SLP Vault

Q: Are the returns from the mainnet SLP Vault real? What is their source?

• A: Yes, the mainnet SLP returns are real, but they also carry real risks. Returns primarily come from three sources:

1. A share of all trading fees generated on the SoDEX platform.
2. Profits or losses generated by the Vault's Automated Market Maker (AMM) strategy.
3. Profits or losses incurred as the counterparty to liquidated positions (taking over margin-called positions).
    

Q: Is there a real risk of loss when depositing into the SLP Vault?

• A: Yes, there is a risk of loss. Since the asset pool participates in market making and liquidation position takeover, these activities inherently carry risk. If market volatility intensifies, losses from market-making strategies or sustained losses from taken-over positions may cause the total value of the asset pool to decline.

 

Q: What is the SLP Vault? Is it wealth management or staking?

• A: You can think of it as a community-shared “liquidity pool.” The SLP Vault aims to support a diverse range of mainstream assets. During the initial mainnet launch or subsequent updates, we will prioritize enabling USDC deposits. Following that, we plan to progressively support core assets like BTC and ETH based on priority. As a liquidity provider (LP) on the platform, your returns are directly tied to the platform's overall trading performance (fees, market-making strategy gains/losses, etc.). Unlike fixed-income investments, its value fluctuates with market activity.
   

Q: What's the difference between MAG7.ssi and sMAG7.ssi?

• A: MAG7.ssi is the underlying asset, while sMAG7.ssi is the “certificate token” you receive after depositing into the SLP asset vault, representing your share in the pool. Depositing MAG7.ssi automatically stakes it as sMAG7.ssi. Upon withdrawal, you may choose to immediately retrieve sMAG7.ssi or redeem it back to MAG7.ssi through a 14-day unlocking period.