RBTC Flyover - LP Onboarding
A Liquidity Provider (LP) contributes funds in Rootstock (RBTC) and Bitcoin (BTC) to a liquidity pool. In exchange for providing this liquidity and facilitating trades between the two assets, LPs earn rewards (fees) generated from trading activity.
LPs can be individuals, institutions, exchanges, or aggregators. See glossary section for explanation of terms.
This section outlines the key features and functionalities that Liquidity Providers (LPs) should be familiar with to effectively operate their Liquidity Provider Servers (LPS). The information provided encompasses both technical and operational aspects, making it a valuable resource for both LPs and those responsible for deploying the LPS environment.
Requirements​
- See minimum security requirements
- Configure environments
- LPS Wallet
- LPS environment
- Liquidity
- The minimum required is the collateral amount (regardless of the amount of liquidity), which currently is 0.06 RBTC that needs to be paid during transaction registration. See how to get RBTC.
Main Dependencies​
The liquidity provider server has the following dependencies:
- Rootstock Node
- Bitcoin Node
- MongoDB instance
The Liquidity Provider Server (LPS) handles sensitive financial operations and relies on non-public functionalities of the Rootstock and Bitcoin networks. To mitigate the risk of fund loss, it is imperative to use dedicated, private nodes with stringent security measures. Public or inadequately secured nodes are strongly discouraged and could result in funds loss.
Benefits of becoming an LP​
There are several benefits for LPs:
- Accelerated Transaction Speeds: Flyover drastically reduces transaction times by minimizing required block confirmations, increasing efficiency and providing an enhanced user experience.
- Expanded User Base: By joining the Flyover network, LPs gain access to a broader market of Bitcoin users seeking to interact with the Rootstock ecosystem.
- Enhanced Revenue Opportunities: Flyover enables LPs to generate increased revenue through transaction fees by providing liquidity for the growing number of users.
- Versatility: LPs have the flexibility to integrate Flyover into their existing platforms or operate solely as liquidity providers, adapting to their specific business needs.
- Contribution to Ecosystem Growth: LPs play a pivotal role in expanding the Rootstock ecosystem by ensuring sufficient liquidity for seamless Bitcoin-Rootstock transfers.
Fees​
When using the Flyover protocol, two fees apply:
- Network Fee: A fee charged by the Rootstock network to cover transaction processing costs (gas). See the Gas section for how the gas fee is calculated.
- Liquidity Provider (LP) Fee: A fee paid to the Liquidity Provider who facilitates the transaction. This fee is configurable and can vary based on the LP's chosen settings.
Security​
See the minimum security requirements.