Skip to main content

MIP-2 — Metaliquidity

info

In progress. On-chain vault landing; market-making strategy runs off-chain.

Metaliquidity is MetaFlux's protocol/community liquidity-provider vault — the native-liquidity backbone, analogous to the automated liquidity-provision proposal on established on-chain venues. Liquidity providers deposit USDC into the vault and share in the PnL of a market-making strategy that quotes on the order books. It provides the resting liquidity that takers trade against, so markets are not dependent solely on external market makers from day one.

What's on-chain vs off-chain​

A deliberate split keeps the consensus surface small:

  • On-chain — the vault only. Pooled LP capital, share accounting, NAV (marked-to-market against the oracle), a withdrawal lock, and a whitelist of recognised provider addresses.
  • Off-chain — the strategy. The market-making logic (quoting, inventory management) runs as an ordinary MTF-native client: a whitelisted strategy key signs orders on behalf of the vault account and submits them through the normal signed-order path. No strategy logic is baked into consensus.

For liquidity providers​

  • Deposit USDC, permissionlessly, and receive vault shares priced at the current NAV (cash + mark-to-market of the vault's open positions).
  • Withdraw by redeeming shares for their NAV share, subject to a 7-day withdrawal lock from your most recent deposit.
  • Your shares appreciate or depreciate with the strategy's realised and unrealised PnL — there is market risk; this is not a yield guarantee.

Provider whitelist​

The recognised Metaliquidity provider addresses are a list, seeded at genesis and mutable by governance. Only a whitelisted address may operate a Metaliquidity vault and be authorised to trade its pooled capital; deposits remain open to anyone.

Status & history​

Metaliquidity supplies the native order-book liquidity that a protocol-owned provider is meant to bootstrap. The equivalent protocol-owned vault on established on-chain venues was originally deferred post-launch (to V2) in favour of external market makers; it has been pulled forward because native resting liquidity is needed earlier than that plan assumed. The on-chain vault is landing now; the off-chain strategy and provider whitelist seed in alongside it.