π·οΈRLP
The vision of Rollup.Finance is to build a protocol that brings LPs real yield in a sustainable way.
RLP is the platform's liquidity provider credentials, representing a basket of assets including ETH, USDC, and more. 50% are stable coins and 50% are non-stable coins.
RLP's earnings are mainly composed of two parts: Staking rewards and Trader losses.
Staking rewards: provided by the platform fee.
Trader losses: when a trader makes a loss, it becomes the income of the RLP pool.
Users can deposit these assets to mint RLP tokens, providing liquidity to the protocol and earning rewards,
RLP holders provide liquidity to the protocol for leverage trading. When traders make profits,the RLP pool pays out corresponding profits to them. Conversely, when traders experience losses, it becomes income for the RLP pool.
Mint RLP
On the zkSync Era mainnet, Rollup.Finance supports pledging in ETH, WETH, USDC to mint RLP.
Steps
Once your wallet is connected, head to Rollup Finance Stake
Simply click [Stake] and pay with ETH, WETH, USDC on the Stake interface, and confirming in your wallet, you are done pledging assets to get RLP.
The RLP you got will automatically be staked and start be a part of liquidity in RLP pool to earn rewards.
To ensure the balance of RLP pool assets, there will be a 15-minute cool-down period after assets are pledged into the pool.
With the rebalance mechanism, the Stake fee may fluctuate in the range of 0%-0.2%, around 0.1%.
Redeem RLP
Enter the amount of RLP you'd like to redeem at https://app.rollup.finance/#/stake#unstake , the assets will go to your wallet and the corresponding RLP will be automatically burned
Risk Warning
The value of RLP is derived from the price of RLP, which is affected by liquidity gains and losses, and as a liquidity provider, you may suffer losses due to liquidity losses.
What determines the price of RLP
The price for minting is calculated based on the total worth of assets in the index including profits and losses, and the RLP supply.
RLP price= AUM/RLP supply
Rebalancing
The fees to mint RLP, burn RLP will vary based on whether the action improves the balance of assets or reduces it. For example, if the index has a large percentage of ETH and a small percentage of USDC, actions which further increase the amount of ETH the index has will have a high fee while actions which reduces the amount of ETH the index has will have a low fee.
Token weights are adjusted to help hedge RLP holders based on the open positions of traders. For example, if a lot of traders are long ETH, then ETH would have a higher token weight, if a lot of traders are short, then a higher token weight will be given to stablecoins.
If token prices are increasing, then the price of RLP will increase as well, even if a lot of traders have a long position on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value since if prices increase the profits from that portion will be used to pay traders, and if prices decrease, the losses of traders will keep the USD value of the reserve portion the same.
If a lot of traders are short and larger weights are given to stablecoins, then RLP holders would have a synthetic exposure to the tokens being shorted, e.g. if ETH is being shorted then the price of RLP will decrease if the price of ETH decreases, if the price of ETH increases then the price of RLP will increase from the losses of the short positions.
Rewards
1. How to calculate the Staking Rewards?
The staking reward=55% platform fee
Composition of fees
Position feeοΌopen/closeοΌ
Swap fee
Liquidation fee
Borrow fee
Mint/Burn RLP fee
Platform fees distributed to RLP holder in proportion.
e.g. The reward for each RLP holder=RLP Reward * your LP / Total RLP
The percentage of platform fees that can be allocated to Staking rewards is not a fixed value and will most likely be changed in the future.
2. How often has the Staking Reward been calculate?
The reward is calculate weekly.
Distribution time: every wednesday
e.g. the RLP Reserved(period) means the total rewards will be distributed to every RLP holder in last week.
3. How to calculate the APRοΌ
RLP APR = RLP reserved*ETH price/ 7*365 / pool value
RLP Staking Incentive Program
Rollup.Finance adds $2,500 to each cycle of RLP earnings distributions to incentivize RLP staking.
More details: Staking Incentive Program
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