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One way Makers can provide liquidity to markets via a vault. Vaults abstract away some of the complexities of Perennial's core protocol, allowing for a more seamless experience.
At a base level Vaults consolidate collateral & open maker positions on markets. They take on delta (directional) exposure exposure when there is an imbalance between long & short. In exchange, they recieve interest & funding from makets they are making.
LP's still have the option to LP directly into markets (pick and choose markets, customize position parameters, etc.). See Advanced LP
Vaults can be configured to supply liquidity to either one or multiple markets by the vault owner. The exact division of liquidity into each market is also configurable.
This allows for a number of benefits unique to Perennial:

Bootstrapping Markets

The cold start problem in derivates is a significant challenge for creating new markets: no liquidity -> no trading volume -> no liquidity.
With vaults, nascent markets can be bootstrapped by the vault owner provisioning excess liquidity from existing markets to new markets.

Diversified Yield

Vaults enable liquidity providers to receive yield from multiple markets at once. This simplifies the liquidity provisioning for a solo provider and can provide more consistent returns from multiple markets instead of a single one.