Heard some of you going WTF is #ALP? 🤔
Here's a crash course in LP yield:
APY reflects in ALP's NAV
> 40% of AstherusEX trading fees
> Funding & liquidation fees
> Mint/burn fees
> #ALP's PnL
AND
> 5x Au points
More trading vol = more fees = higher APY.
ALP profits = higher APY.
Plus, earn Au for your mint and then hourly.
#ALP is a LP token made up of a pool of assets.
It acts as the counterparty of traders on AstherusEX, our onchain perp DEX. If a trader longs, ALP opens a short by drawing from pooled liquidity. If a trader shorts, ALP longs.
When ALP profits, NAV⇧
When ALP loses, NAV⇩
So what's in that pooled liquidity?
> 80% stablecoins on @BNBCHAIN, the rest in bluechips like $BTC $ETH
> Stablecoins make up 90% for ALP on @arbitrum
Mint #ALP with supported assets, including $asBNB $USDF
Buy fee⇩if you boost target weight.
By design, ALP reduces LP risk by balancing open interest (OI) on AstherusEX.
> Long vs short OI determine to whom funding fees are paid to.
> ALP only holds the net position of traders.
> ALP is the counterparty of traders and will always hold the less-popular positions. Thus, ALP always receives funding fees.
@BNBCHAIN @arbitrum > If the difference between long vs short OI is huge, ALP gets more funding fees to reduce its holding risk.
> If long vs short OI is more balanced, ALP's overall risk exposure is lower.
@BNBCHAIN @arbitrum Don't trade?
You can still get exposure to perp markets through #ALP, while earning 32.4% APY* and Au points for $ASS!
*real-time APY may differ
Find ALP on Earn:
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