Liquidity Pools

DLP and SLP-XXX are the platform's liquidity provider tokens.

Liquidity Pools Type

There are two kinds of liquidity pools. One is the Mixed Pool and the other is the Isolated Pool.

The Mixed Pool only accepts a number of stablecoins(BUSD, USDC, USDT, DAI, FRAX) as eligible liquidity and mints LP tokens named DLP, while one Isolated Pool only accepts any one single crypto asset such as XXX and mints LP tokens named SLP-XXX(e.g. if the liquidity is ETH, so the LP token should be named SLP-ETH). So there are only one Mixed Pool and many Isolated Pools on the DIPX platform, in that way, any crypto asset can be injected into the liquidity pool accordingly.

Fee of Liquidity Deposit and Withdraw

All deposited or withdrawn assets to inject liquidity into or remove liquidity from Isolated Pools are charged free, but 0.04% of the total amount will be charged by DIPX while injecting liquidity into or removing liquidity from the Mixed Pool.

Price of DLP/SLP-XXX for Buying and Selling

The price of buying LP tokens including DLP and SLP-XXX is determined by several factors as follows: Market Value of Pools, Platform Overall Fee, and Platform Overall ΡnL.

Market Value of Pools(MVP): Market value of the whole Mixed Pool at the spot price.

Platform Overall Fee(POF): The total trading fee generated by the entire platform.

Platform Overall ΡnL（PoP）: The PnL of all open positions (long and short) across the platform.

Market Price of DLP(Unit:USD)= MVP/(Totla supply of LP token-70%*POF+/-POP)

Market Price of SLP-XXX(Unit:XXX)= Totla amount XXX in the pool/(Totla supply of LP token-70%*POF+/-POP)

** POF and POP will be counted in the unit of DLP/DLP XXX.

Adding liquidity and removing liquidity are strictly followed by the market price of the DLP/SLP-XXX, in other words, it means buying or selling DLP/SLP-XXX by the Liquidity Ρoviders.

Benefits to be a Liquidity Provider

According to the formula of the Market Price of DLP/SLP-XXX above, we can see that Liquidity Providers can earn 70% of the total trading fee and real yield from market-making and leverage trading by holding DLP tokens.