Meridian
  • Welcome To Meridian
    • Meridian Mint
    • Meridian Trade
    • Meridian Lend
    • Meridian Swap
  • Getting Started - Networks
    • Base Network
    • Fuse Network
    • Meter Network
    • Telos Network
    • Taiko Network
    • Taraxa Network
  • Earning with Meridian
    • Stability Pool Staking
    • MLP Liquidity Pool
      • Buying & Selling MLP
      • MLP Rebalancing
    • Lending
  • The $MST Token
    • Staking Rewards
    • $MST Buybacks
    • Parterships
    • Tokenomics
    • Meridian Loyalty Staking Points
    • Get MST Tokens
  • Protocol Economics
    • Liquidity Growth for Ecosystems
    • User Growth Startegy
  • USDM - Meridian Mint
    • Borrowing
    • Stability Pool & Liquidations
    • Redemptions & USDM Price Stability
    • Recovery Mode
  • Trading - Meridian Trade
    • Trading Principles
    • Step by Step Trading
      • Limit Orders
      • Managing Positions
      • Closing Positions
    • Fees & Costs
    • Liquidations
    • MLP
    • Zero-Slippage Swaps
    • Referrals
  • Lending - Meridian Lend
    • Depositing
    • Borrowing
    • Liquidations
    • Risk Management
    • Lending and Borrowing Incentives
  • Swaps - Meridian Swaps
    • Step by Step Swaps
    • Liquidity
    • Farming
      • Get Started
    • Voting
      • Get Started
    • Token Whitelisting
    • Farm Listing & Incentives
  • Integrations
  • Roadmap
  • Resources
    • Community Resources
    • Technical & Security
      • Oracles
        • Pyth
        • DIA
        • Chainlink
        • Supra
        • Stork
      • USDM Technical Overview
      • Trading Technical Overview
      • USDM Contracts
        • Telos Network
        • Fuse Network
        • Base Network
        • Taraxa Network
        • Artela
      • Lending Contracts
        • Telos Network
        • Taiko Network
        • Meter Network
        • Fuse Network
        • Taraxa Network
        • Artela Network
      • Trading Contracts
        • Meter Network
        • Base Network
        • Taraxa Network
        • Telos Network
      • Swap Contracts
        • Telos Network
      • Staking & Rewards Contracts
        • Telos Network
        • Fuse Network
        • Meter Network
        • Taiko Network
      • MST Contracts
      • Liquidity Pool Addresses
    • FAQs
      • USDM FAQs
    • Glossary
      • Trading Glossary
      • Lending Glossary
      • Swaps Glossary
    • Brand Assets
    • Legal
      • Privacy Policy
      • Terms of Use
    • Contact
Powered by GitBook
On this page
  • MLP Target Asset Allocation
  • MLP Utilization
  1. Trading - Meridian Trade

MLP

PreviousLiquidationsNextZero-Slippage Swaps

Last updated 8 months ago

The Meridian Liquidity Pool is the multi-asset liquidity pool for both zero slippage swaps and leveraged trading. The MLP token is the Meridian liquidity provider token and can be minted using any of the tokens within the liquidity pool. In return for providing this liquidity MLP holders receive a proportion of the earned by Meridian Trade.

The MLP token price is determined by the total value of all tokens within the pool after factoring in the profits and losses for all currently

MLP Target Asset Allocation

The target asset allocation within the pool is

  • 55% ETH

  • 35% USDC

  • 10% USDM

The MLP asset ratios are dynamically managed by the protocol to ensure that sufficient liquidity is maintained. This is achieved by adjusting the fees paid by users for swapping, depositing and withdrawing assets. Transactions that improve the allocation ratios will have lower fees than transactions that have a detrimental impact on the ratios.

MLP Utilization

Maximum Asset Utilisation

Users can open a long position by depositing an amount of the trade token as collateral. A snapshot USD value of this collateral is taken when the position is opened. To ensure the MLP has sufficient funds to pay out any profits, an amount of the traded token equivalent to the position’s size (collateral x leverage) is marked as reserved. In order to maintain ongoing liquidity each asset within the MLP has a maximum utilisation rate of 60%. This ensures that, at any given time, for any token, a maximum of 60% of the MLP balance can be reserved.

Maximum Global Short Sizes

Similarly, users can open a short position by depositing an amount of stablecoin as collateral. When a short position is opened an amount of stablecoin equal to the position size (collateral x leverage) is marked as reserved to pay for any profits on the position. The maximum value of stablecoins that can be reserved at any given time is set to 40%. This limits the total value of short positions that can be placed on OmniTrade and protects the MLP liquidity.

fees
Launch Meridian App
opened positions