The afLP vault is a community-owned market making vault. It earns fees from trading activity and liquidations on Aftermath's perpetual exchange while sharing PnL with depositors.
How It Works
The vault provides passive liquidity to the orderbook. Depositors receive afLP tokens representing their share of the vault's assets. Returns come from trading fees collected when the vault's orders are filled, plus any trading PnL from its market making activity.
Unlike private market making arrangements, afLP is permissionless. Anyone can deposit and participate in the vault's performance without special access or negotiated terms.
Deposits and Withdrawals
Deposits currently have a 2-week lock-up period. You can then request to withdraw after lockup period. This prevents depositors from front-running anticipated losses or gaming short-term volatility.
After 1 day of your withdraw request sitting idle, you can forcefully withdraw liquidity from afLP. This ensures you that you will always have the ability to withdraw your funds from afLP.
Risk
The vault's value can decrease if its market making positions incur losses. Depositors are exposed to the vault's trading PnL both gains and losses. This is not a risk-free yield product.
