What Perpetual Liquidity Pools, a Temporal innovation, can do. TL;DR -
Advantages for LPs:
- Higher fees
- Dramatically simpler UX 😌
Advantages for Traders:
- Deeper pools (= ⬇️ slippage)
- Duration flexibility (no expensive otc deals reqd.)
e.g. of perpetual liquidity pools (PLP) in yield trading: a PLP serves as a counterparty to trades in PT / YT of a given asset, with any duration.
So 1 sUSDe pool serves PT / YT trades of all durations (57d, 90d,...)
This way, an LP doesn’t spread their liquidity across a multiple pools of the same asset, risking lower fees & the pain of rolling over.
The trader gets a deeper pool to trade against & duration flexibility.