👑xLP

xLP is the platform's liquidity provider token.

Overview

xLP consists of an index of assets used for swaps and leverage trading. 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) / (xLP supply).

For BNB Chain holders of the xLP token earn Escrowed TFX rewards and 70% of platform fees distributed in BNB. Note that the fees distributed are based on the number after deducting referral rewards and the network costs of keepers, keeper costs are usually around 1% of the total fees.

Staked xLP token address (BNB Chain): 0x

As xLP holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa. Past PnL data, xLP price chart and other stats can be viewed on https://stats.tfx.market.

Minting and Redeeming

Minting xLP

• Bridge any of the xLP tokens to BNB Chain a list of xLP tokens can be found on the Dashboard.

  • Fees will be lower for tokens that the pool has less of, check the "Save on Fees" section to get the lowest fees

  • You should buy the token with the lowest fees from BNB and then bridge that token directly as these tokens are likely more expensive to purchase on BNB Chain

• Key in the amount of xLP you'd like to purchase on: https://tfx.market/#/buy_xlp

Fees for buying xLP will vary based on which assets the index has less or more of, the Buy xLP page will show which assets have the lowest fee.

After buying your tokens will automatically be staked and you will start earning Escrowed TFX and BNB rewards, you can check your rewards at https://tfx.market/#/earn.

Redeeming xLP

Key in the amount of xLP you'd like to redeem at https://tfx.market/#/buy_xlp#redeem. Note that there is a minimum holding time of 15 minutes after minting before you can redeem xLP tokens.

Rebalancing

The fees to mint xLP, burn xLP or to perform swaps will vary based on whether the action improves the balance of assets or reduces it. For example, if the index has a large percentage of BNB and a small percentage of BUSD, actions which further increase the amount of BNB the index has will have a high fee while actions which reduces the amount of BNB the index has will have a low fee.

The token weights can be seen on the Dashboard.

Token weights are adjusted to help hedge xLP holders based on the open positions of traders. For example, if a lot of traders are long BNB, then BNB would have a higher token weight, if a lot of traders are short, then a higher token weight will be given to stablecoins.

If token prices are increasing, then the price of xLP will increase as well, even if a lot of traders have a long position on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value since if prices increase the profits from that portion will be used to pay traders, and if prices decrease, the losses of traders will keep the USD value of the reserve portion the same.

If a lot of traders are short and larger weights are given to stablecoins, then xLP holders would have a synthetic exposure to the tokens being shorted, e.g. if BNB is being shorted then the price of xLP will decrease if the price of BNB decreases, if the price of BNB increases then the price of xLP will increase from the losses of the short positions.

Risks

Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.

For details of contract operation please read the Contracts section.

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