OLP operated by Ostium is a joint funding pool that supports the trading market.
The basic structure is simple: it plays the role of providing liquidity on the opposite side whenever a trader opens or closes a position. In other words, if someone takes a long position, the OLP stands on the opposite side to create the market.
For the Ostium platform to operate normally, this funding pool is essential. Without sufficient liquidity, traders find it difficult to open positions.
The profit and loss structure is determined by various factors—trading fees, the profitability of positions, market volatility, and more. From the LP's perspective, they understand this mechanism and take on risks in exchange for earning profits.
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ApeWithAPlan
· 16h ago
OLP is just a betting mechanism. LPs here are basically going against traders, and who profits and who loses can flip around... This thing is extremely risky, and you need to truly understand it before daring to get involved.
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BtcDailyResearcher
· 16h ago
I'm a bit confused. OLP is just a market-making mechanism, right? LPs put in money and wait to profit from traders' losses? It seems like the risk is still pretty high...
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GateUser-c799715c
· 17h ago
Well... to put it simply, OLP is just betting against traders. When they make money, we lose. You need to think carefully about the risks.
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ForkYouPayMe
· 17h ago
To put it simply, it's basically LP being forced to bet against all traders, with the outcome entirely dependent on the market's mood.
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WhaleMinion
· 17h ago
Honestly, the OLP logic is basically a gamble, with LP taking the opposite position of traders... The risk is just too high.
# Understanding the OLP Mechanism at a Glance
OLP operated by Ostium is a joint funding pool that supports the trading market.
The basic structure is simple: it plays the role of providing liquidity on the opposite side whenever a trader opens or closes a position. In other words, if someone takes a long position, the OLP stands on the opposite side to create the market.
For the Ostium platform to operate normally, this funding pool is essential. Without sufficient liquidity, traders find it difficult to open positions.
The profit and loss structure is determined by various factors—trading fees, the profitability of positions, market volatility, and more. From the LP's perspective, they understand this mechanism and take on risks in exchange for earning profits.