KLP: ISOLATED EXTERNAL COUNTERPARTY CAPITAL.
Robinhood Punch uses modular dKLP and KLP classes plus the Core Pool. Each solvency domain owns its assets, NAV, risk, fees, markets, rewards, and lifecycle; the Core Pool has no LP shares at all. A basket-backed KLP is also live on Flow EVM today.
WHAT KLP IS
KLP works like GMX's GLP. You mint KLP by depositing any pool asset; you burn KLP to withdraw. The mint and redemption price track the total value of the pool's assets, including the unrealized profit and loss of open trader positions, divided by KLP supply. Deposits that move the pool toward its target weights pay lower fees; deposits that push it further away pay more. That keeps the basket balanced without an active manager.
ONE SOLVENCY DOMAIN PER CLASS
SOLVENCY DOES NOT CROSS DOMAINS
KLP ON FLOW EVM
| Asset | Target weight |
|---|---|
| PYUSD0 | 50% |
| WFLOW | 35% |
| WETH | 7.5% |
| WBTC | 7.5% |
The pool behind the Flow markets is a stable-heavy basket of PYUSD0, WFLOW, WETH, and WBTC. Contract addresses are published in Chains & Contracts.
DEPOSITS & PYTH
KLP prices the whole basket at once using Pyth's live feeds. A deposit or withdrawal is two quick signatures: the first publishes fresh prices on-chain (you pay Pyth's small fee in FLOW, roughly 0.5 FLOW per feed, with the exact amount shown in your wallet), and the second is the deposit or withdrawal itself, signed within the 60-second freshness window. The app walks you through both steps and rebuilds the quote if the window lapses.
KLP ON ROBINHOOD CHAIN
OPTIONAL CLASS, NOT A FLOW CLONE
Assets, markets, fees, reward budgets, reporters, and risk parameters are class-local. No Flow fee split or basket weight carries across solvency domains.
Robinhood share pricing uses a threshold checkpoint from a governance-appointed permissioned reporter set, tied to a specific reporter generation and a snapshot no older than the latest position mutation. A reporter-set or threshold change invalidates unfinished prior-generation votes. Disagreement, non-quorum, or realized PnL closes priced share actions until cash and open PnL are reconciled again. Direct balance changes are incorporated before deposits or withdrawals; pre-genesis value receives permanently locked shares rather than becoming a windfall for the first depositor.
LP exits escrow shares, fix the receiver, and mature through a bounded utilization-sensitive delay. Payment remains junior to maximum trader profit reserves and accrued protocol fees. This can delay an LP even after a request matures; it does not delay an admitted KLP trader's capped profit settlement.
Viability is a two-sided economic condition. Trader demand must coexist with willing LP capital after expected trader PnL, return variance, exit delay, governance exposure, and the LP's outside option. PUNCH or fee routing may affect required return, but neither guarantees sustainable liquidity.
WHAT FLOW KLP HOLDERS EARN
- 50% of the protocol fees on their chain (open/close fees, borrow fees, swap fees, and liquidation revenue), paid in the pool tokens themselves. This is a fee share, not an emission.
- PUNCH emissions from the KLP slice of the 725M emissions allocation, released on a published schedule.
WHAT LPs RISK
YOU ARE THE HOUSE
Historically, aggregate trader PnL on GMX-style venues has favored the pool. Past results guarantee nothing. Read Risk & Disclosures before providing liquidity.
AND dKLP?
dKLP is an optional emerging-market instance of the same modular LP settlement design—not a “third pool” attached to Flow KLP. It admits only assets whose live trust facts satisfy its class policy, settles capped trader profit immediately, and owns its vault, NAV, margin, risk, fee, and reward domains. A dKLP loss cannot reach KLP or Core Pool cash. The full design is in dKLP admission architecture and the design paper.