# Hybird LP Model

AX uses a hybrid liquidity model that combines on-chain guarantees with off-chain efficiency. Deposits and redemptions—covering stablecoins and the AMLP/AHLP vaults—are executed through smart contracts to preserve transparency and user protection, while off-chain components support performance and operational scalability where appropriate.

#### On-chain + Off-chain Design

AX’s liquidity system is built to keep the LP experience simple without sacrificing verifiability:

* **On-chain execution and auditability:** Core actions are enforced by smart contracts, and key interactions can be independently verified on-chain.
* **Off-chain efficiency:** Off-chain modules help manage complexity and improve throughput, enabling a smoother user experience while maintaining clear, rules-based behavior.

#### Liquidity Pool Stability & Protection

To reduce unnecessary churn and protect LPs during periods of volatility, AX applies a **Time Lock** on LP exits. This mechanism is designed to:

* discourage frequent in-and-out behavior that can destabilize pool performance,
* reduce negative externalities on long-term participants, and
* maintain fair, predictable liquidity conditions for the broader market.

Critical parameters related to liquidity operations are governed by transparent rules, with safeguards (including time-delayed changes where applicable) to ensure consistent and accountable system behavior.


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