Orbiter
Orbiter: LP Token Shares and Pool Earnings
Orbiter Finance's liquidity pools let depositors participate in trading-fee income through liquidity provider (LP) tokens. A position's share of the same pool's total LP token supply determines its share of collected fees, while redemption value depends on current net asset value and withdrawals cannot exceed available liquidity.
- Position Record
- LP tokens issued for deposits and burned when liquidity is removed.
- Deposit Capacity
- A deposit fails if it would take total pool liquidity above the pool's cap.
- Pool State
- A paused pool temporarily prevents operations.
LP Tokens and Underlying Assets
LP tokens represent a position in a particular pool. Depositors receive them according to current net asset value, so an LP token count alone does not specify the quantity of underlying assets it represents.
Trading-fee earnings accumulate automatically in the pool and are reflected through the LP tokens. Asset prices and net asset value can fluctuate, and frequent operations may lead to losses.
Fee Allocation by Pool Share
Fee earnings = (provider LP token balance / total LP token supply in the pool) * pool trading fees collected
The fee total belongs to that pool over the relevant accounting period. Protocol-wide bridge volume is a different measurement. Applying one fixed share to the entire period assumes the provider's fraction of LP supply remains unchanged throughout it.
A Hypothetical ETH Pool Fee Share
How much fee income would a position represent over a period with a fixed LP share? All inputs here are hypothetical: provider LP balance: 173 LP tokens; total pool LP supply: 6 920 LP tokens; trading fees collected during the period: 8.43 ETH. Assume the provider's balance and total supply remain fixed throughout that period.
(173 / 6920) * 8.43 = 0.21075 ETH
. The position represents 2.5% of LP supply, so its share of those trading fees is 0.21075 ETH.
This is fee income reflected in the pool position. The full position remains valued at current net asset value, and redemption remains limited by available liquidity. A larger total LP supply would reduce the fee share if the provider's balance and the collected fee total stayed unchanged.
Redemption Value and Withdrawal Capacity
A successful removal burns LP tokens and returns assets based on current net asset value. The Liquidity Pool guide distinguishes funds borrowed out of the pool from idle funds and caps removals at available liquidity. A position's net asset value therefore does not by itself establish how much can be withdrawn at once.
ERC-20 pool operations may require approval for the contract to access the tokens. Missing approval, an invalid signature or insufficient gas can prevent an operation.
The Liquidity Pool guide lists cross-chain withdrawals separately as a planned feature under "Coming Soon". Its standard removal description does not establish an enabled withdrawal to another chain.
APR and APY Interpretation
The Liquidity Pool guide models APR as a linear movement between a pool's minimum and maximum APR as utilization increases. These pool-specific inputs determine the rate; the model supplies no universal APR.
APY incorporates compounding and depends on the assumed number of compounding periods per year. These annualized figures cannot replace the pool's actual trading-fee total when calculating fee earnings for a particular period.