Yield Accounts (LP)

Users can earn yield on their native crypto assets by providing dual crypto assets or single crypto assets into El Dorado's Yield Accounts. When you provide liquidity, you are earning a proportional share of the swaps fees and systems rewards that are generated in the respective liquidity pools.

El Dorado believes that changing the complex language of crypto into simpler linguistics will help onboard more users. We have made the below changes to some commonly known terms within Defi for our platform. Providing Liquidity (LP) -> Yield Accounts Symmetric Liquidity -> Depositing Dual Assets into Liquidity Pools

Asymmetric Liquidity -> Depositing Single Assets into Liquidity Pools

Example: You provide dual assets such as BTC/CACAO liquidity or only BTC/CACAO into the BTC/CACAO liquidity pool. You are then earning the proportional yield of the BTC pool which can be viewed on the stats page.

Note: Liquidity providers commit capital to pools which have exposure to underlying assets, thus liquidity providers gain exposure to those assets, which have free-floating market prices.

While they are paid block rewards and liquidity fees, these are dynamic and may not be enough to cover "Impermanent Losses", which occur when price changes happen.

Liquidity providers should not consider they are entitled to receive a specific quantity of their assets back when they deposit, rather that they will receive their fair share of the pool's earnings and final asset balances.