LP NFT & Ownership
EXNIHILO uses a single-LP model. Each pool has exactly one liquidity provider, identified by an LP NFT.
How it works
When a market is created via the Factory:
- An LP NFT is minted to the market creator
- The NFT is linked to the new pool via
poolOf(tokenId) - Initial liquidity (underlying tokens + USDC) is seeded into the pool
The LP NFT holder has exclusive authority over all LP operations.
LP rights
Whoever holds the LP NFT can:
- Add liquidity — deposit more tokens + USDC
- Withdraw liquidity — remove tokens + USDC when there is no open position (long or short)
- Claim fees — withdraw accumulated LP fees (3% of position opens)
- Set position caps — limit individual position sizes
- Force realize positions — settle any underwater open position
Transferring LP ownership
The LP NFT is a standard ERC-721 token. Transferring it transfers all LP rights immediately. The new owner can perform all LP operations on the pool.
This enables:
- Selling a profitable pool
- Delegating management to another wallet
- Building composable LP protocols on top
One LP per pool
This is a deliberate design choice:
- Simple fee accounting — no pro-rata distribution needed
- Clear authority — one entity controls pool parameters
- Full transferability — LP rights are a single, tradeable asset
- No LP token fragmentation — no impermanent loss calculations across multiple LPs