> For the complete documentation index, see [llms.txt](https://abex-protocol.gitbook.io/abex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://abex-protocol.gitbook.io/abex/for-lps/provide-liquidity/alp-liquidity-token.md).

# ALP (Liquidity Token)

## What is ALP 

The ALP token is an ownership pass to the ABEx liquidity pool. Each ALP token held represents the liquidity provider's share of the pool.

The price of an ALP depends entirely on the price change of all the index tokens in the pool. If the price of a risky asset in the pool rises, the price of the ALP rises. Conversely, the price of the ALP falls. The asset pricing characteristics of ALP are close to those of an ETF in traditional finance.

### Index Tokens

Index tokens make up the liquidity holdings and they are also the underlying assets of the ALP. Currently ABEx supports index tokens of

| Asset class   | Proportion | Details       |
| ------------- | ---------- | ------------- |
| Stablecoins   | \~90%      | USDC and USDT |
| Next Bluechip | \~10%      | Sui           |

{% hint style="info" %}
This is a temporary initial setting for now, values may be adjusted in the future.

Details of the composition will be published in the future on the ABEx Dashboard
{% endhint %}

### Utility

As the most important liquidity provider of the protocol,  ALP holders receive 100% protocol profits including:

1. Swap fees
2. Open/Close position fees
3. Reserving fees