# ZLP

### What is ZLP?

ZLP is ZO's liquidity provider token, representing your share of ZO's liquidity pool. When you buy ZLP, it means you are staking your asset in our pool as liquidity used for leveraged trading. You can provide different kinds of assets to the ZO Perpetuals Liquidity Pool: SUI, DEEP and USDC and more.

### What’s the tokenomics?

ZLP is a LP token ([Liquidity Provider Tokens (LP Tokens) Definition](https://coinmarketcap.com/academy/glossary/liquidity-provider-tokens-lp-tokens)). ZLP's total value represents how much liquidity we have in the pool. Since ZLP is always backed by asset you minted ZLP with, it’s not an inflationary coin. While more supplies can be added to ZLP, more assets are added into the pool, keep the price unchanged.

In addition, ZLP holders will be sharing fees charged for the use of ZO agents, allowing liquidity providers to earn potentially higher APY from holding ZLP.

### What’s the benefit of minting ZLP?

In short, with ZLP you can earn passive income from the protocol. Some other incentive features are being implemented as we speak.

### When will the mint open?

ZLP mint will open in March, 2025.

### What are the risks associated with ZLP token?

Risks associated with Liquidity Provider (LP) tokens:

1. **Market and Liquidity Risks**:
   * Prices of assets in the pool can swing, causing losses (impermanent loss) or making it hard to withdraw funds.
2. **Smart Contract and Platform Risks**:
   * Bugs, hacks, or platform failures could lead to loss of funds, even on trusted platforms.
3. **Trading PnL Risks**:
   * High leverage in perpetual trading can amplify losses when trader wins from trades.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.zofinance.io/liquidity-providers/zlp.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.