🔬
Product Docs
  • Welcome to AZKA FINANCE
  • AZKA Token Murabaha Overview
    • General
    • System Components
    • Protocol Architecture
    • Token Types
    • Use Cases
    • AZKA RoadMap
  • Murabaha Pools V1
    • Providing Liquidity
    • Pool Metrics
    • vROI
    • Murabaha Fee Rate Curve
    • Shariah Considerations
  • Executing Murabaha V1
    • Pre-Requisites
    • Initiating Murabaha
    • Executing Murabaha
    • Quote Methodology
      • Amount of Murabaha Token Required (AMTR)
      • Required Amount of Currency (RAC)
    • Shariah Considerations
  • Managing Murabaha V1
    • Managing Murabaha
    • Liquidation Parameters
    • Liquidation Mechanics
    • Shariah Considerations
  • Token Murabaha Risk Framework
    • General
    • Asset Risk
    • Liquidity Pool Risk
    • Liquidation Risk
    • Risk Parameters
  • AZKA Token Design and Tokenomics
    • General
    • Specific Utilities (AZKA, vAZKA, dLP)
    • Token Distribution
    • vAZKA
      • vAZKA Reward Distribution
    • dLP (Dynamic LP)
      • Initiating dLP
      • vAZKA Murabaha Eligibility
      • Managing Eligibility
      • Claiming vAZKA
  • Governance
    • General
    • DAO Structure and Policies
    • azTeams
  • Developer Docs
    • Murabaha Pools
    • Executing Murabaha
    • Liquidations
Powered by GitBook
On this page
  1. Murabaha Pools V1

Providing Liquidity

A description of LP user flow and interactions

  1. Liquidity Providers should initially go to the Analytics page for the pool they want to deposit into and asses available metrics such as TVL, vROI, Pool Utilisation, weighted average Murabaha Duration (WAMB), etc to manage their expectations and make feasible assumptions. More on these metrics below.

  2. Deposit into the specific Murabaha pool (azPool) of choice, ie USDT, USDC, ETH, WBTC. The LP may incur a deposit fee depending on whether or not Governance has activated such a fee to incentivise staying in the pool for some minimum duration. If the pool has activated eAZKA rewards, the LP will be eligible for these rewards providing that they meet the 'dLP eligibility requirement'. (See eAZKA Reward eligibility in the dLP section of AZKA Token Design).

  3. Receive a ‘Share Token’ (az'Token') representing their pro-rata share of the pool. These tokens have a 'az' prefix, ie azUSDT, azUSDC, azETH, azWBTC. (azTokens are essentially profit bearing instruments that represent a pro-rata share of the underlying currency which is pooled together in order to facilitate Murabaha). Make sure to add the azToken address to your wallet.

  4. Users with azPool deposits will also accrue eAZKA rewards on top of the base vROI as long as they meet the dLP (Dynamic LP) eligibility requirement. (See dLP section in AZKA Token Design).

  5. Share Tokens accrue in value based on the amount of funds utilised to facilitate Murabaha. If the pool has facilitated Murabaha’s the LP should realise a profit once they burn their Share Tokens and withdraw from the Murabaha Pool (azPool). LP's can withdraw at anytime.

  6. It is important to note that although AZKA protocol's mechanism design and incentive structure is catered to ensure that there will always be idle funds available to facilitate withdrawals, there is always a possibility of liquidity risk (ie, all funds have been utilised in Murabaha and the LP may need to wait until debts are repaid to the pool). This is an unlikely scenario as the 'Murabaha Fee Rate' curve is designed to make Murabaha exponentially more expensive as more pool liquidity is utilised.

  7. All parameters relating to the users Liquidity Provisions can be viewed in the portfolio section.

PreviousAZKA RoadMapNextPool Metrics

Last updated 1 year ago