Liquidity for V1

SLP is the liquidity provider token for V1. Liquidity providers earn fees from leverage trading, borrowing fees, and swaps.

SLP represents a diversified asset index designed for trading activities such as swaps and leveraged positions. It can be created (minted) or dissolved (burnt) with any asset featured in the index. The valuation for both creating and dissolving SLP is determined by the ratio of the index's total value, including the gains and losses from active trades, to the current supply of SLP.

Purchasing SLP

SLP tokens can be acquired via the Buy SLP page.

At the bottom of the Buy page, you'll find options to bridge funds for purchasing the tokens.

To execute the buy transaction, ETH / AVAX is also necessary.

SLP can be purchased using any of the SLP index tokens, which are listed on the Dashboard.

Fees will be more favorable for tokens that are less abundant in the pool. For the lowest fees, refer to the Save on Fees section.

Upon purchasing, your SLP tokens will automatically be staked, and you will begin to earn Escrowed SD and ETH / AVAX rewards. Your rewards can be viewed on the Earn page.

Selling SLP

SLP tokens can be sold via the Sell SLP page.

Token Pricing

For some index tokens, there may be a spread. Minting SLP will utilize the lower value of the index token, while redeeming SLP will use the higher value.

For stablecoin tokens, the spread will range from the Chainlink price of the stablecoin to 1 USD.

The price of SLP will also be influenced by the token spread within the pool.

Token Weights

The fees for minting SLP, burning SLP, or conducting swaps will depend on whether the action contributes to a more balanced distribution of assets within the pool. For instance, if the index is predominantly composed of ETH and has a minor proportion of USDC, actions that increase the index's ETH holdings will incur higher fees, whereas actions that decrease its ETH holdings will incur lower fees.