Depositing & Withdrawing: Core Pools & Coves

Depositing into Core Pools & Coves

The only requirement for providing liquidity on Clipper is that your wallet is not on the OFAC list. To deposit, simply connect your wallet and follow the on-screen prompts.

Clipper LP Tokens

Upon deposit, you will receive LP tokens (called either CLIPPERLP or CLPDRPL, depending on the chain). These tokens represent your fractional ownership of the underlying pool and have no value other than this representation. Their purpose is to enable Clipper to normalize each LP’s deposits and withdrawal amounts by calculating their pool ownership value per token. Hold on to your LP tokens, you will need them for withdrawal.

The rewards you collect as an LP will be added to the overall value of your deposit and can be withdrawn at the same time as your principal.

Withdrawing LP Deposits & Rewards

Clipper is a non-custodial mechanism. Even if the Clipper web page goes down, unlocking and burning LP tokens to withdraw assets are operations that are always available by directly interacting with the smart contracts on the blockchain.

Core Pools

To withdraw, you must redeem (burn) your LP tokens. You will have the option to withdraw either a single asset or a pro rata share of all tokens in the multi-asset pool.

If you choose the second option, the relative composition of tokens is determined by each asset’s external market prices, which Clipper uses to calculate the value per token for the pool. This is done by taking the value of the assets at those external market prices and dividing that value by the total number of tokens in the pool.

Coves

When withdrawing from a Cove, 50% of your withdrawal will be the underlying Cove Asset and 50% will be LP tokens.