$HLP
Last updated
Last updated
HLP: This token is awarded to users who provide liquidity and has the following characteristics:- It possesses an inherent USD value and can be freely transferred.- Purchasing HLP is equivalent to providing liquidity to HyperionX, whereas selling HLP signifies the withdrawal of liquidity.
The price of HLP is determined by the total equity of liquidity providers (LPs) in conjunction with the number of HLPs circulating in the market.
To more accurately reflect the profit and loss situation of LPs, in calculating LP equity, we consider not only the amount of USDX in the liquidity pool but also the unrealized profits and losses from users' perpetual contract trades.
Calculation formula: HLP Price = (Asset Value in Liquidity Pool - User's Unrealized Profit) / Number of HLPs in Circulation.
Total user's unrealized profit includes: Unrealized Profit - Funding Fee.
Case:
| Liquidity Pool Asset Value | 1,000 USD |
|---|---|
You can choose to inject liquidity into the pool before the end of each epoch to generate HLP. HLP tokens must be bought and sold in accordance with the value of the assets deposited by the user. For the liquidity pool, users can mint LP tokens corresponding to the value of liquidity injected; when withdrawing liquidity, LP tokens are destroyed, and assets are withdrawn based on the value of the destroyed LP tokens. It's important to note that when users interact with HLP, their assets do not directly engage with the liquidity pool but wait until the current epoch ends to complete the purchase or sale. Currently, we only support using USDX from Hyperion Exchange as the asset for the liquidity pool, and users can convert stablecoin WUSDC into USDX at any time. Under normal circumstances, users' requests to withdraw liquidity by selling HLP will be executed smoothly. However, when the liquidity pool is temporarily insufficient, requests to withdraw liquidity may be partially executed.
Total amount of HLP that can be destroyed by the user: User's HLP sell ratio = User's requested sell amount / Total sell amount requested in the current epoch
Total amount of USDX that can be received by the user: Total USDX receivable by user = Actual sell amount in current epoch * User's HLP sell ratio * HLP price
Amount of HLP to be returned to the user: Amount of HLP returned to user = User's requested sell amount - (Actual sell amount in current epoch * User's HLP sell ratio)
Case:
| User A's Requested Quantity of HLP for Sale | 150 |
|---|---|
Number of HLPs
1,000
Unrealized Profit
500 USD
Funding Fee
100 USD
HLP Price
(1000-400)/1000=0.6
Total HLP Quantity in the Current Epoch
1000
Actual Sold Quantity of HLP in the Current Epoch
600
Assumed HLP Price
1
Total USDX Amount User A Can Receive
90
Quantity of HLP Returned to User A
60