liquidity providers (LPs)
Coverage of liquidity providers (LPs) in the Nexus archive.
- Why is 90% of LP capital sitting idle and what would a fix look like?
Liquidity providers (LPs) on Base face the issue of 90% of their capital being idle due to limited on-chain opportunities, forcing them to either split capital across chains for worse returns or miss opportunities. The article proposes a solution where the same deposit could back liquidity on multiple chains simultaneously without bridging or splitting, maintaining non-custodial control.
- Why do LPs keep getting rekt by the protocols they support?
The article discusses how liquidity providers (LPs) in blockchain protocols often face dilution due to inflationary tokenomics, where early participants benefit while long-term LPs are harmed. It questions whether protocols can align incentives to sustain liquidity without relying on temporary solutions like token locks.
- the curve wars feel like ancient history now tbh
The article reflects on the evolution of DeFi from complex yield farming strategies in 2021 to a current focus on community-driven liquidity and high-velocity tokens. It highlights the shift from gas-intensive optimization across nested protocols to simpler pools prioritizing community tokens and organic market dynamics.
- Anyone else just letting LPs run more passively in this market?
The article discusses how current market conditions—characterized by choppy prices and reduced volatility—are shifting liquidity provider (LP) strategies toward passive, automated approaches. It highlights a growing trend of minimizing active management in favor of lower-friction setups, as DeFi activity, particularly on Layer 2 (L2) platforms, continues to evolve.