Key Changes in Liquidity Management

Migration to Single-Sided Pools

The transition from the WLP model to single-sided pools introduces a more structured and independent approach to liquidity provisioning. Each token pool now operates as a separate entity, meaning it has its own performance metrics, risks, and rewards. This siloed structure ensures that profits and losses are confined within each pool, providing LPs with greater clarity and control over their assets.

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Independent P&L Distribution

• Profits are distributed separately for each token pool at the end of each weekly epoch.

• If a pool does not generate profit during an epoch, no distribution occurs for that period.

• Losses are contained within individual pools, ensuring that LPs' returns are directly linked to the real performance of their deposited assets.

This transparent and fair profit-and-loss mechanism allows LPs to make informed decisions and manage their liquidity strategies more effectively.