XLP
XLP is the token for liquidity providers, and profits earned from leveraged trading, swaps, fees, and other rewards are distributed to these liquidity providers in the form of XLP:
Profits from leveraged trading, swaps, fees, and other reward earnings enter the liquidity pool, causing the indexed assets corresponding to XLP tokens in the pool to increase. However, since the number of redeemable XLP tokens remains constant, the exchange ratio decreases, implying an increase in the price of XLP. This allows for the redemption of more assets.
At the same time, the "X" in XLP represents an index and does not solely refer to a specific LP token. As we gradually add more blue-chip token liquidity pools, each pool can have liquidity added individually, accompanied by unique LP tokens. The risks and returns for each pool are also distinct.
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