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Greedy Liquidity

Liquidity Providers Are Unprofitable

Recent studies have shown that half of liquidity providers are losing when they provide liquidity. In traditional crypto liquidity programs these two sides are:
  1. 1.
    LPs who provide the liquidity
  2. 2.
    Arbitrage traders who take the liquidity and sell it somewhere else where the price is higher
When arbitrage traders earn tokens, LP's lose tokens. The reason that arbitrage traders are taking the majority of profits in DeFi is because traditional liquidity programs are hard to manage and costly for liquidity providers as well as the projects that rely on them. This is why we created Vaults and, in doing so, have provided the world’s first “Greedy Liquidity” protocol.

We call it "Greedy Liquidity" because Vaults know what asset the LPs want and they work to acquire more of it.

Through single-token deposits, slippage adjustments, and concentrated liquidity, ICHI's Vaults provide a managed strategy designed to let LPs earn more of the token they provided.
Vaults are programmed with Greedy Liquidity built in. This is done through two ways:
  1. 1.
    Slippage adjustment that decreases the risk of over-selling (it is more expensive to sell tokens and easier to buy them).
  2. 2.
    Liquidity concentration accumulates the deposit asset (get more of the token you deposited in the pool).