> For the complete documentation index, see [llms.txt](https://candora.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://candora.gitbook.io/whitepaper/candora-exchange/liquidity-provisioning.md). # Liquidity Provisioning ### Overview Liquidity Provisioning allows participants to contribute supported assets such as BNB, ETH, BTC, USDT, and other eligible assets to Candora's Liquidity Reserve and earn annualized rewards for supporting market liquidity, execution stability, and long-term ecosystem growth. Assets committed through Liquidity Provisioning become part of the Liquidity Reserve, a pooled capital layer designed to: * strengthen market depth across trading venues * improve liquidity availability * support orderly market operation during periods of elevated trading activity * provide temporary liquidity balancing and emergency liquidity capacity * maintain operational resilience during stressed market conditions Participants retain ownership of deposited assets throughout the program. Assets remain recorded within [Vault](/whitepaper/candora-grid/vault.md) and are governed by Candora's custody, accounting, settlement, and risk-management infrastructure. In return, participants receive rewards through a dual-reward model that combines asset-denominated rewards with CAN rewards. ### Liquidity reward schedule #### Founding liquidity program During the earliest stages of platform growth, early liquidity providers may receive enhanced reward rates. These incentives compensate for adoption risk, infrastructure expansion, and market-formation uncertainty during the earliest growth phases. | Entry stage | APY | Duration | | ----------------------------------------- | --: | ------------- | | Seed | 62% | 24 months | | Series A | 56% | 20 months | | Series B Emerald | 48% | 16 months | | Series B Gold | 42% | 16 months | | Series B Silver | 36% | 16 months | | Series B Bronze | 30% | 16 months | | Presale | 24% | 12 months | | Public Launch | 12% | Standard rate | Enhanced rates apply only during the applicable cohort period. They are temporary and phase out over time. ### Dual-reward distribution model Liquidity Provisioning uses a dual-reward system to balance direct asset yield with ecosystem participation. For all reward tiers: * 50% of rewards are paid in the deposited asset * 50% of rewards are paid in CAN Examples:
Participation typeAPYDeposited Asset rewardCAN reward
Public Launch participant12%6%6%
Seed participant60%30%30%
This structure allows participants to earn direct asset yield while also participating in ecosystem growth through CAN ownership. ### How Liquidity Provisioning Works Participants deposit supported assets into Candora's Liquidity Reserve. The reserve supports: * market depth * execution stability * temporary liquidity balancing * emergency liquidity capacity * operational resilience Rewards accrue continuously and are distributed according to protocol-defined schedules. Liquidity Provisioning supports liquidity infrastructure for [Candora Exchange](/whitepaper/candora-exchange.md). It does not change order priority, queue placement, matching treatment, or participant access to the market. ### Minimum participation requirement To maintain meaningful liquidity participation and reduce micro-position abuse, initial participation requires a minimum contribution value of **$5,000 USD equivalent** in supported assets. Only positions meeting the minimum threshold are eligible for Liquidity Provisioning rewards. Minimum contribution requirements may be adjusted over time based on market conditions, liquidity demand, and ecosystem growth. ### Reward funding Liquidity Provisioning rewards are funded through a combination of: * platform trading fees * liquidity utilization fees * protocol revenue allocation * treasury incentive programs * CAN reward emissions during designated growth phases Asset-denominated rewards may be funded through platform revenue, liquidity operations, treasury allocations, and other protocol-defined economic mechanisms. CAN rewards are distributed according to the platform's emission and incentive schedules. Over time, the objective is to increase the share of rewards supported by protocol-generated economic activity and reduce reliance on growth-phase incentives. ### Standard liquidity framework Following the Founding Liquidity Program, all participants transition to a unified long-term framework. Under the standard framework: * standard APY is `12%` * `6%` is paid in the deposited asset * `6%` is paid in CAN * no cohort-based advantages remain This framework promotes fairness, simplicity, and long-term sustainability. ### Sustainability model Liquidity Provisioning is designed to balance attractive participant incentives with long-term platform sustainability. Reward allocation is managed through controlled distribution schedules designed to support: * liquidity growth * stable participation * capital efficiency * long-term ecosystem development The objective is to create a durable liquidity foundation without relying on permanent preferential reward structures. ### Anti-abuse protections To preserve reward integrity, Liquidity Provisioning includes: * sybil-resistance controls * minimum participation thresholds * liquidity-manipulation detection * reward eligibility monitoring * enforcement for abusive behavior Participants who attempt to manipulate reward eligibility may have rewards reduced, suspended, or revoked under platform policy. ### Risk considerations Participation in Liquidity Provisioning involves economic risk. The value of deposited assets may fluctuate, market conditions may change, and future reward rates are not guaranteed. Participants remain responsible for evaluating their own risk tolerance and understanding the program structure. ### System objective Liquidity Provisioning creates a durable liquidity foundation for [Candora Exchange](/whitepaper/candora-exchange.md). It is designed to: * support market depth and execution quality * strengthen platform resilience * encourage long-term ecosystem growth * align participant incentives with platform development * transform passive capital into active liquidity infrastructure ### Summary Liquidity Provisioning enables participants to contribute supported assets to the Liquidity Reserve and earn dual-reward APY. Rewards are split between the deposited asset and CAN. The program combines early-stage incentives, sustainable long-term rewards, anti-abuse protections, and ongoing participant alignment to strengthen liquidity, execution stability, and ecosystem growth.