KLP Minting & Burning Fees
Becoming a Liquidity Provider...
Last updated
Becoming a Liquidity Provider...
Last updated
Depositors pay a fee when depositing / withdrawing from the KLP pool. KLP Minting & Burning Fees range from 0.0% to 0.85%.
Depositors engaging in the minting of KLP tokens on KTX.Finance are subject to a dynamic fee structure, influenced by the supply and demand dynamics within the KLP pool.
KLP Pool | Action | Effect on Asset in $KLP Pool | Mint/Burn Fee |
---|---|---|---|
Overweight $ETH | Mint KLP with ETH | ETH increases | Higher |
Underweight $ETH | Mint KLP with ETH | ETH increases | Lower |
The inverse relationship is true for the burning of KLP.
You can view live composite of the KLP Pool here
The dynamic fee structure is strategically designed to incentivize users to maintain a balanced pool. Lower fees for actions that enhance asset balance encourage users to contribute positively to the pool's equilibrium.
New depositors can deposit into KLP here.
Users can save on fees by depositing into KLP with underweighted assets.