Common LSU Pool Questions

Some plain English Q&As:

What tokens are in the LSU Pool?

LSU Pool holds only LSU tokens.

It does not hold XRD or other tokens

Does the LSU Pool receive airdrop tokens?

No. See above. The LSU Pool only contains LSU tokens.

What is the LSULP token for?

The LSULP token represents ownership of LSU Pool

If you own 10% of LSULP token supply then you own 10% of the LSU Pool contents

The LSU Pool says APY is eg 8.5% is that in addition to validator emissions?

No. The LSU Pool APY is the TOTAL annualised return (backwards looking).

It includes:

  • Validator emissions on the LSUs in the LSU Pool

  • Fees earned by the LSU Pool from swapping

What does the LSULP NAV mean? Why are there 2 prices for LSULP token?

The NAV (Net Asset Value) of the LSULP token represents its value in XRD.

NAV = XRD_value_of_LSU_Pool / Supply_of_LSULP_tokens

  • The NAV Price is what you get from removing liquidity

  • The Market Price is what you would get from selling LSULP on a DEX

Give me an example of the 2 LSULP 'Prices'

You own 1000 LSULP tokens.

The NAV Price is 1.02. The Market Price is 1.015

  • Market Price:

    • You SELL the LSULP tokens directly on a DEX and receive 1015 XRD

  • NAV Price:

    • You Remove Liquidity from LSU Pool

    • You receive 1020 XRD worth of LSU tokens

What is the Credit Receipt about?

The Credit Receipt records what type of LSU you deposited in the LSU Pool.

It allows you to remove liquidity in the same LSU free of charge (if there is enough supply).

Why can't I remove my original LSU tokens?

LSU Pool contains a mixture of different LSU tokens.

It is possible that your original LSU tokens have been replaced by other LSU tokens.

If you want to remove liquidity then you may have to remove in different LSUs.

That is a feature of LSU Pool.

People swap LSUs and that generates fees for the Pool. That also means your desired LSU might not be in sufficient supply.

Whichever LSUs you choose to withdraw, they will always be in your entitled XRD amount

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