Providing Liquidity

CLP is the liquidity provider token for Cultured. Liquidity providers earn fees from leverage trading, borrowing fees and swaps.

Overview​

CLP consists of an index of stablecoin and yield generating assets used for swaps and leverage trading. The current basket of coins in CLP includes:

• pUSD

• nRWA

• nYIELD

• nTBILL

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 (total worth of assets in index including profits and losses of open positions) / supply.

Index Weight:

In incentivize there is enough pUSD to pay out profits and losses for traders, there is an optimal weight for each assets within CLP. Users might experience slippage if they deposit an asset that is currently overweight in the LP pool.