Liquidity Providers

This guide will walk you through the complete onboarding process for Liquidity Providers (LPs) within the Dexponent Protocol. As an LP, you will supply capital to Farms in exchange for rewards and yields. You will be instructed on how to get started, understand reward structures, manage early withdrawals, fulfill compliance requirements, track your investment performance, and optionally create your own liquidity pools.

Getting Started as LP

To become an LP, you deposit a farm’s principal asset (ETH or an ERC20 token) into a strategy that generates returns over time. In return, you earn rewards and access yield opportunities based on your preferences.

What you'll need to do:

1. Visit the Dexponent dashboard.

2. Pick a Farm that supports the token you want to deposit.

3. Approve the token in your wallet if asked.

4. Enter the amount to lock in your asset according to your choice of maturity period, and view the corresponding APR for that duration.

Once you deposit, you’ll start earning rewards and see your investment working for you.

Why Become an LP?

1. Get upfront $DXP rewards upto 75%.

2. Withdraw your funds whenever you want.

Understanding Rewards and Returns

Instant Rewards You will receive a predefined amount of $DXP tokens as a one-time incentive at the time of deposit. This mechanism is designed to incentivize liquidity provisioning and protocol alignment.

Yield Generation

• Your deposit asset will earn yield in the form of the same asset, however you will have a option to either withdraw the yield in the form of your principle asset or equivalent amount of DXP tokens.

• Yield is unlocked upon Farm maturity to ensure sustainability and reward long term commitment.

Early Withdrawal Policy

If you choose to withdraw before maturity:

• You are required to return the $DXP tokens received at the time of deposit.

• A withdrawal fee will be applied to your earned yield. This is designed to maintain fair play and discourage premature exits that harm protocol stability.

Compliance and KYC Requirements

Certain Farms may impose KYC (Know Your Customer) restrictions for regulatory compliance.

To Participate in KYC-Restricted Farms:

1. Acquire a Draft NFT: This NFT signals your intent to participate in a restricted Farm.

2. Complete KYC Verification: Follow the on-chain or off-chain process as prompted to verify your identity.

3. Receive a Soulbound NFT: Upon successful verification, your wallet is issued a non-transferable Soulbound NFT, acting as proof of compliance.

4. Start Investing: With the Soulbound NFT in place, you are now eligible to contribute liquidity to all compliant Farms

Tracking and Optimisng Investments

Dexponent equips LPs with full on-chain transparency and tools to optimize strategy performance.

Key Features:

• Real-Time Tracking: Monitor portfolio allocation, live yields, and reward distribution directly from the dashboard.

• Security Audits: View audit history and protocol safety reports for each Farm.

• Historical Data Analysis: Evaluate performance trends and risk metrics to make informed reinvestment decision.

Creating your desired Liquidty Pools

Steps:

1. Navigate to the "Create Farm" module.

2. Define pool parameters:

   • Supported asset (ETH/ERC20)

   • Strategy logic (select from pre-integrated modules or upload custom logic if permitted)

   • Duration & lock-up period

   • Reward structure

3. Set up access control:

   • Public or Whitelisted participation

   • Optional KYC enforcement

4. Deploy the contract.

5. Deploy the contract.

6. Deploy the contract.

Final Notes

That’s it! You’re now ready to start as a Liquidity Provider on Dexponent. This guide has covered the basics, helped you understand how rewards work, and shown you how to track your performance or even launch your own pool.

If you ever get stuck, check out the FAQs, developer docs, or hop into our Discord community. We’re here to help.