TaigaProtocol Inaugural Stablecoin Pool
FIntroducing 3pool — TaigaProtocol Inaugural Stablecoin Pool Powering the Kusama Ecosystem.
tl;dr
- 3pool on Karura is the first stablecoin pool powering the Kusama ecosystem
- 3pool is compose up of aUSD, USDC, USDT
- A first of its kind incentive proposal to bootstrap 3pool with KSM from the Kusama Treasury has been approve
- aUSD, TAI and KSM will be allocated to 3pool as additional incentives to incentivize LPs
Firstly, taiKSM has showcased Taiga Protocol’s capabilities in facilitating highly efficient swap between uniform assets (KSM-LKSM). Credit to our Stable Asset system, the same trading capabilities can be seamlessly applied to stablecoin liquidity pools.
With months of preparation alongside Acala/Karura and Wormhole, we are thrilled to reveal the highly anticipated stablecoin 3pool on Karura.
Benefits
3pool on Karura is composed of Tether (USDT), Circle (USDC) and Acala’s aUSD. It serves as the very first stablecoin pool in the Kusama ecosystem with the goal of providing benefits for the following users:
Liquidity Providers
LPs can earn competitive fees by providing stablecoin liquidity of choice. Fees compose of:
- Swap and redemption fees
- aUSD incentives from Acala treasury
- KSM incentives from Kusama treasury council
- TAI incentives from Taiga treasury
Traders
Further, Stablecoins are one of the most heavily trade assets by volume. Traders often look for arbitrage opportunities in stablecoin pools. By introducing 3pool on Karura, Traders can seek profits by replicating their arbitrage strategies while helping 3pool to stay balanced. Furthermore, as adoption for aUSD continues to increase, this will create a natural demand for dApp users to swap between stablecoins.
Project Teams
Whether it’s a DeFi, GameFi or NFT marketplace, the demand for stablecoin liquidity to power decentralized application is imminent. Not only-but also, 3pool can be implement as the underlying swap engine for dApps building on Karura.
Parachains
In fact, 3pool on Karura marks the inauguration of the first stablecoin liquidity pool being integrate as the default liquidity engine on a Parachain. This integration can be replicated on other Parachains since they can leverage the stable asset system as the default DEX engine to facilitate stablecoin swap transactions.
3pool Incentive Schedule
In the meantime, this section will be update as the incentive schedule for 3pool is final. Currently, we are waiting on a governance proposal in the Karura community on the distribution mechanism of KSM subsidy.
Power of Taiga’s Stable Swap
Besides, traders can benefit from Taiga’s stable swap engine, enabling low slippage transactions which allows traders to minimize cost. Taiga protocol has demonstrated the efficiency of the stable swap engine in the recently launched taiKSM pool.
About Tapio & Taiga
Firstly, Tapio is a synthetic asset protocol enabling efficient liquidity for staking, crowdloan and uniform assets. Designed to remove liquidity silos by synthesizing different formats of derivatives into a highly usable synthetic asset on Polkadot. Taiga is the mirror implementation of Tapio on Kusama.
Tapio officially started in early 2021 when we received our first Web3 Foundation Open Grant. And then, they are also the inaugural recipient for the Acala Ecosystem Grant.
