$MLP (Moonlander Liquidity Pool)
Moonlander Liquidity Pool acts as the counterparty of all trades executed on Moonlander. It comprises a series of bluechip assets like $BTC, $ETH, and stablecoins. Asset weightage of the pool will vary based on the deposits and withdrawals by liquidity providers.
$MLP is the index token of all the underlying assets in the MLP. By providing liquidity to the MLP, you are buying and auto-staking $MLP, which allows you to earn a portion of the protocol revenue.
🖐️ How can I buy and stake $MLP?
You can buy $MLP with any of the supported assets in the MLP with a mint fee. MLP mint fee varies depending on the weightage of the assets in the MLP. If the weightage is lower than the target percentage, you can buy $MLP with that asset at a lower fee, and vice versa. This maintains MLP’s target composition as liquidity providers are incentivized to balance the pool. Once you have purchased the $MLP, it will be auto-staked to start earning rewards.
Our Moonlander Liquidity Pool and $MLP are preparing for launch. Buckle up, Striders.
💹 How much does it cost to buy/sell $MLP?
The rate depends on the MLP composition and the token you are trying to buy/sell
Buying/selling with stablecoins: 0 - 0.3%
Buying/selling with non-stablecoins: 0 - 0.7%
Check our website to see the latest rate:
Go to “$MLP Overview” > “Pool Composition”
💰 What rewards do I get by staking $MLP?
You will earn the following rewards by staking $MLP:
$CM - time-locked version of our native token $FM
$MLP price growth - as fees and trader losses are added into the liquidity pool, increasing $MLP value
Below are what go into MLP as rewards to stakers:
60% of Open & Close fees
All of the following fees:
Holding fees paid by traders
Losses and liquidation made by traders
MLP mint and burn fees by stakers
As the price of $MLP increases over time — driven by protocol revenues such as trading fees and trader losses— your staked $MLP becomes more valuable.
When you eventually sell $MLP and withdraw your underlying liquidity, you'll receive more tokens than you initially deposited, reflecting the growth in $MLP value. This price appreciation acts as a passive yield on top of any $CM emissions you earn while staking.
🧮 How is the price of $MLP calculated?
Price of $MLP = AUM / $MLP Supply
where AUM = sum of (poolTokenAmount * tokenPrice) + unrealizedPnL
The value of AUM is derived from
The composition of the MLP pool, i.e. amount of each asset in the pool
The price of each underlying assets
Fees collected from traders and stakers - open/close fees, holding fees, MLP mint and burn fees
Profits paid out to traders, or loss gained from traders
Staking yield earned by smart contracts from vTokens
💱 How does unrealized PnL impact MLP?
Think of the MLP pool as Mission Control for all trading operations. While we serve as the counterparty to all trades, the difference between long and short positions (net Open Interest) is what impacts our pool most, as it reflects the overall market exposure of traders within Moonlander:
Positive Unrealized PnL:
MLP pool prepares to distribute rewards to traders
Pool liquidity will decrease hence price of $MLP will remain stagnant or decrease
Negative Unrealized PnL:
MLP pool receives the money lost by traders
Pool capacity grows hence price of $MLP will increase
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