Liquidity
Provide liquidity to Perp City markets.
As a maker, you deposit USDC into price ranges and earn fees when trades execute within your range.
Overview
| Leverage | 1x (fully collateralized) |
| Lockup | 7 days minimum |
| Earnings | ~0.75% of volume in range |
| Collateral | USDC |
How It Works
- Select a market
- Choose a price range: narrower ranges earn more but risk going inactive
- Deposit USDC margin
- Earn fees when trades happen in your range
Your liquidity is locked for 7 days. After that, you can withdraw anytime.
Directional Exposure
When takers trade, you become their counterparty. If a taker goes long, you're effectively short. This exposure can result in gains or losses beyond your fee earnings.
Range Selection
Narrower ranges earn higher APY when price stays in range, but become inactive if price moves out. Wider ranges earn less but stay active across more price movement. Place your range around the current mark price for immediate activity.
Earnings
Makers earn LP fees of ~0.75% on taker notional volume that trades through their range, plus utilization fees, which are continuous payments from takers based on how much liquidity is being used.
Risks
You take the opposite side of every taker trade in your range, so net long flow means you're effectively short. If price moves outside your range, you stop earning fees until it returns. You also pay or receive funding based on your net exposure. If your margin ratio falls below 50%, your position can be liquidated.