The Pablo DEX Centerpiece Of Composable
Pablo: a modular cross-chain DEX facilitating deep liquidity DeFi experience
The Pablo DEX centerpiece of Composable Finance’s DeFi primitives and serves as the cornerstone of the Picasso ecosystem. Pablo is a cross-chain decentralized exchange (DEX) that incorporates the best of DeFi technology innovation, to provide deep liquidity for tokens across major DeFi blockchain ecosystems, and enable unparalleled customization for DeFi users and their needs.
What is Pablo?
Pablo is a cross-chain DEX built as a pallet on Picasso. Like a traditional DEX, Pablo provides users with the ability to exchange tokens via automated market maker (AMM) pools and also provides those with assets the opportunity for liquidity provision. Unlike other DEXs, Pablo uses protocol-owned liquidity to overcome the constraints of mercenary capital that plague the traditional DEX model and is built with the most advanced DeFi technology available. This gives users features that enable deep customizability and best align with their incentives, such as AMM-pool selection, single-sided staking, custom fee selection, liquidity bootstrapping pools (LBPs), and uniquely designed tokenomics.
Pablo leverages Picasso’s native interoperability to access liquidity from across chains. It can connect to chains across DotSama, IBC-enabled blockchains, and Ethereum Virtual Machine (EVM) compatible Layer 1s and 2s. Pablo is, therefore, able to maintain liquidity for assets across nearly every major DeFi ecosystem, enable their exchange, and is best equipped to launch new token pairs.
How does Pablo support Composable’s Vision of modular DeFi functionality?
Pablo employs modular functionality through its capacity as a tertiary primitive pallet that functions in combination with primary and secondary pallets to deliver robust DEX services across different typesCentauri IBC-Substrate Bridge of AMM curves. It uses the following to do so:
Centauri IBC-Substrate bridge
The Centauri bridge enables secure interoperability and cross-ecosystem communication between Picasso and IBC-enabled chains. As such, Centauri is leveraged as a bridge to the Cosmos network of blockchains and allows the fluid exchange of liquidity between Pablo and IBC-enabled protocols and AMMs.
Mosaic transfer availability layer
The Mosaic transfer availability layer is a bridging pallet that guarantees asset transfer via a series of liquidity mechanisms. Mosaic is used to enable interoperability and liquidity movement between Pablo, and EVM-Compatible Layer 1s and 2s. Pablo also leverages Mosaic’s liquidity mechanisms to help guarantee asset transfers between Pablo and other protocols.
XCM Channels
Picasso is able to open XCM channels to other parachains, which allows liquidity movement and communication in a secure manner without transaction fees. Pablo as a result becomes the platform for other parachains to launch tokens via LBPs and hold liquidity rush events and serves as the primary Substrate DEX for both token exchange and liquidity provision.
Apollo
Pablo uses the Apollo to provide seamless and uninterrupted pricing information on the different token pairs that it offers. Through the use of Apollo, it is able to provide up-to-date information on any Pablo-supported token, even if that token is on another siloed blockchain ecosystem.
Cubic
Pablo uses the Cubic vault pallet to enable users to lock and store tokens in interoperable vaults. Pablo then uses these vaults to create bonding mechanisms. Key to its use of protocol-owned liquidity, as well as staking opportunities to enable governance & avenues for yield generation.
How Pablo overcomes mercenary capital concerns through protocol-owned liquidity
Liquidity providers (LPers) pursue the highest APY, which cannot be provided by a single protocol over the long term. In addition, they are paid out in a DEX’s native token, which creates inflationary pressure on that token. Pablo overcomes both these challenges by offering LP token bonds. LPers can bond their LP tokens for the opportunity to buy Pablo’s native DEX token, $PBLO, at a discounted rate. As a result, Pablo able to own the liquidity it is provided, guarantee token exchange over a diverse portfolio of assets, & avoid $PBLO devaluation.
Pablo’s unique advantage as a cross-chain DEX
Pablo is interoperable with multiple ecosystems and positioned to be deeply liquid. It also has a litany of innovative features that speak to individual user needs and incentives, and make it more efficient, such as AMM-pool customizability, single-sided staking, and custom fee selection. Pablo also made more sustainable over the long term through well-designed tokenomics that combat $PBLO inflation & incentivize its ownership.
In addition to the above, Pablo also enables LBPs. LBPs are a form of auction through which nascent DeFi protocols can launch their native tokens and avoid price & whale manipulation. Means Pablo acts as a cross-chain token launch platform for the wider distribution of new tokens with fair price discovery. Pablo’s governance structure utilizes the fNFT model where users lock PBLO for xPBLO fNFTs.
About Composable Finance
Firstly, Composable Finance is a cross-layer and cross-chain interoperability platform for Layer 2 Ethereum and Polkadot/Kusama. Composable Finance is a cross-chain and cross-layer interoperability platform. The solution is Composable’s dual-pronged approach to interoperability. Includes a hyper-liquidity infrastructure layer for DeFi assets that will be powered by both layer 2 on Ethereum and Polkadot.
