Rebalancing

Depending on whether a transaction increases or decreases the asset balance, the costs for minting, burning, or performing swaps will fluctuate. For instance, if the index has a high proportion of BTC and a low percentage of USDT, activities that further raise the index's BTC percentage will be charged a high fee, while those that increase its USDT percentage would pay a low fee.

Based on the open positions of traders, token weights are modified to assist OLP holders in hedging their positions. For instance, if many traders are shorting BTC, BTC would have a higher token weight; likewise, if many traders are longing BTC, stable coin would receive a greater token weight.

If token values rise, the price of OLP will rise as well, even if many traders hold long positions on the platform. The portion reserved for long positions can be considered stable in terms of its value since earnings from that portion will be used to pay traders if prices rise, and losses from traders will keep the value of the reserve portion stable if prices fall.

The token weights are displayed on the Dashboard.