💱handle Liquidity Pool (hLP)

the handle liquidity pool (hLP) comprises a basket of currency* assets, that

(i) provide the liquidity for protocol users to borrow for leveraged trades, (ii) acts as counterparty to all trades, absorbs any trader wins or losses, and (iii) provides liquidity for any cross asset spot FX swaps. liquidity capital providers to the hLP can deposit any approved asset into the pool and will receive hLP which is automatically staked in order to earn fees.

fees to deposit into the hLP will vary dependent on the balance of assets in the index. the current fees can be found on the convert page when converting to hLP. hLP holders earn a share of trade and funding related fees, swap fees, and returns from any trader losses and liquidations

additionally, based on a users veFOREX balance, they may also receive boosted pool rewards and APYs

all fees and rewards related to hLP are distributed in the protocol token FOREX

current target weights

hLP target weights

approved asset	target weight
ETH	5.0%
🇺🇸 fxUSD	47.5%
🇪🇺 fxEUR	27.0%
🇯🇵 fxJPY	2.0%
🇬🇧 fxGBP	6.0%
🇨🇦 fxCAD	4.0%
🇦🇺 fxAUD	2.0%
🇨🇳 fxCNY	2.0%
🇨🇭 fxCHF	1.5%
🇸🇬 fxSGD	1.0%
🇰🇷 fxKRW	1.0%
🇵🇭 fxPHP	1.0%

*5% of the basket is currently ETH, which facilitates a whole range of range swaps and protocol related route optimisations.

holders of hLP own a potentially high yielding, global currency near neutral FX exposure asset. (not withstanding pool specific risks)

pool composition aims to create an asset such that a user is neither LONG nor SHORT USD, instead owning exposure to a basket of global currencies - approximating 50% USD and 50% the US Dollar INDEX (DXY)

how to view current & target composition and utilisation

1. go to app.handle.fi/convert
2. select hLP as 'from' or 'to' token

3. select "hLP breakdown"

to find out how to add liquidity to hLP click here