> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hyro.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Why LPs Participate

> Deposit USDC into verified-manager vaults and earn carry on real trading performance.

As a liquidity provider, you deposit USDC to underwrite verified trading managers and earn carry on the profits they generate. This is a new asset class: direct on-chain participation in the performance of verified, multi-venue trading managers.

<Warning>
  Hyro vaults are a **high-risk allocation**. Returns are tied to live trader PnL — not a fixed yield, not a synthetic basis trade, not a lending APR. Expect drawdowns. See [Risk Disclosure](/lps/risks).
</Warning>

## What you need

<Steps>
  <Step title="A Phantom wallet">
    For depositing, receiving shares, and withdrawing.
  </Step>

  <Step title="USDC on Solana">
    All deposits and settlement are in USDC.
  </Step>
</Steps>

## How it works in one paragraph

You deposit USDC into a vault and receive **vault shares** minted at the current NAV. Your capital is routed to the manager's Bybit sub-account; the manager trades; you earn carry on profits. When you withdraw, shares are burned and USDC returns at the prevailing NAV — with a high-water-mark-protected performance fee crystallizing on realized gains.

## Why LPs participate

<CardGroup cols={2}>
  <Card title="Performance-based returns" icon="chart-line">
    Tied to actual live PnL of verified managers, uncorrelated with passive crypto holding.
  </Card>

  <Card title="Verified managers" icon="user-check">
    Every manager has an on-chain track record, KYC/KYB, a skin-in-the-game stake, and smart-contract DD limits.
  </Card>

  <Card title="Transparent settlement" icon="link">
    Every deposit, payout, and share mint/burn settles on Solana with a TXID, queryable independently.
  </Card>

  <Card title="Proof of reserves" icon="shield-check">
    The payout vault balance is on-chain at all times.
  </Card>
</CardGroup>

## Hyro vs. other crypto yield

| Alternative              | What it offers           | What Hyro adds                                                                            |
| ------------------------ | ------------------------ | ----------------------------------------------------------------------------------------- |
| Hold BTC / ETH           | Beta exposure            | Active-strategy alpha, uncorrelated with spot direction                                   |
| SOL / ETH staking        | \~5–8% APR               | Performance-based, manager-driven alpha                                                   |
| Ethena (sUSDe)           | Funding-rate basis trade | Multi-venue, manager-driven (not mechanical)                                              |
| Kamino Vaults            | Lending / LP yield       | Active trading on real order books                                                        |
| Hyperliquid HLP          | Single-venue MM vault    | Multi-venue, verified-manager curation                                                    |
| Centralized copy-trading | Retail copy-trading      | On-chain settlement, programmatic DD limits, no custodial counterparty risk on LP capital |

<Card title="Explore LP products" icon="layout-grid" href="/lps/vault-types" horizontal>
  Individual vaults, the Hyro Pool, insurance fund, and \$HYRO staking.
</Card>