LP Token Bifurcation
YNOT's approach to providing flexible liquidity starts with bifurcation of LP tokens.
LP token is basically a token that is given to Liquidity providers to track their position over a liquidity pool. These tokens could either be ERC20 tokens or an ERC721 token which can represent their positions.
If we provide Liquidity to any platform, other than YNOT finance E.g over MATIC-USDT pool, we get a single kind of LP token that represents our Liquidity position over that pool.
MATIC-USDT pool = MATIC-USDT LP token
That single kind of token could be representing just the MATIC we have provided or both MATIC and USDT that we have provided.
Over YNOT finance, a pool like MATIC-USDT generates two types of LP tokens one representing MATIC while the other representing USDT only.
For Matic - MATIC LP token
For USDT - USDT LP token
Because of this a liquidity provider can choose to own a single kind of LP token owning only one side of the pool or can own both kinds of LP token owning both side of the pool (MATIC & USDT). This gives flexibility for the liquidity providers to choose what they want to own according to their market view.
Last modified 1yr ago