Last updated
Last updated
1PLP represents liquidity infused for leveraged trading. Users have the ability to generate 1PLP by contributing any asset to the pool and can later exchange 1PLP for their preferred asset.
The liquidity pool is an amalgamation of margin coins, including BTC, USDT, and ETH. Users can bolster this pool with various margin coins, and in return, they receive 1PLP tokens, the quantity of which depends on the prevailing pool value. The fees associated with this process vary based on the coin and the pool's value.
Minted 1PLP tokens find their automatic home in the 1PLP staking pool. Users have the flexibility to either redeem 1PLP for a specific coin or retain them to earn es1PERP (Escrowed 1PERP) and share in 70% of the system fees alongside fellow 1PLP stakers.
Liquidity pools draw profits from the losses incurred in futures trades, and these funds are allocated to cover traders' profits. Owning 1PLP tokens entitles you to a portion of the exchange's revenue, ensuring your stake in its success.
Imagine a user commits 5 BNB (valued at $200 per BNB) to contribute liquidity when the total pool value stands at $100,000. As traders engage with the pool, the asset proportions within the pool fluctuate based on their profits or losses.
Suppose the total pool value subsequently rises to $150,000, with 1 BNB now valued at $250. If the user opts to redeem their assets in the form of BNB, the calculation unfolds as follows:
Redeemed Value = ($1,250 / $100,000) * $150,000 = $1,875 BNB Received = $1,875 / $250 = 7.5 BNB
Thus, users will receive a total of 7.5 BNB (equivalent to $1,875), comprising both their initial capital and profits, after their period of capital contribution in support of traders.
Fee distribution is based on the 1PLP token count (after accounting for referral rewards and keeper costs).
1PLP tokens are network-specific and not transferable between networks.
Staked 1PLP token address: (contract address coming soon).
Historical PnL and 1PLP price analytics: (link coming soon).
Transaction costs associated with minting, burning, and swaps exhibit a dynamic nature contingent upon whether the transaction contributes to an increase or decrease in the asset balance. To elucidate further, consider the following scenario: If the index holds a greater proportion of BTC and a lesser amount of USDT, activities aimed at bolstering the BTC percentage incur higher fees, whereas those intended to amplify the USDT percentage entail lower fees.
Token weights within the ecosystem undergo adjustments that hinge upon the open positions of traders. This strategic adaptation serves to assist 1PLP holders in mitigating risk associated with their positions. For instance, if a multitude of traders opt for short positions in BTC, the token weight assigned to BTC increases. Conversely, when the trader community leans towards long positions in BTC, stable coins witness a commensurate enhancement in their token weight.
Notably, in scenarios where token values experience an upsurge, the 1PLP price registers a corresponding increase, irrespective of the prevalence of traders' long positions. This mechanism ensures that the portion earmarked for long positions maintains its intrinsic value through accrued earnings, offering a protective shield in the event of token price depreciation.
For a comprehensive view of token weights and their real-time status, you can conveniently access this information on the Info & Analytics Dashboard: (link coming soon).
