Unfair LP Treatment

LPs: Unfairly Treated as Passive, Second-Class Citizens

Liquidity providers (LPs) have long been treated as passive, second-class citizens in the DeFi ecosystem. Harmony is missing, and LPs often face chaos when supplying liquidity or taking actions, as market dynamics change constantly. LPs are left exposed to unpredictable risks without the tools to manage or capitalize on them effectively.

LPs should have the same rights as traders — able to actively manage and trade their positions. Since LPs essentially take the opposite side of trades, they must be empowered to hedge or even boldly trade using their LP positions.

Given the significant risks LPs face, they should be granted the power to govern where and how their capital is deployed. After all, LPs have been the financial backbone of DeFi, supporting innovation from its earliest stages. It’s time they are treated as the critical players they truly are.