Overview

The LP (Liquidity Provider) Vaults on the Hanji Protocol serve as a cornerstone for enabling passive liquidity provision within the ecosystem. By depositing funds into these vaults, Liquidity Providers (LPs) play a crucial role in facilitating efficient trading and market-making activities across the Hanji Protocol.

In return for their contribution, LPs earn rewards generated from the trading operations and market-making strategies employed by the vaults. The primary goal of the LP Vaults is to offer users an effective and largely passive way to utilize their assets, while simultaneously ensuring a robust and liquid trading environment on the Hanji Protocol.

Hanji offers different types of LP Vaults, each with distinct strategies and asset compositions. This allows LPs to choose options that best align with their investment goals, risk tolerance, and desired asset exposure. The subsequent sections will detail the specifics of each available vault type: the Multi-Asset LP Vault and the Single-Token LP Vaults.