ATLANTA, Jan. 30, 2023 /PRNewswire/ — COVOLP provides liquidity for leverage trading in the Covo Finance ecosystem. Covo Finance is a decentralized spot and perpetual exchange that enables direct trading of cryptocurrencies like Bitcoin, Ethereum, and Chainlink from crypto wallets with low fees and zero price-impact trades.
COVOLP holders benefit from the trading activity on the platform, earning a profit when leverage traders incur a loss and vice versa.
Minting and Redeeming COVOLP
Minting COVOLP can be done by bridging any of the COVOLP Pool-supported tokens to Polygon, with the ability to mint COVOLP using BTC, ETH, MATIC, USDC, DAI, LINK, and UNI.
To mint COVOLP, visit https://ift.tt/gIs1kaW and enter the amount of COVOLP to purchase. Fees for buying COVOLP vary based on the asset distribution of the index, which can be seen on the Buy COVOLP page. After purchasing, COVOLP tokens will be automatically staked and start earning rewards from Platform fees. Rewards earned on COVOLP can be checked in the dashboard.
Redeeming COVOLP is also straightforward. Visit the Redeem page and enter the amount of COVOLP to redeem. There is a minimum holding time of 15 minutes after minting before holders can redeem COVOLP tokens.
To get the lowest fees, check the “Save on Fees” section for the token with the lowest fees.
Rebalancing COVOLP
The fees for minting, burning, or swapping COVOLP will vary based on whether the action improves or reduces the balance of assets. For example, if the index has a large percentage of ETH and a small percentage of USDC, activities that increase the amount of ETH will have a high fee, while actions that reduce the amount of ETH will have a low fee.
Token weights are adjusted to hedge COVOLP holders based on traders’ open positions. If many traders are long on ETH, for example, ETH will have a higher token weight. If many traders are short, then stablecoins will have a higher token weight.
If token prices increase, COVOLP will also…
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