Supplier perspective
On Hashstack, anyone can supply their crypto assets through two commitment types
- 1.Fixed commitment
- 2.Flexible commitment
Fixed commitment implies, crypto-asset supplied by a liquidity provider for a minimum pre-defined time period. These are two weeks, one month, three months.
By locking their liquidity for a minimum commitment period, a liquidity provider improves the protocol's ability to predict & utilise the crypto-asset effectively. In exchange, the liquidity providers with fixed commitmed based deposits are incentivised with higher supply apr.
Flexible commitment on the other-hand implies the liquidity provider can provide and withdraw their supply at will. This creates ambiquity to the system. Hence, to disincentivise, the suppliers with NONE minimum commitment period are paid less supply apr.
Last modified 1mo ago