
About LP Boost
Liquidity Providers earn additional revenue during volatility
Besides earning from FEES generated by AMM from traders swapping, XLS30D AMM offers Liquidity Providers TWO uniquely novel ways to earn additional revenue, is “Harvesting of Volatility for Yield”
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“Continuous Auction Mechanism” — which winning bid from Arbitrageurs pay with LP tokens and they are destroyed but the underlying 2 assets they are a claim on are redistributed to all the other Liquidity Providers LP tokens. The quantity of XRP and the other asset in the pool remains unchanged, the 2 assets underlying the burned LP tokens were redistributed proportionally to all LP tokens.
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“Harvesting Volatility for Yield” — The AMM enacts a trading strategy that earns a spread from orders it offers on the DEX orderbook. This is where XRP’s ultra low txn fees and blazing fast 3–5sec settlement really shine ✨ Over a long duration the AMM continues to capture small amounts in a spread over and over and this VALUE CAPTURED is actually added to the AMM Pools total value. The AMM Pools policy is designed so that it will never accept offers that decrease the total value of the pool, only that keeps it the same or increases the value. As volume increases and/or volatility increases these profits the AMM earns from its “Trading Strategy” are amplified. This is only possible because of the Trio of technologies that all working in unison and the XLS30D AMM’s have been designed to always enforce the policy in its code.