Unveiling Tokan Exchange
Tokan serves as a vital liquidity and exchange layer for the Scroll L2, addressing liquidity challenges at the protocol level. Tokan Exchange is entirely open-source and modular; designed to streamline the liquidity sourcing dilemma for protocols and drive growth and adoption of the Scroll L2.
Core Objectives:
1. Sustainable Decentralized Exchange
Tokan innovates the typical DEX structure in three main ways. Allowing protocols to reduce emissions and sustainably source liquidity, offering traders the best prices through deep liquidity via a hybrid AMM, and allowing liquidity providers to earn a sustainable, predictable yield.
2. Supporting Protocols on Scroll
Tokan is committed to supporting new and existing protocols launching on the Scroll network, as well as integrating protocols from other chains. It provides these protocols with the necessary tools to bootstrap liquidity and sustain growth effectively. This support is crucial for the development and expansion of the Scroll DeFi ecosystem.
3. Long-term Productive Growth
Ensuring long-term, productive growth is a priority for Tokan and the Scroll ecosystem. By offering innovative emissions strategies and aligning objectives among protocols, users and liquidity providers, Tokan creates a sustainable environment conducive to growth and development.
4. Providing Cost-effective Liquidity Solutions
One of the significant challenges that new and even mature protocols continuously face is sustainably sourcing liquidity. Tokan addresses this issue by offering a cost-effective solution, while maintaining sustainability. Through the building of veTKN positions and incentivizing veTKN holders to vote for their pool, protocols can accumulate liquidity without greatly reducing the risk of hyper-inflation of their tokens.
How It Works:
Tokan is built on the ve(3,3) concept introduced by Andre Cronje. The ve(3,3) mechanism incentivizes actions that enhance the platform’s success, including supplying liquidity and retaining tokens over extended periods. Participants in liquidity provision are rewarded with TKN emissions, whereas veTKN holders benefit from protocol fees, incentives, rebases, and influence over governance decisions.
We have spent the past few months tirelessly learning from previous attempts at implementing the ve(3,3) concept and refining our launch strategy, tokenomics and core fundamentals to ensure the exchange’s long term success and viability.
Summary
Tokan is launching on Scroll Mainnet. Tokan is a Solidly-Style DEX built on the ve(3,3) concept. By prioritizing community involvement, sustainability, and avenues to efficiently source liquidity for protocols, Tokan aims to drive widespread adoption and growth of the Scroll ecosystem while providing essential infrastructure and support to protocols. As the Scroll DeFi landscape continues to evolve, Tokan will play a crucial role in shaping its future trajectory.
