OLP
OLP is the platform's liquidity provider token.
Last updated
OLP is the platform's liquidity provider token.
Last updated
OLP token represents adding liquidity to serve traders' leveraged trading. You can mint OLP by any asset in the pool and sell OLP to redeem any asset.
Liquidity pool includes margin coins, which can be: BTC, USDT, ETH, ONUS, VNDC, USDO.
Users can choose one of the above margin coins to add liquidity and receive OLP according to the current value of the Pool. However, there will be a corresponding Fee upon different coins depending on the value of the Pool.
Minted OLP will automatically be staked into OLP Staking Pool. After that, users can choose to sell all OLP in OLP Staking Pool to redeem one of the coins or hold for as long as they can to receive esOMT and share 70% of the system fees along with other OLP stakers.
Liquidity pools profit from futures trades' losses, and pay traders winning profits. Owning OLP tokens represents the right to share 70% of the exchange's revenue.
Let's say an user uses 5 ETH (1 ETH = $1,300) to provide liquidity and gets OLP tokens when the total pool value is $100,000.
When traders trade with the pool, depending on the profit/loss status, the coin used for margin and the trading pair, the value of each asset, the proportion of assets in the pool, and the total pool value will change.
| Pool Instance | Before minting OLP | When OLP is minted | After redeeming OLP |
|---|---|---|---|
List of assets' value | BTC = $40,000 | BTC = $40,000 | BTC = $60,200 |
ETH = $20,000 | ETH = $26,500 | ETH = $30,420 | |
ONUS = $12,910 | ONUS = $12,910 | ONUS = $26,560 | |
USDT = $11,590 | USDT = $11,590 | USDT = $29,980 | |
VNDC = $4,000 | VNDC = $4,000 | VNDC = $31,010 | |
USDO = $5,000 | USDO = $5,000 | USDO = $29,850 | |
Total pool value | $100,000 | $106,500 | $208,020 |
At that time, Liquidity Provider can redeem (sell) OLP to get back any coin in the exchange's asset list, for example ETH. At that time, the total pool value was $208,020 and 1 ETH = $1,300.
The total redeem value and the amount of ETH received is calculated as follows:
Redeemed Value = ($6,500 / $100,000) * $208,020 = $13,533
ETH Received = $13,533 / $1,300 = 10.41 (ETH)
Thus, users will receive a total of 10.41 ETH ($13,533) (capital & profit) after the period of capital contribution to serve traders.
Note:
The distributed fees are based on the number of token after deducting referral rewards and the network costs of keepers, keeper costs are usually around 1% of the total fees.
OLP is specific to the network you mint it on, it is not directly transferrable between networks and the price / rewards to the tokens will differ between networks.
Staked OLP token address: Contract address coming soon.
Historical PnL, OLP price analytics can be found here: link coming soon.
