LogoLogo
  • Electra
    • About Electra
  • Electra Terminal Guide
    • 1.1 Connecting your EVM wallet
    • 1.2 BNB/ETH Gas Fees
    • 1.3 Deposits and Withdrawals
    • 1.4 1-Click Trading
    • 1.5 Notifications
    • 1.6 Electra Security & Audit Report
    • 1.7 Airdrop Checker FAQ
  • Electra Trading School
    • 2.1 What Are Perpetual Futures?
    • 2.2 Competitive Advantages of Electra for Perpetual Futures Trading
    • 2.3 Trading Fees on Electra
    • 2.4 Overview of Primary Order Types on Electra
    • 2.5 Futures Liquidation Protocols on Electra: Formula and Process
    • 2.6 How to Reduce the Risk of Liquidation on Electra
    • 2.7 Automatic Negative Balance Reset on Electra
    • 2.8 How to Adjust Leverage on Electra
    • 2.9 What Is Slippage?
    • 2.10 How to Use the Order History Feature on Electra
    • 2.11 Order Errors on Electra: Causes and Solutions
    • 2.12 Referral Program
  • Electra Tournaments
    • SQUAD Games Season 2
      • General Rules
      • How to Participate
      • Squad Formation
      • Squad Referral Links
      • Tournament Prizes
      • FAQs
    • SQUAD Games Season 1
      • Tournament Prizes
      • Tournament Schedule
    • PnL Challenge
  • Electra Liquidity Provider Pool
    • Introduction to ELPP
    • How ELPP Works
    • ELPP Tokens
    • Withdrawal System
      • Understanding Epochs
      • Timelock Calculation
      • Token Transfer Restrictions
      • Partial and Flexible Withdrawals
    • Collateralization
    • APY Calculation
    • Risks and Considerations
    • FAQ
Powered by GitBook
On this page
  • Basic Flow
  • Main Components
  1. Electra Liquidity Provider Pool

How ELPP Works

PreviousIntroduction to ELPPNextELPP Tokens

Last updated 2 months ago

Basic Flow

ELPP works through a straightforward process:

Liquidity Contribution:

  • When you deposit funds, you receive ELPP tokens representing your share in the pool.

  • These tokens track your ownership and reflect your claim on the pool’s assets and trading outcomes.

Broker Operations:

  • A dedicated market maker utilizes the pooled liquidity to execute trades on the market..

  • Profits (or losses) from these operations directly impact the pool’s value.

Automatic Profit Distribution:

  • Profits increase the value of each ELPP token automatically

  • Trading gains are automatically put in the pool, increasing the value of each ELPP token.

  • This model eliminates the need for manual claiming or harvesting of rewards.

Main Components

The Liquidity Pool

The core of ELPP is a shared liquidity pool that:

  • Collects assets from multiple providers

  • Functions as a tokenized vault (each provider receives tokens representing their share)

  • Automatically distributes profits to all participants

  • Protects against sudden mass withdrawals

The Broker (Market-Maker)

The broker component:

  • Uses pooled liquidity for market-making operations

  • Executes trading strategies to generate profits

  • Reports performance metrics that affect the withdrawal system

The Epoch-Based Withdrawal System

The withdrawal system:

  • Divides time into fixed periods called "epochs" (typically 3 days each)

  • Assigns withdrawal requests to future epochs based on performance

  • Ensures orderly exits that protect the pool during market volatility