📡ZLP Overview

The ZO Liquidity Provider (ZLP) Pool is a liquidity pool that acts as the counterparty to traders on the ZO Perpetuals exchange. Traders borrow tokens from the pool to open leveraged positions on the platform.

The ZLP token derives its value from:

• An index of major assets (e.g., SUI, DEEP, USDC)

• Trader profit and loss (PnL)

• 75% of the generated fees from:

  • Opening and closing trades

  • Mint and redeem ZLP

• Agent Usage Fees

• Reserving Fees

• Funding Fees

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ZO Liquidity Providers (ZLPs)

ZLPs are essential participants in the ZO trading ecosystem. They provide the liquidity that enables perpetual traders to execute leveraged positions.

Liquidity providers:

• Enable sufficient liquidity for the platform

• Share in the majority of trading fee revenue

• Help support a stable and deep trading environment

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How to Become a Liquidity Provider (LP)

Anyone can become a Liquidity Provider by contributing assets to the ZLP Pool.

• ZLP tokens represent your share of the pool.

• Supported assets on ZO Perps can be used to mint ZLP.

• Entry/exit fees may apply based on pool utilization and asset weight (see Target Ratio and Fees).

👉 Tip: The easiest way to mint or redeem ZLP is via ZO Mint page.

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Advantages of the ZLP System

The ZLP system is designed to be simple and efficient for passive income generation:

• ✅ No staking or harvesting required – yield auto-compounds into ZLP token price

• 📈 AMM pools can support secondary market trading of ZLP

ℹ️ ZLP is the liquidity token for ZO Perps. Governance features may be handled by a separate ZO governance token.

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Rewards and Earnings

The APY of ZLP is calculated based on 75% of all fees generated from ZO perpetual trading activity (excluding asset price changes and trader PnL).

• Fees are distributed back to the pool on an hourly basis.

• Yield is reflected in the increasing virtual price of ZLP.

Learn more in How ZLP Works.

ZLP UI Walkthrough

Section	Description
Mint Tab	Deposit tokens to the ZLP pool to start earning passive fees
APY	Displays current estimated yield from holding ZLP
Pool	Mint, redeem, or swap into and out of ZLP
Total Value Locked (TVL)	Shows current pool value based on real-time token prices
Token Selector	Choose tokens to deposit or receive
Token List	Displays all assets held by the pool
Pool Size	Current balance of each token (includes collateral from open positions)
Current / Target Weight	Compare actual vs. target pool composition
Utilization	Indicates how much of the pool is being used by traders
Fees and Estimations	Shows expected ZLP received and any associated fees
ZLP Price & Supply	Displays virtual price (TVL ÷ supply) and total ZLP token supply

Learn more in How ZLP Works.