Liquidity Provider Role

Also known as LPs, the Liquidity Provider role is usually fulfilled by professional market makers, but Chainflip also supports passive liquidity provisioning strategies. A good liquidity provider will have expertise in risk management and market making, and knowledge of how our AMM works.

If you want to market-make on Chainflip with Active Liquidity, register as an LP.

Prerequisites

Before registering, you need to:

1. Create a State-Chain account and generate keys
2. Fund the account with FLIP
3. Set up a Light-RPC node (recommended) to interact with the LP API

For complete setup instructions, see the LP-light-rpc-node page, which includes:

• Key generation steps
• Account funding via the Auctions Web App
• Docker-based Light-RPC node setup with LP profile

Note: This guide is for Active Liquidity providers. Passive LPs onboard via the front-end and do not need to register via CLI or RPC.

You can register using the CLI or via RPC:

Register using chainflip-cli

chainflip-cli lp register

Once registered, the account will have full access to LP-related actions through the LP API.

Register via Light-RPC (RPC alternative)

curl -H "Content-Type: application/json" \
  -d '{"id":1,"jsonrpc":"2.0","method":"lp_register_account","params":[0]}' \
  http://localhost:9944

Deregister using chainflip-cli

In order to be able to redeem all remaining FLIP, LP accounts must deregister. A pre-requisite for deregistering, LPs must not have any open orders and must withdraw all funds from their free balance. Once this is done, the LP API can be switched off and the account deregistered via the CLI:

chainflip-cli lp deregister