Liquidity Pools

NLP is a USDT-denominated trading pool that is a counterparty to all traders on Narwhal. When traders close a trade in profit, USDT is paid out to them from the NLP vault and vice versa. NLP Holders are compensated for taking on this risk by receiving 60% of trading fees paid on the Narwhal platform, directly incremented into NLP's price.

NLP's price is constantly rebasing, and its mint price will be calculated as:

(USDT balance + trader's cumulative profit and loss + accrued fees) / outstanding NLP.