Tapio Protocol Introduced tDOT
Tapio Protocol introduced tDOT, the first synthetic DOT to the Polkadot ecosystem.
As new Parachains continue to go live in the Polkadot and Kusama ecosystem, they are witnessing an increasing number of staking and crowdloan derivatives.
- Acala — LKSM, LDOT, lcDOT
- Bifrost — vKSM, vsKSM, vDOT, vsDOT
- Parallel Finance — cKSM, sKSM, cDOT, sDOT
The vibrant selection of derivatives enables increased usability for DOT and KSM. However, it also introduces two major problems for the Polkadot and Kusama ecosystem as a whole:
- Liquidity siloed within an individual Parachain and becomes highly fragmented
- Parachains are competing against each other for DOT and KSM liquidity
Tapio & Taiga Protocol is motivated to maximize liquidity efficiency by removing silos caused by DOT and KSM derivatives. We believe introducing a synthetic standard to unify different forms of DOT and KSM liquidity can help realize the multichain vision of Polkadot and Kusama!
What is tDOT?
tDOT is the first synthetic DOT aimed at standardizing different formats of DOT derivatives for increased usability, yield and liquidity efficiency.
Backed by individual liquidity pools made up of native DOT and DOT derivatives*. tDOT provides a highly stable value peg against native DOT while enabling a high degree of composability with new and existing Parachains and dApps.
tDOT on Acala currently made up of DOT and staking DOT. Backed by the DOT-LDOT liquidity pool.
How tDOT Works?
All tDOT will be mint on Acala as it serves as the primary DeFi hub on Polkadot. The Acala ecosystem has an abundance of use cases and economic value for tDOT as it holds a significant amount of Staking DOT and Crowdloan DOT.
The composition of tDOT is design to support any DOT-xDOT asset pairs. Our plan is to introduce DOT-lcDOT as the next tDOT composition on Acala.
Each DOT-xDOT liquidity pool is a trading pair between DOT and xDOT. It allows a dynamic trading range between DOT and xDOT and also ensures the value of the pooled derivative is pegged to DOT.
About Tapio & Taiga
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.
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