dYdX Introduces LP Vaults to Boost Market Liquidity, Especially for New Markets with Limited Liquidity
The decentralized exchange dYdX is planning to launch LP Vaults (vaults) with the aim of boosting liquidity on all markets using the dYdX Chain software. This initiative is particularly designed to support new markets, which often suffer from a lack of liquidity.
dYdX Trading advises limiting deposits to moderate volumes and community funds until there is further clarity about the risks associated with LP Vaults. Manual deposits of USDC will be made into a single module account for each market, with shares tracked by querying the on-chain vault state.
