Earn LLP Pool
Last updated
Last updated
The Earn LLP Pool / Investor can be found: https://app.javsphere.com/llppool
The terms Investor, Earn Side, LeverageX Liquidity Provider, and LLP Pool are used interchangeably.
LeverageX Earn offers a seamless way to provide liquidity using BTC, ETH, or USDC in exchange for the LLP (LeverageX Liquidity Provider) token. The LLP token represents a proportional share of the liquidity pool and its growth, allowing liquidity providers to benefit from the trading fees and liquidations generated on the platform.
As a liquidity provider, you deposit BTC, ETH, or USDC into the LeverageX liquidity pool. In return, you receive the LLP token at the current LLP token price. Over time, the value of the LLP token probably increases as trading fees and liquidations are added to the pool. When you decide to withdraw, you redeem your LLP tokens for the equivalent value in BTC, ETH, or USDC. LLP tokens gain value as:
Trading fees from LeverageX operations are added to the liquidity pool.
Liquidations from traders are captured in the pool.
The value growth of the LLP token is tax-optimized as there are no daily rewards—investors can decide when to realize their gains.
The price of the LLP token reflects the value of the underlying pool (BTC, ETH, USDC).
If BTC or ETH increases in price, the LLP value rises without any fees or liquidations.
Conversely, if prices fall, LLP value decreases proportionally unless offset by trading fees or liquidations.
Liquidity is locked for 3 months during this phase to ensure protocol stability and security. The LLP token cannot be traded on secondary markets. Click here for more information.
After the introductory phase, liquidity is not locked anymore to offer greater flexibility, and The LLP token could become tradable on secondary markets, adding an extra layer of liquidity and opportunity for investors. Investors can sell LLP for any asset in the LLP Pool (BTC, ETH, USDC).
Liquidity providers can contribute BTC, ETH, or USDC with no strict distribution targets.
A recommended target ratio for BTC/ETH/USDC will be introduced. This ratio will adjust based on market conditions and liquidity demands. Liquidity providers will be encouraged to maintain this ratio, similar to the Jupiter/JLP mechanism, ensuring an optimized pool balance.
The LLP token’s value directly reflects the success of the LeverageX platform, driven by trading volume, fees, and liquidations. Historical data from other platforms indicates substantial growth potential for liquidity providers. See: https://jup.ag/perps-earn
Example: In simulated trading competitions, LLP token performance showcased significant value appreciation tied to trading activity.
With two independent security audits and KYC implemented during the introductory phase, LeverageX provides a secure foundation for both liquidity providers and traders.
LeverageX has been thoroughly audited by two independent, leading security firms, SolidProof and AuditOne (in progress), to ensure the safety of funds and the integrity of smart contracts.
LeverageX leverages Hypernative.io, a cutting-edge platform designed for real-time security monitoring and risk management in Web3 ecosystems. This partnership underscores LeverageX’s commitment to maintaining the highest levels of safety and reliability for its users and liquidity providers:
Real-Time Threat Detection: Identifies potential vulnerabilities or suspicious activities on-chain and off-chain before they escalate.
Advanced Analytics: Analyzes data from blockchains, DeFi protocols, and more to detect risks early.
Swift Action: Automated alerts allow for immediate responses to potential threats.
This partnership enhances trust, protects liquidity, and ensures a smooth trading experience, positioning LeverageX as a secure leader in the DeFi space.
KYC and whitelisting are mandatory for all liquidity providers, further enhancing trust and security.
While mathematically improbable, if more trades are won than lost over an extended period, the pool could face reduced profitability. However, historical data from similar platforms demonstrates this scenario is rare. See: https://jup.ag/perps-earn
Every DeFi project carries inherent risks. LeverageX mitigates these with robust security audits, KYC procedures, and ongoing security monitoring. Learn more.
LeverageX Earn offers a unique, secure, and profitable opportunity for liquidity providers to participate in the rapidly growing Base ecosystem. By combining a robust tokenomics structure, a trusted liquidity pool, and high security standards, LeverageX is poised to redefine decentralized leveraged trading.
