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 the pool, ensuring seamless trading while earning rewards.
Official Contract Address:
View on Sui explorers
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 revenues from
- Trading Fees of opening and closing positions
- Borrowing Fees of open positions
- Swap Fees
- 100% of revenues from
- Funding Fees of open positions
- Earnings accumulate automatically within each TLP token, increasing its price and compounding returns.
- Higher trading volume leads to higher earnings for TLP holders.
Extra Incentives
- Enjoy an additional 20% APR in $TYPUS tokens, which can be harvested 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.
The weight of each asset in the TLP pool shifts based on market activity. The fees to mint TLP, burn TLP or to perform swaps with TLP will vary depending on how the trade affects asset balance.
- Trades that improve balance receive fee discounts.
- Trades that disrupt balance incur higher fees.
This dynamic fee model encourages LPs to help maintain optimal asset allocation amid high trading volumes and liquidity fluctuations.
- Contribute tokens to the Typus Liquidity Pool (TLP) to earn fee shares and incentives.
- TLP tokens represent your proportional ownership of the pool.
- Deposit fees apply when minting TLP.
Navigate to the TLP page. Tap the DEPOSIT tab, select the token you want to trade for TLP, enter the amount, and confirm the transaction. Once deposited, your TLP balance will be updated.
Removing liquidity from TLP involves two steps:
- Unsubscribe โ Enter the TLP amount you wish to burn and start a 5-day cooldown period.
- Claim โ After the cooldown, choose a token to withdraw from TLP. Claim fees apply when burning TLP.
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.
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