Moonlander Liquidity Pool (MLP)

Moonlander Liquidity Pool (MLP) is the counterparty of all trades on Moonlander. Users can provide liquidity by supplying any of the supported assets and auto-stake $MLP (read more here).

In order to trade on Moonlander, traders need to pay collateral using any of the supported assets in the MLP: zkCRO, vUSD. Profits made by traders will be paid out by the MLP, while losses made by traders will be collected vice versa.

When traders open positions, the collateral is not immediately sent to the MLP; instead, they are temporarily held in a designated area known as the “margin pool.”

Upon closing their positions, the following occurs:

• If traders achieve a profit, the margin will be withdrawn from the margin pool and returned to them, while their profits will be sourced from the MLP.

• Conversely, if traders incur a loss, the loss amount will be deducted from the margin pool and transferred to the MLP. The remaining margin will then be returned to the traders.