EXLP Token

Espresso Ex's liquidity framework is designed with individuality at its core; each liquidity pool is represented by its unique LP tokens(EXLP), which conform to the ERC-20 standard, marking contribution and ownership within that specific pool. Echoing the versatility of its pools, Espresso Ex differentiates between pools catering to the same trading pair by offering them with distinctive LP tokens, each corresponding to the pool's fee structure.

The value of LP tokens for any given pool on Espresso Ex is initialized at unity. As trading ensues, not only are the accrued fees for liquidity providers funneled back into the pool, but all financial outcomes – from gains to losses incurred in fulfilling the trader's opposite positions – are also reflected in the pool's value. This system ensures that liquidity providers receive a transparent and proportional share of the pool's performance, encapsulated in the value of their LP tokens.