LPs as First-Class Citizens: Mini DAOs

At World Market, LPs gain full control over the risk and economics of their markets, transforming them into first-class citizens of DeFi. This autonomy allows LPs to make decisions that align with their interests and contribute to the growth and evolution of their markets.

Protocols seeking to list themselves in existing markets will need to incentivize LPs to allocate capital to their market — usually a portion of open-interest capacity — through bribes or rewards.

LPs have the power to run their own governance, create customized incentives, and manage risks within their markets, maximizing their ownership and influence. This puts them in a unique position to shape the DeFi landscape, capturing more mindshare and market share compared to other protocols.