🏦 Rho Liquidity Vault

Rho’s Liquidity Vault is a liquidity strategy designed for users seeking passive, high-yield returns in on-chain rate markets.

By depositing USDT into the Vault, you become a liquidity provider for Rho Protocol’s vAMMs. In return, you receive a portion of the trading fees generated whenever traders open or close positions on the platform. Additionally, the Vault plays a role during liquidations, earning extra fees when these events occur.

Key Benefits:

• Passive Income: The Vault continuously scans the rate markets to allocate capital to the highest-yield opportunities.

• Minimum directional exposure: As our vault operates exclusively within the rates market, it does not carry direct exposure to crypto asset prices (such as BTC/USDT or ETH/USDT). The primary exposure is to interest rate fluctuations, and hedging mechanisms are in place to effectively manage this risk.

• Institutional-Grade: Tailored for hedge funds, DAOs, protocols, and crypto-native traders seeking consistent returns.

• Zero-fees approach: We don’t charge any fees on Rho Vault. You can deposit in Rho Vaults and enjoy the full APY with zero fees.

How It Works (Step by Step):

1. Deposit: Allocate capital (USDT) into the Vault via Rho’s platform

2. Deployment: The Vault distributes liquidity across Rho’s rate markets targeting the best risk-adjusted returns.

3. Earnings: As trading activity occurs on the platform, the Vault collects a share of the fees.

4. Liquidations: The Vault triggers liquidations on under-collateralized accounts and earn fees, therefore, boosting returns.

5. Withdrawal: You can withdraw your share from the Vault at any time—there’s no lock-up period. Rho maintains a liquid reserve to enable near-instant withdrawals. In rare cases, more complex withdrawals that could affect the protocol’s operations may take up to two days. More information for Vaults depositors HERE.

Learn more details about Vaults here.