back daily and Powerball prize pools

  • Enable lower slippage for token trading

Rewards for LPs

LPs earn a share of protocol revenue and additional Points based on how long they keep their liquidity locked.

Lock Period
Multiplier
Description

7 days

1.1x

Flexible liquidity

30 days

1.3x

Standard period

90 days

1.6x

Long-term commitment

180 days

2.0x

Genesis LP tier

Formula: LP Reward = (Protocol Revenue × Share of LP Pool) × Lock Multiplier

LPs can choose between two modes:

  • Liquid LPs, who can withdraw anytime but get a lower multiplier.

  • Locked LPs, who commit for longer terms with higher rewards.

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