Executive Summary 1) LP Tokens and Staking derivatives are digital primitives that were only recently introduced as financial instruments in decentralized finance (DeFi). Each asset has mixed properties both as security and commodity. LP tokens can be viewed as a mutual fund (classifying it as a security) but the underlying tokens in the pool are not further invested in other enterprises, meaning the tokens are only locked in a “pool” to follow a constant function market maker (classifying it as a commodity).
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