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MLP

MLP is the platform's liquidity provider token.

Overview

MLP consists of an index of assets used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (the total worth of assets in the index including profits and losses of open positions) / (MLP supply).
Holders of the MLP token earn Escrowed MMY rewards and 60% of platform fees distributed in FTM. Note that the fees distributed are based on the number after deducting referral rewards and the network costs of keepers, keeper costs are usually around 1% of the total fees.
As MLP holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa. Past PnL data, MLP price chart, and other stats can be viewed on the Stats page.

Minting and Redeeming

Minting MLP
  • A list of MLP 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.
  • Key in the amount of MLP you'd like to purchase on the Buy MLP section of the Buy page.
Fees for buying MLP will vary based on which assets the index has less or more of, the Buy MLP page will show which assets have the lowest fee.
After buying your tokens will automatically be staked and you will start earning Escrowed MMY and FTM / WETH rewards, you can check your rewards on the Earn page.
Redeeming MLP
Key in the amount of MLP you'd like to redeem in the Sell MLP section of the Buy page. Note that there is a minimum holding time of 2 hours after minting before you can redeem MLP tokens.

Rebalancing

The fees to mint MLP, burn MLP, or 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 FTM and a small percentage of USDC, actions that further increase the amount of FTM the index has will have a high fee while actions that reduce the amount of FTM the index has will have a low fee.
The token weights can be seen on the Dashboard.
Token weights are adjusted to help hedge MLP holders based on traders' open positions. For example, if a lot of traders are long FTM, then FTM 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 MLP will increase as well, even if a lot of traders have a long position 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. MLP holders would have a synthetic exposure to the tokens being shorted, e.g. if FTM is being shorted then the price of MLP will decrease if the price of FTM decreases, if the price of FTM increases then the price of MLP will increase from the losses of the short positions.
Last modified 2mo ago