Operations

  • Liquidity Providers (LPs) deposit their asset (ERC-20 token) to pools of interest. In return they receive shares - as per ERC-4626 standard. Shares increase in asset value as protocol operates.

  • 3rd-party protocol adapters (PAs) are implemented and verified to be secure for pool system by Decentralized Autonomous Organization (DAO). The verified adapters are added to pool whitelist, which enables them to use the liquidity.

  • Solvers select 3rd-party protocol adapters from the whitelist according to their solving needs. Taking liquidity comes with protocol fee, which is distributed among LPs proportional to their shares.

  • Pool ensures that liquidity will be (or already) returned back by solvers to enclave (same-asset pool on any supported chain). This is one of the security conditions for adapter to be whitelisted.

  • Pool keeps track of crosschain liquidity balance. Changing the balance in negative way comes with extra rebalance fee for solvers, meanwhile fixing the imbalances is rewarded from the accumulated rebalance fee - which attracts a special kind of rebalance solvers.

  • Liquidity Providers can withdraw their original asset in exchange for the previously issued shares

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