💹Tokenomics

📌 Dual-Token Model

▪️ LION - LionDEX’s revenue and governance token. ▪️ LP - Accrual fee and liquidity certificate token based on PvP-AMM protocol.

🔸 LION

📌 LION is the governance token of LionDEX with a limited supply of 1,000,000,000 tokens, 50% of which are rewarded to contributors through protocol growth incentives.

📌 LION Distribution:

📌 LION’s IDO price and initial liquidity price are both $0.02; 📌 The total allocation for the IDO is 100,000,000 tokens, consisting of 34,000,000 LION and 66,000,000 esLION (for more information, please refer to the documentation released at the time of the IDO launch). 📌 LionDEX Genesis NFTs can be minted publicly and via whitelists through Launchpad (please refer to LionDEX Explorers Club & NFTs); 📌 The protocol growth incentives are awarded in batches to contributors according to different criteria for each phase, including traders, LP stakers (liquidity providers), Genesis NFT holders, and more. 📌 Developer funds and marketing consultant fees will be released linearly over 24 months; airdrops will also be released in batches for different activities.

🔸 LP

📌 LP is an intermediary token used in the PvP-AMM protocol. LP can be minted with USDC/BTC/ETH to be used as margin for perpetual futures trading or to obtain the protocol’s revenue by providing liquidity for the market. Among them, PvP-AMM protocol utilizes LP to calculate and reflect the overall PnL in trade orders as well as the revenue and claims of the insurance.

📌 The following are all circulation scenarios of LP: 👇

1. The user buys LP at the current price (mints LP), where USDC/BTC/ETH that is paid will be deposited to the Protocol Treasury.

2. The user sells LP at the current price (burns LP) and redeem USDC/BTC/ETH from the Protocol Treasury.

3. After purchasing (minting), the tokens can be staked in Staking Earn, please refer to "Earn" for more details.

4. The LP that is utilized as initial margin for perpetual futures trading will undergo output changes based on: ▪️ The assets that are deposited in the Protocol Treasury ▪️ When a profit is made, the initial margin (LP) will be redeemed and new LP reflecting the profit amount will be minted. ▪️ When a loss is made, the portion of LP reflecting the loss amount will be burned from the initial margin, whereas the remaining will be redeemed.

5. When LP is used as a medium to buy a stop-loss insurance premium, the output changes will be based on the revenue and claims: ▪️ When a premium is purchased, all LP that is used for the purchase will be burned; ▪️ When a claim is triggered, new LP reflecting the claim amount will be minted.

📌 The PvP-AMM protocol enhances capital utilization, liquidity income, and provides real position income for traders through the establishment of a Composite Vault on GLP. For more information, please refer to "PvP-AMM Protocol -> LP Composite Vault."

📌 The initial price for the LP Token is 1:1 GLP. Unlike traditional DeFi-AMM tokens, its price is not affected by a single purchase (minting), but is calculated according to the above scenario using the following formula:

👉 LP Price (USDC) = Total GLP quantity in the Protocol Treasury / (Total current circulating LP quantity + Total LP quantity with floating PnL from user positions + Total LP quantity to be compensated for insurance orders) * Current GLP price.

👨‍🏫 Note:

▪️ Although this is not investment advice, the functions of LION resemble conventional governance and DeFi tokens, and as such LP, price may be exposed to higher volatility. In contrast, LP has more use cases and may tend to be more stable or extremely low in volatility in the long term (similar to GMX and GLP).