ALP Tokens

By providing liquidity to the aiPX Protocol, liquidity providers receive ALP tokens, which passively earn AIPX tokens. Liquidity providers receive ALP tokens by providing a tranche's underlying asset such as ETH. ALP tokens also have a USD value associated with them. This means that if the price of the Senior ALP token is $1, then by depositing $1,000 USDC you would receive 1,000 Senior ALP tokens. When redeeming ALP tokens for an underlying asset, in this example, you would be able to withdraw $1,000 of ETH, even if you had deposited USDC.

There are three ALP tokens:

• Senior ALP token

• Mezzanine ALP token

• Junior ALP token

Each tier represents the lowest risk/return (Senior) to the highest risk/return (Junior) for liquidity providers.

At any time, ALP tokens may be converted into any of a tranche's underlying assets. A comprehensive overview of the functionality of ALP tokens and tranches can be found in the Risk Management for LPs section.

Risk Management for LPs