🌊Providing Liquidity via Earn

Learn how to provide liquidity to the Earn vaults.

Perennial Finance works by having a three sided market: Long Positions, Short Positions & Maker positions. The markets are natively net out the long & short positions but when there is a skew in the market we use Maker collateral to back the trades until the markets return to a flat skew.

At times your collateral will take on directional exposure when markets are imbalanced. This can cause outsized returns or losses associated with the outcome of taker positions on the platform.

You could provide liquidity to directly to each market, however that would be a cumbersome process. So to make life easier we've built Vaults which allows you to desposit your USDC into multiple markets as the same to earn a blended yield from various markets.

How to Provide Liquidity via Earn

Step 1: Navigate to the Earn page

After opening the web app & connecting your wallet, navigate the Earn page.

Step 2: Select the Vault you would like to deposit into

Choose which vault you'd like to deposit into by selecting one of the cards on the left. You can see which markets are included in each vault and their expected APR.

Step 3: Enter the amount you want to deposit

Fill in the form on the right with the amount of USDC collateral you'd like to deposit into the vault. The form will show you the fees associated with the deposit and if there are any extra rewards available.

Step 4: Follow the Deposit prompts

Once you click Deposit, you'll see the confirmation dialog. After checking to see the deposit amount correct, you'll first need to signa a transaction to approve the operator. This allows for the protocol to deposit your USDC into the vaults. Then after that transaction confirms, click Deposit to finalise the transaction into the vault.

Step 5: View your position

Once the transactions confirm you'll see your positions reflected in the box at the top left. it'll show you the value of your position and the PNL. Note: Extra reward are shown separately on the Rewards tab.