Zero Price Impact Mode

On Splice, LPs have the option to activate Zero Price Impact Mode, which allows them to provide liquidity to the PT/SY pool without affecting the price.

Normally, when liquidity is added a portion of the underlying asset is used to mint PT+YT. The YT is then swapped for more PT in order to maximize the number of LP tokens received. However, this purchase of PT can cause a price impact.

With Zero Price Impact Mode enabled, the YT that is minted is not swapped for more PT and instead returned to the user.

Zero Price Impact Mode routing path. Note, instead of just PT, users receive the YT token as well.