ALP-Mantissa

Background

The Mantissa mode, a part of the Allspark ecosystem, operates with its own liquidity pool known as the ALP-M pool. Traders engage with the ALP-M pool through the Allspark protocol to facilitate their trades. Currently, the ALP-M pool is ETH-centric, with plans to incorporate yield-bearing assets in the future. Providers of liquidity to the ALP-M pool should be aware of the associated risks.

ALP-M Profit and Risk

ALP-M Profit Sources

1. Penalty Fees: Liquidity providers earn the penalties imposed on traders who fail to maintain their positions adequately.

2. Incentive Payments: Providers may receive payments in the form of incentives to encourage participation in the pool.

3. Zklink Rewards: Future token airdrops and rewards from Zklink for contributing to the ecosystem.

4. Blast Rewards: Future token airdrops and rewards from Blast for supporting their platform.

5. Allspark Rewards: Future token airdrops and rewards from Allspark for being an active participant in the liquidity pool.

ALP-M Risks

1. Counterparty Risk: As the ALP-M pool acts as a counterparty to Mantissa traders, it holds positions that are subject to market risks and may incur losses.

2. Asset Price Fluctuation: The value of pooled assets may decrease, leading to a reduction in the pool's overall value.

3. Smart Contract Risk: Despite efforts to mitigate risks through testing, auditing, and bug bounty programs, there is always a risk of vulnerabilities in the smart contract code that could be exploited.