Protocol-Owned Liquidity(POL)
Liquidity that the protocol itself owns and controls, rather than renting from LPs through incentives.
In-Depth Explanation
POL means the protocol doesn't depend on emissions to maintain liquidity—it owns LP positions outright. Pioneered by Olympus/OHM, POL can be acquired through bonding mechanisms. POL provides sustainable liquidity but requires upfront capital and may concentrate risk.
Related Terms
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Treasury
Protocol-owned assets held in smart contracts, typically controlled by governance for funding development and operations.
Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
More in Tokenomics
View all →Emissions
New tokens distributed by a protocol as incentives, typically to liquidity providers or users.
Liquidity Mining
Earning token rewards by providing liquidity to a DeFi protocol.
Token Buyback
When a protocol uses revenue to purchase its own token from the open market, reducing circulating supply.
Dividend
Direct distribution of protocol revenue to tokenholders, typically in ETH, stablecoins, or the protocol's native token.