#Pools Archives - Smart Liquidity Research

The Role of Liquidity Pools in Decentralized Exchanges

Annz Santos — Thu, 07 Nov 2024 09:35:35 +0000

Liquidity pools have become fundamental to the operation of decentralized exchanges (DEXs), offering a way for users to trade assets without relying on a centralized authority. In traditional exchanges, liquidity is provided by market makers, but in decentralized systems, liquidity pools fulfill this function. These pools are created by users who deposit pairs of cryptocurrencies into smart contracts, thus providing liquidity for others to trade against.

Unlike centralized platforms, where users trade directly with one another, DEXs use an automated market maker (AMM) system. Through this system, assets are exchanged based on pre-established mathematical formulas, ensuring that trades can occur without the need for a centralized order book. It is by this mechanism that liquidity pools become crucial, as they ensure that users can always trade assets, even in markets with low volume.

When liquidity is added to a pool, the liquidity providers are rewarded with transaction fees, which are distributed based on the proportion of liquidity they have contributed. This incentivizes users to participate in liquidity provision. However, risks such as impermanent loss are also present. Impermanent loss occurs when the value of assets in a pool fluctuates, potentially leading to lower returns for liquidity providers.

Moreover, liquidity pools allow for more decentralized and efficient price discovery. With assets being traded in real time and prices constantly adjusting according to supply and demand, market manipulation is minimized. This ensures that a fairer, more transparent trading environment is created.

In conclusion, liquidity pools play a pivotal role in decentralized exchanges by enabling smooth, efficient, and decentralized trading. They provide liquidity, reward participants, and help maintain a fair trading environment. Thus, the importance of liquidity pools in the decentralized finance (DeFi) ecosystem cannot be overstated.

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Arbitrum’s Effect on Liquidity Pools

Mische Martinete — Wed, 07 Aug 2024 02:18:15 +0000

Arbitrum’s Effect on Liquidity Pools! In the ever-evolving landscape of decentralized finance (DeFi), Arbitrum has emerged as a significant player, impacting liquidity pools across the ecosystem.

As a layer 2 scaling solution for Ethereum, Arbitrum aims to enhance transaction speed and reduce costs, making DeFi more accessible and efficient for users.

What is Arbitrum?

Arbitrum is a layer 2 solution designed to improve the performance of Ethereum-based applications. By offloading most of the transaction processing off the main Ethereum chain, Arbitrum can significantly increase throughput and reduce transaction fees. This is particularly beneficial for decentralized applications (dApps) and protocols that require high-speed and low-cost transactions.

Impact on Liquidity Pools

Liquidity pools are the backbone of decentralized exchanges (DEXs) and other DeFi applications. They allow users to trade assets without the need for a centralized intermediary, relying instead on automated market makers (AMMs). Arbitrum’s scaling solution has several effects on these liquidity pools:

Reduced Transaction Costs: High gas fees on Ethereum have been a major barrier for users looking to participate in DeFi. By lowering these costs, Arbitrum makes it more feasible for users to provide liquidity and participate in trading activities, thereby increasing the overall liquidity in the pools.
Improved Transaction Speed: Faster transaction processing means that trades can be executed more quickly, reducing slippage and improving the overall user experience. This speed enhancement can attract more traders to the platform, further boosting liquidity.
Enhanced Security and Scalability: Arbitrum leverages Ethereum’s security while providing a scalable solution. This ensures that users can trust the platform, encouraging more significant investments in liquidity pools.

Real-World Applications

Several DeFi projects have already integrated with Arbitrum to leverage its benefits. These integrations have shown promising results, with increased user engagement and more robust liquidity pools. For instance:

Uniswap: One of the largest DEXs in the DeFi space, Uniswap has integrated with Arbitrum to offer faster and cheaper transactions. This integration has led to a notable increase in liquidity and trading volume on the platform.
SushiSwap: Another popular DEX, SushiSwap, has also adopted Arbitrum, providing its users with a more efficient trading experience. The reduced fees and improved speed have made it an attractive option for liquidity providers.

Future Prospects

As more DeFi projects continue to adopt Arbitrum, we can expect a significant shift in the dynamics of liquidity pools. The combination of lower costs, faster transactions, and enhanced security will likely attract more users to the ecosystem, increasing liquidity and improving market efficiency.

Moreover, Arbitrum’s ongoing development and upgrades promise further enhancements, ensuring that it remains a vital part of the DeFi infrastructure. As the DeFi space continues to grow, Arbitrum’s role in shaping the future of liquidity pools cannot be overstated.

In Summary

Arbitrum’s impact on liquidity pools is profound, offering solutions to some of the most pressing issues in the DeFi space. By providing a scalable, cost-effective, and secure environment for transactions, Arbitrum is paving the way for a more accessible and efficient DeFi ecosystem. As more projects integrate with Arbitrum, the benefits will continue to multiply, driving the growth and maturity of decentralized finance.

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Orca Whirlpools Rotation #16

Ana Marie — Sat, 19 Nov 2022 22:11:44 +0000

Orca Whirlpools Rotation #16: November 17th — December 1st

A storm is no match for the apex predator of Solana DeFi…

Orca Whirlpools Rotation #16

Duration: Thursday November 17, 2022 — Thursday December 1st, 2022
Total Rewards: The rewards are detailed below for each Whirlpool with total rewards of ~30K ORCA per rotation across all pools. Rewards will begin on November 17th at ~24:00 UTC.
If you have ever wanted to deploy your own Whirlpool, your chance to give it a spin is now live through Community Listings! Give it a try here and read this post to get acquainted 👀

Note for LPs: All rewards on soBTC pools will end with today’s rotation. Please be careful trading any Sollet wrapped assets as they have significantly de-pegged from their native assets.

Double-Dip pools

Double-Dip Whirlpools offer LPs two different token rewards plus trading fees.

BAT/USDC rewards have begun, courtesy of Brave

Double-Dip duration: until January 12, 2023
BAT rewards: ~12,500 BAT per week
Orca rewards: ~100 ORCA per week

Other fresh Whirlpools

Whirlpools offer market-savvy LPs the opportunity to compete for higher yields

To help bootstrap liquidity across several new fee tiers and pools, the following pairs will receive ~250 ORCA/week in rewards:

SOL/USDC (0.01% fee tier) from Solana
SOL/USDC (1.0% fee tier) from Solana
SOL/whETH (0.05% fee tier) from Solana and Portal
SOL/whETH (0.3% fee tier) from Solana and Portal
SHDW/USDC (0.3% fee tier) from GenesysGo
SHDW/SOL (0.3% fee tier) from GenesysGo
GMT/USDC (0.3% fee tier) from StepN
GST/USDC (0.3% fee tier) from StepN

Lastly, through Community Listings, you’ll soon see new pools arriving ashore from several Solana projects:

JELLY/USDC (0.3% fee tier) from Jelly Rascals
svtBV/SOL (1.0% fee tier) from Solvent
svtGENE/SOL (1.0% fee tier) from Solvent
svtGOON/SOL (1.0% fee tier) from Solvent
svtHNYG/SOL (1.0% fee tier) from Solvent
svtEPOCH/SOL (1.0% fee tier) from Solvent
svtWAVE/SOL (1.0% fee tier) from Solvent
svtTHUGZ/SOL (1.0% fee tier) from Solvent
svtVSNRY/SOL (1.0% fee tier) from Solvent
SSURF/SOL (1.0% fee tier) from Solvent

New arrivals in the Orca ecosystem: LP Vaults

Concentrated liquidity just got a lot simpler

A vault is a smart contract (“program” on Solana) that conducts certain actions on-chain to actively and automatically manage liquidity provided to concentrated liquidity platforms like Orca.

Below you can find a few of the newest additions.

Tulip.garden: Concentrated liquidity vaults that reduces divergence loss and auto-compounds rewards.

Kamino.finance: Vaults that gives LPs exposure to the benefits of concentrated liquidity without continuous rebalancing. Kamino also offers a novel method to use Whirlpool LP positions as collateral.

Nazare.so: Vaults that allow depositors to take advantage of concentrated liquidity without actively managing their positions themselves.

Investin.pro: Active liquidity provision executed by individual vault managers. LPs are able to monitor activity through a UI that shows vault positions with performance charts and expected APRs.

About Orca

Orca the easiest way to exchange cryptocurrency on the Solana blockchain. There, you can exchange tokens with minimal transaction fees and lower latency than any DEX on Ethereum, all while knowing that you’re getting a fair price. Additionally, users may provide liquidity to a trading pool to earn a share of trading fees.

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Midas Capital Partners With Transfero

Ana Marie — Thu, 27 Oct 2022 14:59:14 +0000

Midas Capital Partners With Transfero

Midas Capital Partners With Transfero. The BNB ecosystem at Midas Capital is expanding with the launch of the Transfero Stables pool. The pool will enable users to borrow BRZ, a stablecoin pegged to the Brazilian Real. With this pool, users can collateralize and borrow blue chip crypto assets such as BTC, ETH, and BNB with BRZ and enable various strategies.

This will be the first DeFi money market enabling users to borrow and collateralize a Brazilian Real stablecoin. For users who want to operate with the Brazilian Real as their base currency, they can now do so without needing to consider FX swap rates between the Brazilian Real and USD.

About the pool

Initial pool structure:

Collateral: BTC (70% LTV), ETH (70% LTV), 3BRL (80% LTV), MAI (70% LTV), BRZ (70% LTV), WBNB (70% LTV)

Borrowable: BRZ, BTC, ETH, MAI, WBNB

Access The Pool

Pushing Down Borders With BRZ

The BRZ token, which was the first stablecoin in the world to be pegged to the Brazilian real, is empowering Brazilian users to be a part of the crypto ecosystem through their native currency. This allows users to operate directly in Brazilian Real without needing to consider Brazilian Real and USD price movements. The BRZ token is built-up on top of Ethereum, Solana, BNB Chain, Polygon, and many more chains, offering an unparalleled opportunity for a multi-chain ecosystem.

With the Midas pool, Brazilian users will be able to borrow their native currency against their blue chip assets, such as BTC, ETH, and BNB, or collateralize their native currency against these blue chip assets. The pool on BNB may just be the beginning of Transfero’s partnership with Midas, and in the future, we may see a multi-chain ecosystem with many other local markets available for users to borrow and earn yield with.

About Transfero

Specializing in offering financial solutions using Blockchain technology, Transfero was created with the aim of facilitating the entry of investors into this new global financial system. In addition to offering resource management services, purchase/sale of cryptos, and payment processing, among others, Transfero also contributes to the popularization of crypto assets through a free online financial education platform. The platform has a global presence, with specialized partnerships to transform the crypto market in Latin America.

Website | Twitter |

About Midas Capital

Midas Capital bringing isolated and customizable money markets to EVM-compatible blockchains. Enabling users, DAOs, & protocols to create customized and isolated pools for lending and borrowing any asset. The Midas is building a cross-chain ecosystem that democratizes money markets. Pool creators have the flexibility to modify pool parameters according to their risk appetite. With isolated pools, Midas offers stellar features for large-scale institutions, protocols, and traditional investors.

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Orca Whirlpools Rotation #9

Ana Marie — Sat, 13 Aug 2022 10:53:44 +0000

Whirlpools Rotation #9: August 11th — August 25th

Fresh Orca Whirlpools Rotation #9 and Double-Dips are rolling into the Orca ecosystem.

Whirlpools Rotation #9

Duration: Thursday August 11th — Thursday August 25th, 2022
Total Rewards: ORCA rewards for this Rotation will be ~30K ORCA per week, with the distribution across our pools detailed below. All Whirlpools and Aquafarms are now open and rewards will begin on August 11th at ~20:00 UTC.
Events: The submission form for the Solana Summer Camp Hackathon is now live, with prizes of up to $50,000 for innovators in DeFi. With Orca co-founder Ori and Orca’s head of BizDev Milan judging, we encourage all podmates who want to build in the ocean of DeFi to participate! 🐳

Double-Dip pools

Double-Dip Whirlpools offer LPs two different token rewards plus trading fees.

#1 SLND/USDC from Solend

Double-Dip duration: August 11th — September 8th 2022
SLND rewards: ~1,600 SLND per week
Orca rewards: ~200 ORCA per week

#2 ABR/USDC, acCELO/USDC, afFTM/USDC extended from AllBridge

Double-Dip duration: August 11th — September 8th 2022
ABR rewards: 4,600 ABR per week across all pools
Orca rewards: ~1,600 ORCA per week across all pools

#3 svtOKAY/SOL extended from Solvent

Double-Dip duration: August 11th — August 25th 2022
SVT rewards: ~300 SVT per week
Orca rewards: ~100 ORCA per week

Other fresh Whirlpools…

Whirlpools offer market-savvy LPs the opportunity to compete for higher yields

#4 KI/USDC from Genopets

Note: the old version of KI is now listed as depKI/USDC, with the newly released version under KI/USDC.

#5 MEAN/SOL from MeanFi

While these Whirlpools receive no additional token rewards, they are highly capital efficient and provide tactical opportunities for Sharks! 🦈

Deepsea Insights

With every Rotation, there’s always something interesting going on in the Orca ecosystem…

This week’s Deepsea Insight comes courtesy of Hubble Protocol and Marinade!

Hubble’s listing of several Whirlpools last Rotation led to some speculation on how much activity the the new pools would attract. Turns out, there’s been plenty of activity taking place under the sea…

Note the difference between volume and liquidity. With the power of Whirlpools, liquidity in the USDH/USDC can facilitate more than seven times as much trading volume! 🌀

Additionally, Marinade recently transitioned their MNDE rewards to a decentralized model where MNDE holders can vote on directing MNDE to incentivize mSOL liquidity across the Solana ecosystem. Some mSOL pools have received outsized votes (mSOL/ETH 😉) — if you’re a member of the Marinade community, you can vote in their upcoming proposal ending tomorrow to direct rewards.

About Solend

Solend an algorithmic, decentralized protocol for lending and borrowing on Solana. Lending and borrowing have proven themselves to be key in a DeFi ecosystem.

Website | Twitter |

About MeanFi

MeanFi a censorship-resistant, user-friendly, self-custody, permissionless & trustless bank bringing everyday banking workflows and real-time finance to crypto and DeFi.

Website | Twitter |

About Genopets

Genopets the world’s first Free-to-Play, Move-to-Earn NFT mobile game that makes it fun and rewarding to live an active lifestyle. A Genopet your digital pet whose evolution and growth is inextricably linked to your own. The steps you take every day power your journey through the Genoverse as you explore, battle, and evolve — earning crypto while you play.

Website | Twitter |

About Orca

Website | Twitter |

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Orca Whirlpools Rotation #8

Ana Marie — Thu, 28 Jul 2022 17:03:05 +0000

Whirlpools Rotation #8: July 28th — August 11th

Five new Whirlpools are opening on Orca Whirlpools Rotation #8, including two Fresh Double-Dips.

Whirlpools Rotation #8 🌀

Duration: Thursday July 28th — Thursday August 11th, 2022
Total Rewards: ORCA rewards for this Rotation will be ~35K ORCA per week, with the distribution across our pools detailed below. All Whirlpools and Aquafarms are now open and rewards will begin on July 28th at ~20:00 UTC.
Events: The Solana Summer Camp online hackathon continues, with prizes of up to $50,000 for innovators in the DeFi space. With Orca co-founder Ori and Orca’s head of BizDev Milan judging, we encourage all podmates who want to build in the ocean of DeFi to participate! 🐳

Double-Dip pools 🐋

Double-Dip Whirlpools offer LPs two different token rewards plus trading fees.

#1 mSOL/USDH from Hubble & Marinade

Double-Dip duration: July 28th — August 25th 2022
MNDE rewards: 20,000 MNDE per week
Orca rewards: ~500 ORCA per week

#2 USDT/USDH from Hubble

Double-Dip duration: July 28th — September 22nd 2022
Hubble rewards: 1,000 HBB per week
Orca rewards: ~100 ORCA per week

Other fresh Whirlpools 🌀

Whirlpools offer market-savvy LPs the opportunity to compete for higher yields

While these Whirlpools receive no additional token rewards, they are highly capital efficient and provide tactical opportunities for Sharks! 🦈

#3 DAI/USDH (USDH by Hubble)

#4 HBB/USDH (from Hubble)

#5 UXD/SOL (from UXD Protocol)

🌊 Deepsea Insights 🌏

With every Rotation, there’s always something interesting going on in the Orca ecosystem…

Not only is there a raft of fresh Whirlpools from Hubble this Rotation: Hubble’s existing Whirlpools have also been attracting some interesting activity over the last two weeks.

Of particular note is the Triple-Dip USDH/stSOL Whirlpool, which is boasting strong volumes and trading fees without even considering the additional HBB, wLDO, and ORCA rewards!

About Hubble

Hubble protocol allows users to take interest-free loans against multiple crypto assets. Hubble works with USDH, Hubble’s decentralized stablecoin.

Website | Twitter |

About UXD Protocol

UXD Protocol a fully collateralized decentralized stablecoin backed by delta-neutral position using derivatives.

Website | Twitter |

About Orca

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Acala Launch Of aUSD and KSM Snek Swap Pools On Basilisk

Ana Marie — Thu, 28 Jul 2022 16:27:42 +0000

Basilisk Launches DEX on Kusama With aUSD as Its Parachain’s Stablecoin of Choice

Acala Launch of aUSD and KSM Snek Swap pools on Basilisk, a liquidity protocol built for Kusama. The Snek Swap pools enable Basilisk community members to access Polkadot and Kusama’s native stablecoin, aUSD, in a decentralized and permissionless manner and brings aUSD to a new Kusama parachain as its stablecoin of choice.

aUSD is a decentralized, multi-collateralized stablecoin backed by cross-chain assets, serving as the native stablecoin for the Kusama and Polkadot ecosystem. aUSD is designed to maintain a peg relative to the US Dollar, allowing users to transact, trade, and facilitate services using aUSD while shielding users from price volatility customary to the crypto asset economy.

Snek Swap is Live

BSX, aUSD and KSM holders can now trade:

BSX↔️aUSD
BSX↔️KSM

Each pool will be bootstrapped with 500M BSX (0.5% of the supply provided from the allocation for the LBP) and $11,111 worth of aUSD and KSM.

Access KSM and aUSD on Snek Swap using these links:

Acala Engineers Supporting Basilisk Infrastructure

The Acala engineering and product team has also supported our friends at Basilisk by building a custom bridge integration of Kusama to Basilisk, enabling Snek Swap users to bridge their KSM from the Kusama Relay Chain to Basilisk. The bridge can also be use to transfer BSX, aUSD or KSM out of the Basilisk chain & into Karura or Kusama.

About Basilisk and Snek Swap

Basilisk a liquidity protocol for the Kusama ecosystem. Enabling frictionless liquidity that meets the evolving needs of fungible and non-fungible crypto assets (NFTs). Basilisk’s modular design allows fungible assets to bootstrap liquidity by selecting convenient Automated Market Maker (AMM) models. The first version includes Snek Swap (XYK) pools, allowing users to buy and sell tokens or to become a liquidity provider and earn rewards from trades.

Snek Swap an AMM designed for the Kusama ecosystem, allowing users to transfer tokens utilizing XYK pools in a decentralized and permissionless fashion.

Website |Twitter |

About Acala

Acala a decentralized finance network powering the aUSD ecosystem. The core product, aUSD, a decentralized, multi-collateral, crypto-backed stablecoin serve as the native stablecoin of the Polkadot ecosystem. Acala’s Ethereum-compatible blockchain has built-in DeFi protocols for application developers to leverage, including a trustless staking derivative (liquid DOT — LDOT). A decentralized exchange, and the EVM+, a hybrid EVM offering fully Ethereum-compatible development environment plus full compatibility with Substrate.

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