XODEX Liquidity Provider (XOLP)
XOLP comprises a pool of stablecoins utilized for swaps and leverage trading. It can be minted using any index asset on any chain, and burnt to redeem.
The price for minting and redemption is determined by dividing the total worth of assets in the index, including profits and losses from open positions, by the supply of XODEX.
XOLP holders receive rewards from three sources:
- XODEX Rewards (generated from swaps and leveraged trading, converted to XODEX)
- Market Making (a small spread on assets, benefiting XOLP holders through token appreciation)
- Vested XODEX (reward tokens vesting into XODEX over 12 months when staked in the vXODEX vesting vault).
It's important to note that the distributed fees are calculated based on the amount after subtracting referral rewards and the network costs of keepers. Typically, keeper costs account for approximately 1% of the total fees.