What is $VLP ?
Vela exchange liquidity token
$VLP
VLP is the liquidity provider token for VELA Exchange platform. It’s based on USDC staking, and can be redeemed for USDC at any time. Anybody can stake USDC to mint VLP and earn fees based on generated trading volume on the platform.$VLP Contract Address: 0x4e0D4a5A5b4FAf5C2eCc1C63C8d19BB0804A96F1
Staking Rewards
VLP stakers can earn up to 60% of the platform fees generated via trading activity.
By staking their VLP, users receive a share of 10% of the total perpetual fees in esVELA for each corresponding rewards cycle.
Minting/Redeeming
In order to Mint VLP you need to:
Bridge USDC from any ecosystem to Arbitrum.
Stake USDC (ensure that some ETH is available in your wallet to pay for the network transaction fees) by entering the amount of VLP you’d like to mint.
Why VLP?
VLP is to provide liquidity for traders, allowing them to take positions with leverage. If traders take a loss then the VLP holders will make profit, if the traders take a profit then VLP holders will make a loss. Although VLP value is market neutral and is not directly affected by the crypto market volatility, holding VLP still bears risks. For taking these risks, VLP stakers can earn up to 60% of the platform fees generated via trading activity.
Source: Vela Knowlege Base, Token Economy
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