🗝️5.6.7 Key Takeaways

  • Not pooled investing: LPs are depositors in a DeFi‑style liquidity pool; they are not investors in a managed fund. Returns depend on trader performance and protocol fees.

  • Trustless protection: Drawdown limits, the Reserve Fund and Insurance NFTs provide LP principal protection.

  • Skill over collateral: Traders unlock funding through proven performance and on‑chain reputation instead of overcollateralising.

  • Pure DeFi alignment: By functioning as an autonomous smart‑contract protocol rather than a managed investment product, EOSI Finance avoids fund‑management classifications and associated regulatory burdens.

  • “Aave for Traders”: EOSI Finance extends the proven model of DeFi lending (deposit tokens for interest, receive receipt tokens and redeem with yield) to the domain of proprietary trading. LPs supply liquidity, traders unlock it with skill and multiple protection layers safeguard all participants.

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