Participants

Stakers

Stakers are individuals who delegate their assets to validators to help validate transactions on PoS blockchains and receive staking rewards in return.

Legato allows stakers not only to earn passive income but also to speculate on token value through shorting and longing positions. This opens up new strategies who want to actively manage their portfolios and potentially earn additional profits.

Traders

Traders, unlike stakers who focus more on earning rewards from the core network. They're speculating on the price movements of tokens within the system and seeking benefits from holding.

Below are the key differences:

Role	Focus	Income Source
Staker	Network Security & Validation	Staking rewards
Trader	Market Speculation & Price Movements	Profit from buying and selling tokens at optimal times

Without Legato, there is a clear line between stakers and traders. With us, it enables stakers to become traders and vice versa.

Liquidity Providers

Each vault generates liquid vault tokens (PT) that can be traded with other tokens. Liquidity providers play a major role by depositing equal values of vault tokens and settlement tokens (e.g., PT and USDC) into a liquidity pool, allowing them to be traded at rates calculated automatically.

Over time, we may incentivize liquidity providers with rewards to help ensure continuous liquidity provision, making the system work better and trading smoother for everyone.

And again, at Legato, there is no clear line between the roles. Each participant can seamlessly transition between roles as they see fit.