Typus Liquidity Pool (TLP)
The Typus Liquidity Pool (TLP) is the backbone of the Typus Perps trading ecosystem, providing essential liquidity for perpetual traders. Liquidity providers (LPs) contribute to these pools, ensuring seamless trading while earning rewards.
To optimize capital efficiency and protocol security, Typus utilizes a dual-pool architecture:
- Main TLP: A multi-asset index pool (supporting assets like SUI and USDC) that serves as the primary counterparty for major perpetual markets. It is designed for diversified liquidity and broad market exposure.
- Isolated TLP (closed): Specialized, asset-specific pools designed for more volatile altcoin markets โ starting with the TYPUS/USD market. This model isolates specific asset risks from the rest of the protocol, allowing for tailored risk parameters and dedicated liquidity for the $TYPUS ecosystem.
By participating in either pool, LPs act as the counterparty to traders, earning a share of trading fees, funding rates, and liquidation premiums while providing the depth necessary for a robust decentralized exchange.
Pool | Market | Vibe | Contract Address | View on explorers |
|---|---|---|---|---|
Main TLP (mTLP) | All except TYPUS | Diversified & robust | 0x07be4837e4c0011a14b2821f62493bf26f3a9c1ffbede99e404bd27df6f25218::mtlp::MTLP | |
Isolated TLP for TYPUS market (iTLP-TYPUS) (closed) | TYPUS | Targeted exposure & high growth | 0x8f608c247f09e7fb7ba222fb2843c6942045dab103d79a123c7fdcadfccddd4c::itlp_typus::ITLP_TYPUS |
How TLP Works
Liquidity Provision
- Users deposit supported assets (SUI, USDC) to mint TLP tokens, representing their share of the pool.
Counterparty Role
- TLP acts as the counterparty to traders - when traders profit, TLP holders incur losses, and vice versa.
Yield Generation
- TLP holders passively earn from fees and leverage trading activity:
- 70% of the revenue from
- Trading fees of opening and closing positions
- Borrow fees of open positions
- Swap fees if applicable
- 100% of the revenue from
- Funding fees of open positions
- Net liquidation fees (remaining collateral after covering trader losses and allocating 1% to the insurance fund)
- Earnings accumulate automatically within each TLP token, increasing its price and compounding returns.
- Higher trading volume leads to higher earnings for TLP holders.
Extra Boost
- Enjoy an additional APR in $TLP tokens, which can be compounded anytime.
Dynamic Composition
- The asset allocation within the TLP pool adjusts automatically based on trading activity and demand, optimizing for fee structure and profitability.
- TLP asset allocation adjusts automatically based on trading activity and demand, optimizing liquidity and profitability.
Isolated TLP(closed)
While the standard TLP acts as a multi-asset index pool, Typus Perps uses the Isolated TLP model to support specific asset markets with tailored risk profiles. This model is first being deployed as an MVP for the $TYPUS perpetual market.
For LPs, it offers a way to gain exposure to the fees and PnL of a specific asset market without the "index" exposure of the main TLP.
For the Protocol, it serves as a "walled garden" that allows Typus to list new and volatile altcoins while maintaining the highest level of security for the core treasury.
Key Characteristics
- Risk Containment: The Isolated TLP separates the liquidity of high-volatility or native assets from the main TLP. This ensures that the price fluctuations of $TYPUS do not impact the performance or risk exposure of LPs in the broader multi-asset pool.
- Targeted Liquidity: LPs can choose to provide liquidity specifically for the $TYPUS perpetual market. This allows the protocol to build deep, asset-specific liquidity for assets that require specialized market-making strategies.
- Customized Parameters: Because the pool is isolated, it utilizes its own set of risk guardrails, including:
- Specific Oracle: Tailored to the volatility of the $TYPUS token.
- Specialized Fee and OI cap: Optimized for the unique supply/demand dynamics of the asset.
- ADL & T+1 Profit Lock: To maintain market stability, Typus Perps will deleverage the most profitable opposing positions when certain condition is triggered. In addition, realized profits in the Isolated $TYPUS market are subject to a 24-hour lock, while initial margin remains instantly withdrawable.
How TLP APR is Calculated
TLP APR is composed of two main components:
- Fee APR from TLP fee sharing in the past week
- This reflects the fees shared to TLP from perpetual trading activity, excluding asset price changes and trader PnL.
- Fees are auto-compounded into each TLP token after every trade. The fee breakdown is as follows:
- 70% of revenues from trading fees, borrow fees, and swap fees
- 100% of revenues from funding fees, and net liquidation fees (remaining collateral after covering trader losses and allocating 1% to the insurance fund)
Fee Breakdown | % Shared to TLP |
|---|---|
Trading fees | 70% |
Borrow fees | 70% |
Swap fees | 70% |
Funding fees | 100% |
Net liquidation fees | 100% |
- Boosted APR from TLP bonus
- Bonus rewards are distributed to liquidity providers hourly, offering additional yield on top of fee sharing.
- Total APR = Fee APR + Boosted APR
- Fee APR = ( Cumulative TLP Fees in USD at t - Cumulative TLP Fees in USD at t-7d ) / Total Staked TLP Value in USD * 52 weeks in a year
- Boosted APR = ( Hourly TLP Bonus in USD / Total Staked TLP Value in USD ) * 8,760 hours in a year
- The combined APR reflects the total earning potential for TLP holders, updated in real time.
Target Weight Rebalancing
The asset weights within the TLP pool adjust dynamically based on market activity. Fees for minting, burning, or swapping TLP vary depending on how the trade impacts asset balance:
- Trades that improve balance receive lower fees
- Trades that worsen imbalance incur higher fees
This dynamic fee model incentivizes users to support healthy pool composition, especially during periods of high volume and shifting liquidity. To maintain optimal allocation, Typus may rebalance token weights within the TLP when necessary.
Supply Liquidity to Mint TLP
- Contribute tokens to the Typus Liquidity Pool (TLP) to earn fee shares and boosts.
- TLP tokens represent your proportional ownership of the pool.
- Mint fees apply when minting TLP.
Go to the TLP page and open the MINT tab. Choose the token you want to trade for TLP, enter the amount, and check the box to stake TLP for boosted APR if desired. Confirm the transaction, and your TLP balance will be updated.
Remove Liquidity to Burn TLP
Enter the TLP amount you wish to burn, and choose a token to withdraw from TLP. Burn fees apply when burning TLP.
Risks
Profit and Loss (PnL) Impact on TLP
- Trader profits reduce the value of TLP, as winnings are paid out from TLP.
- Trader losses increase the value of TLP, as those funds are retained by TLP holders.
Token Price Volatility
- The TLP holds a mix of stablecoins and volatile assets.
- Users may withdraw tokens that are worth less than their initial deposit due to market fluctuations.