Quanto Liquidity Provider (QLP)
The Quanto Liquidity Provider (QLP) is the core liquidity engine powering trading on Quanto.trade.
Overview
The Quanto Liquidity Provider (QLP) is the core liquidity engine powering trading on Quanto.trade. It operates as the primary market maker in the platform’s order books, enabling frictionless trading experiences and providing deep, consistent liquidity across all listed pairs.
The QLP’s estimated and average APY ranges from 50-300% paid out in $QTO.
Core Functionality
The QLP places passive limit orders in Quanto’s order books. When a user executes a trade that matches with one of these orders, the QLP takes the other side of the position.
Example:
If a user market buys 1 BTC, and that order matches a limit sell order placed by the QLP, the following occurs:
The user holds a 1 BTC long position.
The QLP holds a 1 BTC short position.
This mechanism ensures that users can trade with minimal slippage and instant execution, even during periods of low organic order flow.
Funding Fee Model
In exchange for taking directional risk, the QLP earns funding fees from users who hold open positions against it.
Funding fees are charged hourly, based on:
The notional size of the open position.
The prevailing funding rate for that trading pair.
These fees serve as the primary revenue mechanism for QLP stakers and help balance long/short exposure on the platform.
Staking into QLP
Anyone can participate in the QLP by staking supported assets as collateral. All staked capital is pooled and used to back QLP trading activity, with each asset maintaining its own Loan-to-Value (LTV) ratio.
Staking $QTO into the QLP provides an additional benefit: users receive $QLP tokens at a 1:1 ratio. These tokens can be used as collateral on Quanto Perpetuals, allowing users to continue trading with their QTO holdings, while simultaneously earning QLP yield, paid out in $QTO.
In contrast, staking non-QTO assets (e.g., $ETH) into the QLP does not grant $QLP tokens that as aforementioned can be used as collateral on the exchange. Users that stake non-QTO assets are still eligible for QLP yield (in $QTO). Furthermore, any principal is at risk—if the QLP incurs losses, part or all of their deposited non-QTO collateral may be lost. As aforementioned, rewards are always distributed in $QTO, not in the originally deposited asset.
Note: The QLP uses active trading strategies that carry risk. Returns are not guarenteed, and you may lose some or all of your deposited funds. There is no compensation for possible losses incurred.
Key Mechanics
All stakers earn a share of the QLP’s PnL and funding fees, proportional to their contribution.
Supported collateral assets maintain their Loan-to-Value (LTV) ratios when used for staking.
The staked value is calculated as: Staked Value = Deposit Amount × LTV of Asset
Example:
ETH has a 90% LTV.
A $10 deposit of ETH will be counted as $9 of staked value.
If the QLP has a total of $90 TVL, and you deposit $10 ETH (valued at $9), the new QLP TVL becomes $99, and you own ~9.09% of the pool.
You will receive 9.09% of the profits, losses, and funding fees generated by the QLP.
Operational Details
Supported Collateral: Selected assets can be staked.
Flexibility: Deposits and withdrawals are processed on an hourly basis.
No Fees: There are no fees for staking or unstaking assets.
Live Position Transparency:
You can view real-time QLP positions [here].
Stake or manage your positions [here].