What is Resolv Liquidity Provider Token?

Resolv Liquidity Provider Token (RPL) is a Resolv protocol token representing a stake in a liquidity pool that assumes the risk of a delta-neutral strategy that provides stability to the USR stablecoin. It serves as a buffer between the strategy and stablecoin users, absorbing losses that arise from collateral fluctuations or exchange risks.

The profitability of RLP is generated by the funding rates of perpetual contracts, staking rewards from treasury assets and the risk premium that is paid to holders for providing insurance coverage. The level of token leverage automatically correlates with the pool volume: the lower the RLP, the higher the leverage and potential profitability.

The token can be issued through the deposit of liquid assets (USDC, USDT, ETH) and redeemed back into the same assets, provided there is a sufficient level of USR collateralization (over 110%). Its price is determined by the value of the underlying collateral (ETH/BTC).