🏦Liquidity Provision (LP) Window
Last updated
Last updated
This window allows clients to manage their investments in liquidity pools of various instruments.
The liquidity pool of an instrument consists of two main parts - Instrument Tokens and Instrument Currency.
It is assumed that during the life of the pool, unless additional investments are made, the product of tokens * currency, where tokens are the number of Instrument Tokens in the pool, and currency is the amount of Instrument Currency in the same pool, remains constant.
Half of the commission proceeds go to specialized pool accounts. If there are funds in both accounts (Instrument Tokens and Instrument Currency), netting occurs at the current market price, so that at least one account has a zero balance. Funds from this netting go to the main pool accounts.
Each client who has invested in the pool receives a certain number of Pool Tokens of the corresponding instrument. Thus, each Pool Token contains a certain amount of Instrument Tokens and Instrument Currency. This amount is easily calculated by dividing the total number of Instrument Tokens or Instrument Currency, taking into account the commission accounts, by the total number of Pool Tokens.
The information field of this window is a scrollable list consisting of 5 fields:
Ticker — short name of the instrument
Pool Size — pool size converted to Instrument Currency at the current market price
Token Value — value of one Pool Token converted to Instrument Currency at the current market price
Total Tokens — total number of Pool Tokens
Client Tokens — number of Pool Tokens held by the client
The number of Pool Tokens is an integer and cannot be split.
To the left of each instrument, there is an icon, clicking on which you can initiate the purchase or sale of Pool Tokens.
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