> For the complete documentation index, see [llms.txt](https://provident-capital.gitbook.io/provident-capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://provident-capital.gitbook.io/provident-capital/protocol-information/phase-2-token-generation-event/provident-liquidity-plp.md).

# Provident Liquidity (pLP)

The requirement to lock liquidity tokens in the form of pLP serves the Provident's money market in multiple ways:

* **Long-Term Participation:** Locking pLP tokens effectively commits users to a set period, increasing the likelihood that they'll maintain vested in Provident Capital.
* **Revenue Sharing:** This commitment enables 100 % of Provident Capital's fees and revenues, rewarding those who are invested in the protocol's long-term vision.
* **Governance Power**: pLP give users governance power to partipate in Provident Capital's future growth.
* **Attracting New Users:** The above dynamics makes Provident's money market more appealing to potential liquidity providers, thereby stimulating both growth and development.

## Max pLP Locking APR

#### **Maximum Lock APR**

This is calculated as the highest APR achievable when pLP is locked for a one-year period.

* **Formula**: `1-month lock APR * 1-year lock multiplier (25x)`

#### 1-Month Locking APR

This is the current APR for locking your pLP tokens for a one-month period.

* **Formula**: `(Total 1 Month Lockers’ Share of Annualized Protocol Fees) / (Total 1 Month Lockers’ Share of pLP Pool Size)`

#### **1 Month Locker Share of Protocol Fees**

* **Formula**: `(1 Month Locker Share of Protocol Power) / (Total Protocol Locking Power)`

#### Total Protocol Locking Power

The sum of all lockers’ shares, each adjusted by its respective multiplier.

* **Formula**: 

```
= (1 Month Lockers' Share of pLP Pool Size * 1 Month Locker Multiplier (1x)) 
+ (3 Month Lockers’ Share of pLP Pool Size * 3 Month Locker Multiplier (4x))
+ (6 Month Lockers’ Share of pLP Pool Size * 6 Month Lockers’ Multiplier (10x))
+ (12 Month Lockers' Share of pLP Pool Size * 12 Month Locker Multiplier)
```