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Liquidity Pool Minting & Burning Fees
Minting and Burning of $KLP can be executed on the Buy/Sell $KLP. The amount of $KLP you want to buy or sell can be entered to execute.
When minting/burning $KLP tokens there will be a fee incurred by LPs.
This dynamic fee is calibrated according to the supply and demand of the particular asset within the $KLP pool.
The fees to mint/burn $KLP will vary based on whether the action improves the balance of assets or reduces it.
📝 Example:
In the scenario where the $KLP pool has a large percentage of $ETH and a small percentage of $BUSD, actions which further increase the amount of $ETH in the pool will incur higher fees while actions which that reduces the amount of $ETH in the pool will incur lower fees.
Scenario | Action | Effect on Asset in $KLP Pool | Mint/Burn Fee |
|---|---|---|---|
$KLP pool is overweight $ETH | Mint $KLP with $ETH | $ETH increases | Higher |
$KLP pool is overweight $ETH | Mint $KLP with $ETH | $ETH decreases | Lower |
The fees for minting and burning $KLP is calculated based on (total worth of assets in index including profits and losses of open positions) / (KLP supply).
Fees for buying $KLP for the different underlying assets are shown on the bottom of Buy/Sell $KLP page.
Last modified 3mo ago