Decentralized Perpetuals

Providing liquidity

Liquidity within CLP Pools

CLP stands as the liquidity provider token designated for our specific pools. Liquidity providers benefit from generated fees originating from activities like leverage trading, borrowing fees, and swaps.

Overview

The composition of CLP encompasses an index of assets tailored for swaps and leverage trading. It is mintable using any index asset and can be redeemed by burning any index asset. Pricing for minting and redemption is determined by the total value of assets within the index, inclusive of profits and losses from active positions, divided by the CLP supply.

CLP Token Addresses - i need the address

Please note that CLP is Fusion network-specific.

As CLP holders participate in providing liquidity for leverage trading, their earnings correlate with the losses of leverage traders and vice versa. Historical profit and loss data, the CLP price chart, and other statistics can be accessed in the Chainge mobile app.

Buying CLP

You can acquire CLP tokens through the Chainge mobile app and FSN is needed as gas

Any of the CLP index tokens: BTC, ETH, USDT, USDC, KAS, SYS, FIL can be utilized for purchasing CLP.

Fees vary depending on the chain and specific pools liquidity.

Following purchase, your CLP tokens will be automatically staked, and claimable rewards will be displayed in the Chainge app. Once claimed they will be added to the user’s wallet balance automatically in USDT.

Selling CLP

The process to sell CLP tokens can be executed through the Chainge mobile app.

Token Pricing

Certain index tokens may exhibit a spread. Minting CLP is calculated based on the lower value of the index token, while redemption is based on the higher value of the index token.

The value of CLP hinges on the pool's token spread.

Token Weights

Fees associated with minting, burning, or swaps differ based on actions that augment or reduce the balance of assets. For example, actions that increase ETH's proportion in the index, given its smaller presence alongside USDT, would bear a higher fee. Conversely, actions diminishing ETH's proportion would incur a lower fee.

Token weights are visible in the Chainge Finance mobile app.

Weight adjustments aim to hedge CLP holders based on traders' active positions. If traders predominantly hold long ETH positions, ETH would hold a higher token weight; if traders are mainly short, stablecoins receive a higher token weight.

In case of rising token prices, the CLP price also rises, regardless of the number of open long positions. The portion allocated for long positions sustains a stable USD value, with profits compensating for rising prices and losses offsetting drops in value.

When many traders hold short positions and stablecoins receive heavier weights, CLP holders acquire synthetic exposure to the tokens being shorted. If ETH is being shorted, the price of CLP declines with ETH price decreases; conversely, CLP price rises through losses incurred by short positions.

Risk Considerations

Prudence is advised while interacting with smart contracts or blockchain applications. Despite efforts to mitigate risks through testing and audits vulnerabilities in smart contract code may persist.

Some risks to consider:

Counterparty risks: CLP pool acts as a counterparty to traders, profit affecting the pool's value

Token risks: Bridged tokens depend on bridge security, pegged tokens entail depegging risks