Liquidity overview
Understand liquidity provider roles in Timu price markets.
What LPs do
Liquidity providers supply capital that makes markets usable. In return, they may earn fees, but they also absorb market risk.
Price liquidity
Price LPs add collateral to a shared pool. Each deposit creates a liquidity lot that records your principal shares, Funding entitlement, and optional fee-sharing weight in one place. Lot value moves with the pool's aggregate performance, and exits are guarded pool actions that carry digests, deadlines, and minimum-output protection.
The current committed protocol baseline is Pool v24. Older price-market deployments, such as v22 and v23, use different lot, fee-sharing, and exit mechanics. Follow the active deployment's version when you act onchain.
Earn Vaults
Some deployments can wrap one price-market LP strategy in an ERC-4626 Earn Vault. Vault shares simplify proportional ownership, but they do not remove LP counterparty, oracle, keeper, buffer, fee, or exit risk. Availability is deployment-dependent.
Fees are not guaranteed profit
LP fees compensate for taking risk. They do not guarantee positive returns. Market moves, trader wins, liquidation outcomes, oracle changes, and withdrawals can all affect LP value.
Before adding liquidity
Check:
- collateral token
- lot rules, including fee-sharing locks
- exit guards, such as expected digests, deadlines, and
minCollateralOut - the separate Funding and fee claim paths
- market status
- current exposure and liquidity depth