Liquidity Provision
Sustate Liquidity Providers may optionally add liquidity in the form of their synthetic real estate assets in order to receive APY compensation. You have the option to remove your position by redeeming and burning your liquidity tokens. All interactions with LP Pool do not affect the price of the asset used, because all work is done directly with the platform contact and does not affect the operation of the oracle.
All traders in the platform pay commissions for buying and selling - this activity also affects the APY of each individual LP pool. Commissions are reinvested in the pool and automatically added together. LPs assume the risk of non-permanent losses, because their funds can be used to pay positive PnL to the trader, but it will seek to be overlaid by Sustate commissions. However, LPs often assume the reward because traders may have neutral or negative PnL.
Last updated