🪙Vault's LP Tokens

How do LP tokens work in fund's accounting

Each Vault that is deployed on Aspis has its own technical token representing ownership in the fund's treasury and giving voting rights to its holders. This token is a technical token and can not be minted by anyone out of the thin air and can only be obtained through depositing tokens into the fund. This token is similar to the "bank's receipt", serving as proof that the user deposited a certain amount of liquidity in a particular fund. You can think of it as a sort of IOU coupon.

Similar to Uniswap LP tokens, which are unique to each trading pair, each fund of Aspis has its own Liquidity Token. We strongly recommend our Vaults' creators keep prefix "LP_" in the name of its Vault's tokens.

Vault's LP tokens on Aspis are getting minted on the user's deposit.

An investor can burn LP tokens to get his share of assets that are currently stored on a funds balance according to the share of LP tokens that is burned to the outstanding amount of LP tokens that are issued and currently in circulation.