When providing liquidity to an options market, LPs will receive LP Shares that gives them a proportional entitlement to all trading fees earned AFTER they have provided liquidity.
Your wallet address should appear in the top right corner:
The Metamask box indicates the total cost including estimated gas fees is 0.040021. This INCLUDES the amount that will be refunded to you per the information box above.
From the above, you can check the following details of your transaction:
- The refund is the amount returned to you per step 6.
- The LP shares you purchased and the options market, should match the details in step 5.
- The total cost before refund should match the amount in step 6.
- The final gas fee should be lower than the Metamask estimate in step 6.
Example of hedging in ETH calls markets: Selling calls with strike price of 480, at a total cost (eg 0.007228)that is equal to the cost or your LP shares.
Example of hedging in ETH puts markets: Selling puts with strike price of $10,000, at a total cost (eg 100.2 USDC) assuming you have bought 100.2 USDC worth of LP shares in the puts market. at is equal to the cost or your LP shares.
Your liquidity will help future traders place larger trades, and this means you can benefit more trading fees. For the markets that have settled, 1 USDC of liquidity have generated approximately 8.75 USDC worth of trades, and this has resulted in LPs earning around 6% in trading fees in 1 month.
Your chances of getting similar returns will be increased by purchasing a hedging instrument at Charm (in step 10), and only deposit in small amounts (in step 5).