> For the complete documentation index, see [llms.txt](https://docs.carbon.inc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.carbon.inc/how-carbon-works/carbon-solver-clp.md). # Carbon Solver (CLP) **Coming Soon** The Carbon Solver is the proprietary execution engine for Carbon's CFD track. The Carbon Liquidity Provider (CLP) is the community-accessible vault that funds it. Together, they bring CFD market making, one of the most consistent revenue streams in traditional finance, fully on-chain and accessible to anyone with USDC. *** ### What the Carbon Solver is The Carbon Solver is Carbon's native execution engine for real-world asset CFDs. It provides liquidity and hedges exposure for CFD trades through institutional TradFi brokers, settling on-chain through Carbon's ARFQ rails. The Carbon Solver is **CFD-only**. Crypto perpetual flow on Carbon is handled by separate, third-party market-maker solvers. The CLP vault funds the Carbon Solver, so LPs in the CLP earn specifically from CFD trading flow, not crypto perp flow. Instead of passively waiting for liquidity, the Carbon Solver actively sources it. It runs delta-neutral CFD strategies and executes user orders at the best available price across institutional TradFi brokers. *** ### How the solver vault works The Carbon Solver Vault (CLP) is the foundation of Carbon's CFD execution. It accepts USDC deposits from users and runs low-risk, delta-neutral CFD strategies that earn from: * **Spreads.** Capturing the bid-ask difference between CFD quotes and hedge execution at the broker. * **Flow.** Earning from consistent CFD trading volume on Carbon (stocks, FX, indices, commodities). As Carbon's CFD volume scales, Solver earnings scale with it. The more users trade real-world assets on Carbon, the more flow the Carbon Solver handles, and the more the vault earns. The system is non-extractive. The Carbon Solver does **not** counter-trade users. It is designed to remain neutral, providing CFD liquidity rather than taking directional positions.
*** ### Why open CFD market making to the community CFD market making is one of the most consistent revenue streams in traditional finance. Historically, those earnings have flowed to a small set of regulated firms operating behind opaque agreements with brokers. Most DeFi platforms either: 1. Strike deals with opaque market makers, or 2. Use capital-inefficient liquidity pools that often bleed value. Carbon's approach is different. By opening the Solver Vault to users, Carbon: * Distributes CFD-solver revenue to the community instead of external firms. * Aligns the growth of the protocol with those who help power its CFD markets. * Creates a transparent, auditable execution system backed by real capital. This removes the need for backroom deals and lets early contributors benefit directly from Carbon's CFD volume. *** ### What the Carbon Solver covers The Carbon Solver focuses exclusively on real-world asset CFDs. At launch, that is **205 markets**, including: * Stocks (e.g. AAPL, TSLA, NVDA) * Indices (e.g. S\&P 500, DAX) * Commodities (e.g. gold, oil) * Forex pairs Crypto perpetual pairs live on Carbon today (550+ pairs) are handled by separate market-maker solvers operating on the platform. LPs in the CLP do not earn from crypto perp flow. The CLP is the CFD vault. *** ### How LPs earn Users deposit USDC directly into the Solver Vault. Earnings are shared **proportionally** based on vault share. * **Auto-compounding.** Yield is automatically reinvested. No claim step. * **Simple onboarding.** Deposit and track performance via the webapp. * **Low-risk design.** The strategy is built to remain delta-neutral. It earns from CFD spread and flow, not market direction. Withdrawals will be available after a short lock-up period (to allow for rebalance cycles), and performance metrics will be visible on-chain. *** ### Risks Like any vault-based strategy, the Carbon Solver Vault is not risk-free. Risks include: * Adverse execution or slippage during CFD hedge cycles * Broker outages or latency issues * Mispricing from off-chain sources * Strategy underperformance in extreme volatility, including market gaps when underlying TradFi markets close and reopen The Carbon Solver does **not** take directional bets and is not exposed to impermanent loss. Its delta-neutral design and broker-side hedging give it a significantly lower risk profile than traditional AMMs or leverage-based strategies. As always, users should only deposit what they are comfortable with and track vault performance regularly. *** ### In summary Carbon opens CFD market making, one of the most consistent revenue streams in traditional finance, to anyone with USDC. Instead of letting centralized firms extract value, the Carbon Solver Vault lets the community earn directly from CFD trading on the platform. As Carbon launches more real-world asset markets and scales CFD volume, vault participants benefit alongside. Once live, the CLP will be the central liquidity source for Carbon's CFD markets, bringing real-world asset trading fully on-chain through institutional TradFi brokers. **Stay tuned.** *** Once live, it will be a central liquidity source for Carbon’s Everything Perp DEX vision - from crypto to TradFi, from on-chain to off-chain. **Stay tuned.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.carbon.inc/how-carbon-works/carbon-solver-clp.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.