Short Liquidity Providing Tokens

sLP Tokens (Short Liquidity Providing Tokens)

Users can short a zAsset by providing collateral to a mint contract. When a short position is created, a unique sLP token is minted for each zAsset, which is immediately staked without passing it to the user. The amount of sLP tokens minted is directly proportional to the amount of zAsset minted at CDP. The sLP Tokens are non-transferable and non-tradable. You can receive the price premium based on the difference between the price on DEX and the real-world price.

Staking Rewards

The reward, $R_{k}$for a specific staking pool corresponding to the asset $k$ with weight $w_k$ and total sLP staking reward amount $m$, is given by:

$$R_{k}=\frac{w_{k}}{\sum_{i=1}^n{w_{i}}}m$$

The reward for LP NFT staking, based on the current short reward ratio$r_{s}$ is:

$$(1-r_s)\frac{w_{k}}{\sum_{i=1}^n{w_{i}}}m$$

The reward for sLP staking, based on the current short reward ratio$r_{s}$ is:

$$r_s\frac{w_{k}}{\sum_{i=1}^n{w_{i}}}m$$

A user will receive the portion of rewards for their pool equivalent to their proportional share of staked LP NFT and sLP for that pool.