LSU Pool Overview

Put your liquid staking resources to work

The LSU Pool

The LSU Pool provides multiple ways to put your LSU tokens to work:

Instantly move stake between validators (swap one LSU for another)
Facilitates Instant Unstaking from a validator
Potential for additional yield to LSU Pool liquidity providers from fees earned
Mints the LSULP pool ownership token

The LSU Pool is a multi-token pool that exclusively holds LSU tokens.

The Pool does not hold XRD or any non-LSU token. Airdrops to the Pool will be rejected.

In this overview we will walk through the landing page UI.

Liquidity Section

The liquidity section allows you to:

Add / Remove Liquidity to the Pool
Swap LSUs (ie switch validators)
See your liquidity position

Adding, removing and swapping liquidity are detailed in later sections of these docs.

Looking at My Liquidity, we see the following:

Token position (here 9,993.86)

This is the number of LSULP tokens you hold from adding liquidity to the Pool (or from buying directly on a DEX or other dApp). It represents your Pool stake.

NAV (7 days waiting period, here 10,084.83 XRD)

This is the value of your Pool stake. It is equivalent to: LSULP tokens * LSULP Price

(here 9993.86 * 1.00910224 = 10,084.83)

If you remove all your liquidity from the Pool, you will receive this value worth of LSUs.

You could then unstake them from your validator(s) in the usual manner.

Market Value (here 9,992.40 XRD)

This is the indicative value of your LSULP tokens if you were to sell them directly for XRD via the aggregator rather than via unstaking.

This is likely to be less than the NAV value above since it represents the price for immediate liquidity in your liquid staking tokens.

Stats and Graphs

The LSU Pool page shows various information about the state of the Pool.

Total Value Locked (TVL)

This is the current value of the Pool. It represents the total value of all the LSUs it contains. The LSUs in the pool are priced in XRD but we display the indicative $ value here for convenience.

Pool Price (NAV)

This represents the price in XRD per LSULP token. If you were to remove liquidity by 1 LSULP token, then you would get back an amount of LSU tokens equivalent to this XRD amount (before any fees).

This price is useful to compare directly against validator LSUs. At the time of writing these docs, the Pool price is 1.0091 whereas the best performing validator LSU price is 1.0085 demonstrating the outperformance of the Pool (due to fees it earns).

Pool Trading Volume

Shows the volume of trades ($ equivalent) in the Pool that generated fees. The text shows the total over the last 7 days, the graph shows the last 24 hours.

Pool APY (Annual percentage yield)

This shows the historic (backward looking) equivalent yield from staking to the Pool. It represents the growth of the Price (NAV) over the last 7 days transformed into an equivalent annual return.

The Pool APY includes both LSU yield (validator emissions) and fees earned by the Pool.

If there was no fee income from economic activity, the Pool APY would be similar to that of the portfolio of LSUs alone.

Pool APY is a historical value and is no guarantee of future return

Pool Liquidity Composition

The liquidity view further shows the breakdown of LSUs in the Pool, ranked by value.

This is useful to get an idea of the available liquidity for swapping LSUs or removing liquidity.

Curation

CaviarNine (and in future the FLOOP DAO) has the ability to determine which LSUs are eligible for the Pool. Validators with very high fees or poor uptimes could have associated LSUs with low yield which could cause a drag on the returns of the Pool.

Consequently, adding liquidity and swapping these LSU tokens is not permitted in LSU Pool. See the section on Adding Liquidity for more detail.