Adding/Removing Liquidity in RLP
Last updated
Last updated
When a user adds liquidity to the RLP pool, they increase the amount of TVL (Total Value Locked) which increases the liquidity available for perps trading. The pool is currently a collection of the following tokens: USDC, ETH, and FUEL.
Any Liquidity provider can acquire RLP by swapping for it on . The system will find the best price to acquire RLP for you, automatically. This can either be purchasing it off the open market, or swapping it for a desired asset and depositing that into RLP directly. At the point of depositing assets into the RLP pool, the protocol will re-price the TVL in the USD value.
RLP can also be sold via Simply swap RLP for your desired asset. The RLP token could either be transferred to another trader or may be redeemed by the RLP pool, burning the RLP token, and releasing some of the currency contained in the pool.
Please note that there are currently exponentially-applied fees that are applied depending on the % of the pool asset you attempt to withdraw. This means that will not be able to deposit $100k worth of ETH into RLP and then withdraw $100k worth of USDC after the cooldown period (assuming there's only $100k worth of USDC in the pool). This prevents scenarios where a trader might leave the RLP exposed to more volatile ETH. This fee is non-existant at low % pool withdrawals, but is capped at 30% for higher withdrawals. This fee will likely be removed as TVL increases and is only a temporary measure