[1] LP Tokens

LP Tokens are a specialized category of DPTF Tokens designed to represent liquidity in SWP-Pairs (Liquidity Pools). These tokens follow a specific naming convention to encode crucial information about their origin and function within the ecosystem.

Naming Format

Each LP Token’s name is structured as follows:

[Type]|[TokenTickers]|LP-[BlockHashSuffix]

1. Type Prefix

The name begins with a single letter indicating the type of SWP-Pair (Liquidity Pool) the LP Token is associated with. This prefix categorizes the pool and guides the type of liquidity provisioning strategy involved.

  • S: Represents a Stable SWP-Pair A stable pool, typically composed of assets with fixed exchange rates (e.g., stablecoins).

  • W: Represents a Weighted Constant Product SWP-Pair Pools where the assets have a customizable weight ratio, allowing more flexible liquidity strategies (e.g., 60/20/20 ratio instead of the traditional 33/33/33).

  • P: Represents a Constant Product SWP-Pair A traditional liquidity pool that uses the standard constant product formula (x * y = k), typically balanced 50/50 between the two assets.

This type prefix is immediately followed by a pipe symbol |.

2. Token Tickers

Following the type prefix, the tickers of the tokens forming the SWP-Pair are listed, separated by dashes (-). This section clearly identifies the assets backing the LP Token, indicating the specific cryptocurrencies or tokens involved in the liquidity pool.

  • Example: In LKDA-OURO-WKDA, the assets backing the LP Token are:

    • LKDA: Liquid Kadena — A liquid staking derivative of Kadena.

    • OURO: Ouroboros — The native token of the Ouronet Virtual Blockchain.

    • WKDA: Wrapped Kadena — A wrapped version of Kadena used in the Ouronet ecosystem.

3. LP Identifier

The final part of the LP Token’s name follows the format:

LP-xxxxxxxxxxxx, where xxxxxxxxxxxx represents the last 12 characters of the block hash from the block that included the transaction for the LP Token's issuance.

  • LP-98c486052a51: In this example, the LP identifier contains the last 12 characters of the block hash from the block that included the LP Token creation transaction. This provides a unique identifier for the LP Token, ensuring on-chain traceability and verification of its origin.

Example:

LP Token Example: W|LKDA-OURO-WKDA|LP-98c486052a51

  • Type Prefix: W This indicates that the LP Token belongs to a Weighted Constant Product SWP Pair, where asset weights can be customized, such as a 60/20/20 ratio between the assets.

  • Token Composition: LKDA-OURO-WKDA These are the tokens in the pool:

    • LKDA: Liquid Kadena

    • OURO: Ouroboros

    • WKDA: Wrapped Kadena

  • LP Identifier: LP-98c486052a51 The LP- prefix signifies that this is a Liquidity Provider Token. The string 98c486052a51 represents the last 12 characters of the block hash from the block in which this LP Token was issued, providing a unique traceable reference to its creation.

Summary

The naming structure of LP Tokens is designed to provide clear, transparent, and traceable information about the type of liquidity pool, the assets involved, and the exact point of issuance on the blockchain. By adhering to this naming convention, LP Tokens enable seamless tracking, integration, and verification of liquidity contributions within the ecosystem.

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