Most people look at perpetual trading from the trader's side.
You deposit collateral.
You choose Long or Short.
You manage the position.
But there's another side to every trade:
"𝑻𝒉𝒆 𝒍𝒊𝒒𝒖𝒊𝒅𝒊𝒕𝒚 𝒃𝒆𝒉𝒊𝒏𝒅 𝒊𝒕"
On
@Hertzflow_xyz , that liquidity is provided through HzLP pools.
And this is where the LP side gets interesting.
When you provide liquidity, you're not simply depositing money and collecting a fixed return.
You're providing liquidity that supports traders' positions.
That means the pool's performance is connected to what happens on the trading side.
Trader profit → potential pool loss
Trader loss → potential pool gain
If traders close positions in profit, those gains can reduce the pool's AUM.
If traders close positions at a loss, those losses can increase the pool's AUM.
But trader PnL isn't the only thing affecting the pool.
There’s another side to the pool's economics.
HzLP pools can also generate revenue from:
→ Trading fees
→ Borrow fees
→ Liquidation fees
That revenue contributes to the pool's economics alongside trader PnL.
There’s also an important structural detail.
@Hertzflow_xyz uses market-specific liquidity pools.
Liquidity isn't simply placed into one giant pool covering every market.
Each market has its own pool and corresponding exposure.
Deposits are also split 50/50 between long and short collateral reserves, helping structure the liquidity available to support the market.
Then there’s the LP token.
Its value is tied directly to the pool's performance:
LP token price = Pool AUM ÷ Total LP token supply
As the pool's AUM changes through trader PnL and protocol revenue, the value represented by each LP token can change too.
And this also affects withdrawals.
Providing liquidity isn't simply:
Deposit → wait → withdraw whenever you want.
@Hertzflow_xyz can restrict withdrawals based on factors such as the pool's PnL condition and available liquidity reserves.
And that makes sense when you consider what the liquidity is actually doing.
It needs to remain available to support traders.
So what does this mean for the LP?
This isn't a guaranteed savings-account-style return.
As an LP, you're exposed to the economics of being liquidity on the other side of leveraged trading.
The pool can benefit when traders lose.
The pool can be negatively affected when traders profit.
And protocol fees can contribute to the pool's revenue.
So the yield comes with market exposure.
You're not simply earning from trading activity.
You're also exposed to what happens when the traders using that liquidity win or lose.
And that's what makes the LP side of
@Hertzflow_xyz different from simply opening a perpetual position.
The trader takes the position.
The LP provides the liquidity that makes that position possible.
#HertzFlow