Liquidity pools
Liquidity Pools - DexFlow
Last updated
Liquidity Pools - DexFlow
Last updated
Important information: Please be aware that the technical details of this chapter may change and that our platform is currently only available on content.
Our liquidity pools are created to offer large financial incentives for monetary contributions from liquidity sources. Regardless of the sort of pool they choose, liquidity providers can earn up to 80% of the fees generated by any pool using our pools. These advantages are quickly provided to liquidity providers, enabling them to immediately witness the results of their efforts.
The following features of our pools will revolutionize pool design in the Binance Smart Chain ecosystem:
The token balances can be chosen when a liquidity pool is constructed in a flexible way that does not follow the conventional 50/50 ratio. Instead, we apply a weighting of, say, 95/5 in our pools.
Additionally, based on each pool's total liquidity and trading volume, the pool designer can dynamically change the swap charge for each pool. This implies that when liquidity and trading volume are low, creators may increase fees at the launch of a new pool to attract more liquidity providers. As trade volume increases and the pool is more established, fees might be gradually reduced. The prices for each swap can range from 0.10% to 2.00%, offering a range of options for projects wishing to increase liquidity.
Different assets are accepted by our pools, and users or our protocol can deposit or withdraw certain assets. Due to this, single-sided liquidity mining is made possible, in which a user adds just one asset to a pool of several assets. A user can only add $WBNB tokens to a pool that, for instance, has 80% $BNB and 20% $WBNB in terms of USD. Due to fewer $WBNB being staked than $BNB, a bigger portion of the liquidity provider charge is distributed to $WBNB stakes, meaning that the user will get more incentives for staking $WBNB. Due to economic incentives, this liquidity pool architecture lowers the danger of momentary loss for the customer and leads to more stable liquidity pool weightings, resulting in higher fees.
On our platform, weighted pools and stable pools are also offered. Stable pools are made for stable assets like $USDC/$USDT or $BNB/$WBNB whereas weighted pools are suitable for volatile assets like $USDT, $WBNB, or $USDC to provide a reliable and predictable trading experience.
They allow up to 5 assets per pool
Users can add only one asset to a pool
Balanced or unbalanced LP token withdrawals are possible from a pool
They allow flexible asset weightings of e.g. 90/10%
The swap fees are between 0.1% and 2.0%
The swap fees are adjustable over time by the pool initiator
Our capacity to offer single-sided liquidity serves as the foundation for our intelligent liquidity routing solution. utilizing frequently used assets like $BNB, $WBNB, $USDC, $USDT, and others, we may create yield optimization pools (SLR Pools), where users may stake their assets utilizing one-sided liquidity. To provide single-sided liquidity and produce the highest fees, the staked assets are subsequently distributed to liquidity pools. The staking pools and individual stakers are then given a portion of these fees. The fact that our protocol automates pool selection and ensures the highest and most efficient APYs while reducing risks enables users to connect with liquidity pools with ease. Users can deposit one asset to provide liquidity to several pools, reducing risk and increasing income.
Users deposit $USDT or $BNB to one of our smart liquidity routing pools, the pools collect the liquidity.
The smart liquidity routing pools send the liquidity to multiple pools within the DexFlow Dapp.
The generated $USDT or $BNB fees are sent back to the smart liquidity routing pools and distributed to all stakers.
On all pool metrics, including trading volume, existing liquidity, and asset balances, the protocol automatically rebalances the smart liquidity routing liquidity.
Example 1: The $USDT smart liquidity routing pool contributes liquidity to pool a due to its low $USDT balance and higher APY potential, while withdrawing liquidity from pool b due to its high $USDT level.
Example 2: The $BNB smart liquidity routing pool contributes liquidity to pool b due to its low $BNB balance and higher APY potential, while withdrawing liquidity from pool c because of its high $BNB level.
Owners of our tokens will control our entire smart liquidity routing system. That program must use people to make some judgments. It consists of the following choices:
Creation and termination of smart liquidity routing pools, e.g. $USDT or $BNB
Inclusion and exclusion of normal liquidity pools into the smart liquidity program, e.g. $WBNB/$USDT
By utilizing governance mechanisms to manage the smart liquidity routing program, we can circumvent the influence of our team on crucial choices that have an immediate impact on the potential rewards and hazards of our protocol. Additionally, we want to stop malicious players from setting up flawed pools with worthless tokens, such as 99/1 $GO/$USDT, to drain liquidity from our smart liquidity routing pools.
Our research and estimates show that arbitrage opportunities inside DeFi ecosystems result in an average annualized TVL loss of 27.8%. Our protocol's internal arbitrage strategy will keep outside arbitrage bots out, increasing revenue. The additional revenue will be distributed to our liquidity providers. We thus expect to provide an average of 20% more APY. Additionally, this feature lessens slippage and pricing implications, guaranteeing that our traders always get the best deals.
