Liquidity providers (LPs) are the backbone of Fira's fixed-rate markets. Without them, borrowers and lenders have no counterparty to trade with. As an LP, your job is simple: deposit capital, and let the protocol put it to work matching the two sides of the market.
Your role in one sentence
LPs supply USDC into Fira's fixed-rate AMM pools. This capital is what allows lenders to buy fixed-yield positions and borrowers to access fixed-rate credit.
Think of it like running a currency exchange booth at an airport. You hold inventory on both sides so travellers can always transact. Fira's AMM does the same — it holds BT (Bond Tokens) and FW (Fira Wrapped USDC) so that trades can happen at any time.
What happens when you deposit
You deposit USDC into the protocol. Fira wraps it into FW-USDC — an interest-bearing representation of your USDC.
You choose a market and a maturity (e.g., May 7, 2026). Fira deposits your FW-USDC into the corresponding AMM pool.
The pool automatically distributes your deposit into its current BT/FW composition. You receive:
An LP token — your proportional share of the pool, which accrues value over time.
CT tokens (Coupon Tokens) — you can hold these to earn rehypothecation yield, or sell them immediately.
LP vs. Lender — what's the difference?
These two roles are often confused. They are not the same.
Lender | LP | |
What you hold | BT (fixed-yield bond) | A mix of BT and FW in the pool |
Return type | Predictable, fixed at entry | Variable — depends on market activity |
Rate exposure | Direct | Dampened by the FW component |
Main risk | Rate spike = unrealized loss | Pool composition shifts, early exit slippage |
Lenders lock in a specific yield at a specific maturity. LPs earn from market activity (fees, interest, rehypothecation) — which means the return varies.
Fees you'll pay
Zero. Fira charges 0% on all LP operations — minting, swapping, redeeming, and rolling into the next maturity. What you earn is yours.
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