$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

• Check our website to see the latest rate

There is a 24-hour cooling period between buying and selling $MLP.

💰 What rewards do I get by staking $MLP?

You will earn the following rewards by staking $MLP:

• $CM (coming soon)

• $MLP price growth

Majority of Moonlander's revenue will be distributed as rewards to MLP stakers, including:

• 90% of the open & close fees paid by traders

• All of below:

  • Holding fees paid by traders

  • Losses and liquidation made by traders

  • MLP mint and burn fees by stakers

  • Staking yield earned by smart contracts from vTokens

These revenues will be auto-compounded back into the MLP pool, doubling yields on $MLP, raising $MLP price, and giving more rewards to stakers!

🧮 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

1. The composition of the MLP pool, i.e. amount of each asset in the pool

2. The price of each underlying assets

3. Fees collected from traders and stakers - open/close fees, holding fees, MLP mint and burn fees

4. Profits paid out to traders, or loss gained from traders

5. 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