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Moby
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    • 🐋 About Moby
    • ⚡ Our Vision
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      • Fees & Instruments
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  • How it’s Built
    • 🚀 Synchronized Liquidity Engine (SLE)
    • 🧮 Options Pricing Model
      • Mark Price
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        • Implied Volatility
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        • Deriving Greeks
        • Risk Premium Calculation
        • Risk Managing Mechanism
    • 🤖 Architecture
      • Liquidity Provision Mechanism
      • Options Listing Standard
      • How to Open / Close / Settle Position
      • Synchronized Liquidity Engine (SLE)
      • Options Position Tokens
      • Tools to Maximize Capital Efficiency
    • ⚙️ Key Features
      • High Leverage & Limited Risk with No Liquidation
      • Narrow Spread with Dynamic Risk Premium
      • Guaranteed Settlement
      • Capital Efficiency Improvements with Combo Options
      • Even Higher Capital Efficiency with Clearing House
      • Abundant Liquidity for All Options
      • Composable Options for Structured Products
      • High Profitability for LPs
      • Real-Time Automatically Hedged OLP
      • Upcoming Features
    • ⛓ DeFi Options Vault
      • 🐻 Berachain DeFi Options Vault
        • 🔒 Architecture
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  • How it’s Driven
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  • Developers
    • Moby Traders API
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        • General
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      • Prerequisites
      • Open Positions
      • Close Positions
    • Interfaces & ABI
      • PositionManager.sol
      • SettleManager.sol
      • RewardRouterV2.sol
      • OptionsMarket.sol
    • Appendix 1: Parameters for Open/Close Options
    • Appendix 2: the Diff between optionId and optionTokenId
    • Appendix 3: Sample Moby Contract Module for Developers
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  1. How it’s Built
  2. 🤖 Architecture

Liquidity Provision Mechanism

Previous🤖 ArchitectureNextOptions Listing Standard

Last updated 4 months ago

  • LPs earn OLP tokens for adding liquidity to pools aligned with their risk preference

  • LPs receive a share of Moby's revenue in proportion to their liquidity contribution

  • OLP token distribution is based on the Asset Target Ratio (ATR) and the composition of each OLP

  • LPs must return their OLP tokens to withdraw capital, losing future revenue rights on Moby

  • Returned OLP tokens are immediately destroyed, and LPs are reimbursed with their original assets