Liquidity Providers

Liquidity providers are the backbone of decentralized finance (DeFi) protocols. They provide the necessary liquidity for users to trade and borrow assets, and in return, they earn rewards for their contributions. The leNFT protocol has been designed to optimize the incentives for liquidity providers, making it an attractive proposition for those looking to earn rewards by providing liquidity. Here are some of the use cases for liquidity providers on the leNFT platform:

1. Trading Pools: Trading pools on the leNFT platform utilize the Automated Market Maker (AMM) model based on the lssvm model popularized by SudoSwap, which aims to provide the most efficient liquidity utilization resulting in more profits for LPs and better pricing for traders. Liquidity providers can deposit their assets into these pools, and in return, they earn a percentage of the trading fees. The leNFT protocol allows liquidity providers to deposit not only Ethereum (ETH) but also Non-Fungible Tokens (NFTs), providing a unique avenue for NFT holders to earn rewards from their assets.

2. Lending Pools: Lending pools on the leNFT platform enable NFT holders to borrow against their assets. Liquidity providers can deposit their ETH into these pools, and in return, they earn a percentage of the interest payments made by the borrowers.

3. Gauges: After depositing assets into a pool, liquidity providers receive an ERC721 (trading pools) or an ERC20 (lending pools) token which can be staked in the pool's gauge for extra rewards in the form of LE tokens. The leNFT protocol enables each pool to have its own gauge, directing LE incentives to its own liquidity. The gauges are created by the dev team initially, a process that will be replaced by a DAO proposal submission and approval vote in the future.