Liquidity Provider

There is one liquidity provider token name OLP currently and two liquidity provider token named BP and CP in the future.

OLP

OLP is a liquidity provider token for providers earn fees in ETH from leverage trading and swaps and other rewards,see more.

OLP address(ODX zkEVM Chain):xxxxxxxxxxxxxx

Own OLP

Before own OLP, you need have TestToken, Get TestToken.

Enter the "Buy Page", Click "Buy OLP" button on the "OLP Box".

Any of the OLP index tokens can be used to buy OLP, a list of the index tokens can be found on the Dashboard.

Fees will be lower for tokens that the pool has less of, check the Save on Fees section to get the lowest fees.

After buying your OLP tokens will automatically be staked and you will start earning ETH rewards, you can check your rewards on the Earn page.

Sell OLP

OLP tokens can be sold using the Sell OLP page.

OLP Price

There may be a spread for some index tokens, minting OLP will be based on the lower value of the index token and redeeming OLP will be based on the higher value of the index token.

For stablecoin tokens, the spread will be from the SupraOracles price of the stablecoin to 1 USD.

The price of OLP will depend on the spread of the tokens in the pool as well.

Token Weights

The fees to mint OLP, burn OLP or to perform swaps will vary based on whether the action improves the balance of assets or reduces it. For example, if the index has a large percentage of ETH and a small percentage of USDC, actions which further increase the amount of ETH the index has will have a high fee while actions which reduces the amount of ETH the index has will have a low fee.

The token weights can be seen on the Dashboard.

Token weights are adjusted to help hedge OLP holders based on the open positions of traders. For example, if a lot of traders are long ETH, then ETH would have a higher token weight, if a lot of traders are short, then a higher token weight will be given to stablecoins.

If token prices are increasing, then the price of OLP will increase as well, even if there is a larger number of open long positions on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value since if prices increase the profits from that portion will be used to pay traders, and if prices decrease, the losses of traders will keep the USD value of the reserve portion the same.

If a lot of traders are short and larger weights are given to stablecoins, then OLP holders would have a synthetic exposure to the tokens being shorted, e.g. if ETH is being shorted then the price of OLP will decrease if the price of ETH decreases, if the price of ETH increases then the price of OLP will increase from the losses of the short positions.

Risks

Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.

For details of contract operation please see Contracts V1.

A non-exhaustive list of risks:

  • Smart contract risks

  • Counterparty risks: The OLP pool is the counterparty to traders, if traders make a profit that comes from the value of the OLP pool

  • Token risks: Bridged tokens may depend on the security of the bridge, pegged tokens have risks of depegging

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