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Espresso Ex
  • ☕Introduction to Espresso Ex
  • 💻Mechanisms
  • ☢️Oracles
  • 💧Liquidity
    • EXLP Token
    • Buy / Sell EXLP
    • Pool Design
    • Adding/ Removing Liquidity
  • 📈Trading
  • 📄Fees
    • Trading Fees
    • Liquidation Policy
    • Fees Allocation
    • Income & Rewards Distribution Time
  • 🎆Tokenconomy-$COF
    • Supply
    • Locked-Staking
    • Utility
    • Token Allocation
  • Roadmap
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  1. Liquidity

Buy / Sell EXLP

At Espresso Ex, each order to buy or sell its native LP tokens, designated as EXLP, undergoes a mandatory waiting period, which is currently set at 15 minutes before the order is executed. This delay is integral to the system for two primary reasons:

First, it acts as a safeguard against arbitrage strategies that could potentially disadvantage the liquidity providers. Given that the EXLP pool contains a diverse array of assets and permits purchases with any supported asset types, the interval is crucial to mitigate the risk of arbitrage by those looking to exploit swift transaction opportunities across different assets.

Second, the waiting time allows Espresso Ex to accurately compute the comprehensive liquidity across multiple networks. The Espresso Ex protocol accommodates varying network speeds and transaction finalization times in its liquidity calculations. This buffer period is therefore essential to ensure that the liquidity is correctly quantified and that EXLP tokens are fairly distributed to buyers and sellers, preserving the integrity of transactions and the protocol's market stability.

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Last updated 1 year ago

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