Protocol-owned Liquidity

TLX accumulates protocol-owned liquidity through bonding

The TLX DAO accumulates protocol-owned liquidity (POL) every time a user bonds leveraged tokens in exchange for $stTLX tokens. This liquidity, while initially being acquired in the form of leveraged tokens, undergoes a weekly rebalance whereby newly acquired POL gets allocated to the wstETH/ETH1S Velodrome pool and the TLX/ETH Velodrome pool. Please note that during each rebalance a small amount of sUSD may be reserved in order to seed liquidity for new leveraged tokens.

Changes to POL allocations can be made via governance and is currently being allocated according to the following allocation split:

• 35% wstETH/ETH1S

• 65% TLX/ETH