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TLP

Tethys in a liquidity pool

What is TLP

TLP consists of an index of assets used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (total worth of assets in index including profits and losses of open positions) / (TLP supply).
Holders of the TLP token earn 70% of platform fees distributed in METIS (starting after liquidity bootstrap period). Note that the fees distributed are based on the number after deducting referral rewards and the network costs of keepers, keeper costs are usually around 1% of the total fees.
As TLP holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa. Past PnL data, TLP price chart and other stats can be viewed on https://stats.tethys.finance
Current breakdown for underlying token basket is:
  • 15% METIS
  • 20% ETH
  • 10% BTC
  • 5% AAVE
  • 50% USDC

Risks

Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.
For details of contract operation please read the Contracts section.
A non-exhaustive list of some risks:
  • Smart contract risks
  • Counterparty risks: The TLP pool is the counterparty to traders, if traders make a profit that comes from the value of the TLP pool