Liquidity provision
What Are CPM?
Think of a CPM (Cyberperp Market) as the engine behind every market. Each one is built from three pieces:
Index Price Feed — the oracle that tracks the asset price. Longs and shorts open and close against this feed.
Long Token — the actual asset that collateralizes long exposure.
Short Token — the stablecoin (or other asset) that collateralizes short exposure.
So for an IOTA/USD market backed by WIOTA and USDC: the index feed tracks IOTA/USD, WIOTA backs the longs, and USDC backs the shorts. Pretty straightforward.
A couple edge cases worth knowing:
SWAP-ONLY / SPOT-ONLY markets — these exist purely for swapping tokens, no leverage trading.
Single-token pools — both the long and short side are backed by the same asset (e.g. a WIOTA-only pool uses WIOTA for both sides).
Buying CPM Tokens
Here's the flow:
Pick your Market and use the "Buy CPM" box.
Check the price impact — it'll be positive if your deposit helps rebalance the pool, negative if it pushes things further out of whack.
If the pool is already well-balanced and you're going in heavy, expect a chunkier negative price impact. Pro move: use the "Pair" option and deposit an equal USD value of both the long token and short token. This keeps the pool balanced and your price impact minimal.
Selling CPM
Same page, opposite direction — use "Sell CPM" to redeem.
One thing to keep in mind: redemption capacity isn't unlimited. Tokens in the pool get reserved based on total open interest, so the available liquidity for withdrawals = pool tokens × reserve factor − reserved tokens. If that ceiling gets hit, you'll need to wait for traders to close positions or for new deposits to come in before you can exit.
The upside? When utilization is that high, borrow fees spike — which naturally attracts new liquidity and should open up capacity over time.
Shifting CPM Tokens
You can move your CPM position between pools directly on the Pool page — no need to sell and rebuy.
The catch: shifts only work between pools that share the same backing tokens. Since you're not actually buying or selling, there are no buy/sell fees. Price impact still applies though, but for balanced pools it should be negligible. The UI shows you the cost before you confirm.
How Token Pricing Works
CPM token price is a function of two things:
The value of the underlying long and short tokens in the pool.
Net pending PnL from traders' open positions.
Every fee collected from leverage trades and swaps flows directly into the pool, which pushes the CPM token price up over time. That's your yield.
Some long/short tokens may have a bid-ask spread, which will carry over into CPM pricing when you buy or sell.
Hedging the OI Imbalance
Funding rates and price impact are designed to keep long and short open interest in check, but perfect balance isn't guaranteed at all times.
If you're an LP looking to hedge the delta, here's the key detail: hedge based on the difference in openInterestInTokens, not the USD openInterest values. The token-denominated figure is what actually matters for your exposure.
Worth noting: the current contracts incentivize OI balance based on USD value. The next iteration will switch to notional value, which will do a better job keeping trader PnL hedged within each market.
Risks
This is DeFi — always approach with caution. Despite testing, audits, and bug bounties, smart contract risk is never zero.
Here's what you should have on your radar:
Smart contract risk — bugs or exploits in the protocol code are always a possibility, no matter how many audits have been done.
Counterparty risk — as an LP, you are the counterparty to traders. When they win, that PnL comes out of your pool. Funding fees and price impact help keep this in check, but long/short balance isn't guaranteed. Edge case: imagine longs are balanced against a bunch of high-leverage shorts. If price spikes hard, those shorts get liquidated and suddenly the pool is net short against a wall of open longs.
Token risk — bridged tokens are only as safe as their bridge. Pegged tokens can depeg. Know what's backing your pool.
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