In Beliquid, the liquidity in the orderbook is provided by the assets deposited by users in the vaults. Currently, Beliquid team runs market making algorithms on top of vaults to earn APR for the users. However, in the future, creators of vaults will be able to run their own market making algorithms for providing orderbook liquidity and earning APR.
Liquid Vaults are autonomous, transparent, on-chain market makers that power liquidity across the orderbook 24/7. These vaults are the backbone of BeLiquid’s trading infrastructure, where users can deposit their assets to earn yield while providing liquidity to the platform.
Your assets become part of a two-sided pool (similar to Uniswap or Aerodrome), such as the BERA/HONEY pool
Sophisticated market making algorithms use these pooled funds to provide liquidity on the orderbook
All trading activity generates yield that flows directly back to the LPs
Berachain’s proof of liquidity mechanism further enhances LP rewards
The system ensures optimal liquidity deployment around current market prices
Unlike traditional exchanges where profits are extracted by middlemen, BeLiquid democratizes trading profits by returning all value generated by the protocol back to the liquidity providers - the true builders of the platform.