> For the complete documentation index, see [llms.txt](https://docs.antarctic.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.antarctic.exchange/antarctic-overview/liquidity-provider-protection.md).

# Liquidity Provider Protection

Liquidity providers are fundamental to the **stability**, **depth**, and **execution quality** of AX. Our dual-vault architecture—**AMLP** for market-making and **AHLP** for hedging—forms the foundation of a system designed to protect LP capital while supporting efficient execution across the exchange.

Looking ahead, AX plans to introduce enhanced incentive mechanisms and updated **APY structures** in **future**. We are also developing an additional liquidity pool dedicated to supporting the broader AX ecosystem. By depositing assets into these pools, LPs can benefit from **controlled capital deployment**, earn **competitive yield**, and unlock additional ecosystem rewards made available by AX.

<figure><img src="https://701049293-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fy2muaDx0nPrdIvsfSBKH%2Fuploads%2FNYypLLsgCURVVEX6fJuw%2F02_Liquidity%20solution.png?alt=media&amp;token=3bb84788-602b-459e-8ebb-6a17c1cfd305" alt=""><figcaption></figcaption></figure>