RBTC Flyover - LP Onboarding
LPs can be individuals, institutions, exchanges, or aggregators. See the glossary for term definitions.
The Flyover protocol is trust-minimized, this means user funds go to the PowPeg federation (peg-in) or the Liquidity Bridge Contract (peg-out), never to the Liquidity Provider. LPs supply liquidity and are repaid by the protocol; they do not hold custody of user funds. This design matters for institutional LPs and their users.
This section outlines the key features and operations that Liquidity Providers (LPs) need to run their Liquidity Provider Servers (LPS) effectively. The information provided encompasses both technical and operational aspects, making it a valuable resource for both LPs and those responsible for deploying the LPS environment.
Requirements
- See minimum security requirements
- Configure environments
- LPS Wallet
- LPS environment
- Liquidity
- The minimum required is the collateral amount (regardless of the amount of liquidity), which currently is 0.06 rBTC that needs to be paid during transaction registration. See how to get rBTC.
Main Dependencies
The liquidity provider server has the following dependencies:
- Rootstock Node
- Bitcoin Node
- MongoDB instance
The Liquidity Provider Server (LPS) handles sensitive financial operations and relies on non-public functionalities of the Rootstock and Bitcoin networks. To mitigate the risk of fund loss, it is imperative to use dedicated, private nodes with stringent security measures. Public or inadequately secured nodes are strongly discouraged and could result in funds loss.
Benefits of becoming an LP
There are several benefits for LPs:
- Accelerated Transaction Speeds: Flyover drastically reduces transaction times by minimizing required block confirmations, increasing efficiency and providing an enhanced user experience.
- Expanded User Base: By joining the Flyover network, LPs gain access to a broader market of Bitcoin users seeking to interact with the Rootstock ecosystem.
- Enhanced Revenue Opportunities: Flyover enables LPs to generate increased revenue through transaction fees by providing liquidity for the growing number of users.
- Versatility: LPs have the flexibility to integrate Flyover into their existing platforms or operate solely as liquidity providers, adapting to their specific business needs.
- Contribution to Ecosystem Growth: LPs play a pivotal role in expanding the Rootstock ecosystem by ensuring sufficient liquidity for seamless Bitcoin-Rootstock transfers.
Fees
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Network Fee: A fee charged by the Rootstock network to cover transaction processing costs (gas). This fee is not included in the quote but is paid directly by users when making transactions on the Rootstock network.
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Gas Fee: This fee covers the gas costs for all transactions performed by the Liquidity Provider during the pegin or pegout process.
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Call Fee: A fee paid to the Liquidity Provider who facilitates the transaction. This fee is configurable and can vary based on the LP's chosen settings.
Security
See the minimum security requirements.