Debt market & Debt Redemption

The liquidity debt model allows the liquidity pool to issue debt when the liquidity safety factor is crossed.

Step 1: debt trigger

When the liquidity pool takes a loss of over 50%, closing and adding liquidity will trigger debt issuance.

Users receive partial profit and debt token when closing positions.

LP receives partial LP token and debt token when adding liquidity.

Step 2: Debt redemption

When liquidity pool recovers in profitability, debt token holders can redeem pool token.

Redeem debt on the "My Debt" page

Redeem debt during removing liquidity