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NLP is a USDT denominated trading pool that acts as 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. Additionally, esNAR emissions are also distributed to NLP holders.
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.