# $ZKLP

### **Overview**

The $ZKLP token represents asset indices used for Swap and leveraged trading on the platform. Users can add USDC, USDT, and DAI to the liquidity pool (LP) to mint $ZKLP. Whenever users remove any index assets from the LP, $ZKLP tokens will be destroyed.

### **$ZKLP Fees and Profit**

$ZKLP accumulates 70% of the fees generated by the platform in the form of stablecoins. As liquidity providers, $ZKLP holders profit when leveraged traders incur losses. In contrast, if leveraged traders make profitable trades, $ZKLP holders may experience losses.

### **$ZKLP Rebalance**

The cost associated with minting or redeeming $ZKLP tokens varies depending on the protocol's requirements at the time. For instance, if the USDC proportion in the index is high and the DAI proportion is low, increasing the amount of USDC in the index will result in higher fees, while decreasing the USDC amount will incur lower fees. The $ZKLP token weight can be viewed on the dashboard.


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